Saudi Startups Lead the Way in MENA Venture Funding
Saudi startups have taken the lead in the Middle East and North Africa region by securing almost half of the total venture funding in the first quarter of the year. This highlights the Kingdom’s growing influence in the regional startup ecosystem.
According to Wamda’s monthly report, Saudi ventures secured $224 million out of the $429 million raised across the MENA region, showcasing a robust entrepreneurial landscape in the Kingdom.
March Sees Surge in Startup Activity
The surge in startup activity, especially in March, saw MENA startups raising $254 million across 54 deals, indicating a significant uptick compared to previous months and a slight increase from the previous year.
Regional funding experienced a 186 percent growth in March compared to February’s $88.7 million, and a 1.17 percent increase compared to the same month last year.
Saudi Startups at the Forefront
The resurgence in March’s investment activity, particularly during LEAP24 held in Riyadh, has placed Saudi startups at the forefront. Significant contributions, like Salla’s substantial pre-initial public offering round of $130 million, have bolstered the Kingdom’s position.
Investment Trends and Growth
While the UAE and Egypt trailed with $39 million and $7 million respectively, the majority of the quarter’s funding was directed towards software as a service providers, followed by fintech and e-commerce sectors.
Despite the predominance of seed rounds and series A funding, there was a noticeable absence of larger ticket sizes and later-stage investments compared to the previous year. Male-led startups dominated the funding landscape, with a preference for the business-to-business model over business-to-consumer.
Significant Investments and Funds Announced
March was rich in mergers and acquisitions, including deals like MBC Group’s investment in Anghami and Classera’s acquisition of Expert Solutions. Additionally, substantial investment funds were announced at LEAP24, promising more growth and innovation in the region’s entrepreneurial sector.
Investcorp spearheaded the initiative with a $500 million fund dedicated to supporting growth-stage ventures in Saudi Arabia, while Oasis Capital introduced a $100 million fund focusing on early-stage international ventures. The gaming sector also saw investments from the Saudi Esports Federation, Merak Capital, Impact46, and Plug and Play Tech Center.
UAE’s Fortis Secures $20m in Series A Funding
UAE’s fintech Fortis successfully closed its series A funding round, securing $20 million led by Opportunity Venture. This investment signifies a major step forward for Fortis as it aims to redefine the retail tech and fintech environment in the MENA region.
The funds will be used to enhance customer-centric services, establish strategic partnerships, develop omnichannel capabilities, and boost brand-building efforts to expand Fortis’s footprint across the MENA region.
Bahrain’s Daleel Secures Investment from Hambro Perks
Bahrain-based Daleel has raised an undisclosed investment from Hambro Perks Spring Studios. Established in 2022, Daleel offers a platform that simplifies the process for consumers to discover and compare various financial products, with plans to expand its services to Saudi Arabia and the UAE.