Saudi Arabia Dominates MENA Startup Funding in September
In September, Saudi Arabia’s startup ecosystem led the Middle East and North Africa region, raising $170.8 million across 23 deals. This accounted for 60 percent of the total funding in the region, according to Wamda’s monthly report.
Significant Increase in Total Funding
A total of $282 million was raised across 63 startups in the region, marking a 234 percent increase month-on-month and a 607 percent rise year-on-year. Debt financing made up 12 percent of the total amount raised.
Top Funding Rounds
Saudi mobility startup SHIFT secured the highest funding in September with $82.8 million, followed by online car marketplace Syarah, which raised $60 million in a series C round, including $20 million in debt financing.
UAE and Egypt Lag Behind
The UAE ranked second with $73.8 million raised by 12 startups, while Egypt saw 13 startups collectively raising $25 million.
Investor Sentiment Favors Fintech
Fintech continued to dominate investor interest in the MENA region for the fourth consecutive month, attracting $102.5 million across 14 startups. Mobility, e-commerce, and educational tech sectors also showed strong activity.
Impact of Accelerator Programs
Accelerator programs, such as Flat6Labs’ demo days in Jordan and Saudi Arabia, played a significant role in deal volume, accounting for 17 deals valued at a combined $2 million.
Focus on Early-Stage Investments
Investors prioritized early-stage investments, with $102 million going into 15 seed deals and $5 million into seven pre-seed startups. Only two later-stage rounds were reported in September.
Notable Startup Funding Highlights
– Saudi edtech startup AILA closed a $1.15 million pre-seed round
– Saudi-based Tawaref acquired local AI company Amaana.ai
– Saudi game studio UMX raised $4.5 million for global gaming growth
– JARAS Hospitality secured $666,000 in a pre-seed round
– SVC invested $15 million in Vision Ventures’ Saqr Fund II
– WellPal relocated to Saudi Arabia after new funding
– Rabbit Mobility raised $1.3 million for North African expansion
– Morocco’s Agenz received funding from Renew Capital
– Moonbase Capital launched a $15 million investment fund
– UAE-based Abhi raised $15 million in debt financing