Saudi Arabia Dominates Venture Debt Financing in 2023
In a groundbreaking report by MAGNiTT, Saudi Arabia has solidified its position as a leader in the funding space, securing over 53 percent of the region’s venture debt financing in 2023.
The data platform disclosed that Saudi startups raised an impressive $400 million in venture debt last year, marking a staggering 602 percent growth compared to the previous year.
VC Trends in the MENA Region
The Middle East and North Africa region witnessed a total of $757 million in venture debt financing in 2023, representing a remarkable 262 percent year-on-year growth.
Following Saudi Arabia, the UAE emerged as the second-highest recipient of funding with $353 million, showcasing a 222 percent increase. Egypt secured the third spot with $4 million, experiencing an 86 percent annual decline.
Key Sectors and Investors
Fintech remained a favorite sector among investors, with a total of $601 million in financing, marking a 325 percent yearly increase. Notable players like Tabby and Tamara significantly contributed to this growth.
Transport and logistics followed with $150 million in venture debt, a 162 percent year-on-year increase, while e-commerce saw a $3 million decrease of 57 percent.
The top investors by capital deployed were predominantly foreign, with major players like Goldman Sachs, Partners for Growth, and Atalaya leading the pack.
Recent Funding Rounds in the Region
– Agritech startup iyris closes $16m series A round: Riyadh and Dubai-based iyris secured a $16 million funding round to enhance its farming solutions for hot climates.
– BIM Ventures and SBI Holdings launch $100m joint investment fund to support Saudi startups.
– UAE’s Growdash closes $1.8m seed round: Dubai-based foodtech software company secures funding to boost restaurant operations.
– UAE foodtech startup GrubTech secures $15m in series B funding to streamline restaurant operations.
– TVM Capital Healthcare closes $250m Afiyah Fund to support health tech startups in Saudi Arabia.
– Proptech startup Holo secures pre-series A funding to expand its digital mortgage services in the Gulf region.
– Shorooq Partners announces first close of $100m credit fund to invest in MENA-based startups across various sectors.