The amount invested in the Middle East and North Africa (MENA) region fell drastically in April 2024, with only 19 startups raising $55 million, a 78% fall month-on-month (MoM) from $254 million raised in March but an 87% increase year-on-year (YoY). The ecosystem is still impacted by the first-quarter downturn, with a cautious approach from venture capital (VC) companies. The largest ticket size last month was $20 million for Fortis, a UAE-based fintech, followed by WEE’s $10 million pre-Series A round and Tunisia’s Qodek securing $8 million in Series B funding. Notably, there was a decline in investments in Saudi Arabia, with only three startups receiving $4.8 million, while UAE-based businesses led with $32 million across six deals and Egyptian startups secured $8.7 million over five deals. Fintech emerged as the most funded sector in April, attracting $25.7 million across four firms, with e-commerce securing $10.5 million and AI startup Qodek receiving $8 million. The majority of investments were directed towards later-stage startups, with a notable focus on the B2B sector, recording $42.5 million across 12 transactions. Additionally, a Saudi-Egyptian programme facilitated the entry of ten Egyptian companies into the Saudi market, enhancing regional collaboration. Several venture capital firms launched new funds, signaling continued interest and activity in the MENA startup ecosystem. April also witnessed significant mergers and acquisitions, with Bahrain’s Investcorp acquiring NSEIT and Microsoft showing interest in investing in regional AI player G42.
Investment in MENA Startups Plunges by 78% in April, Ukraine
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