The MENA region remains a hub of innovation in the technology sphere. In July 2023, the region saw $95 million go to fund 31 different deals in the startup scene, with One Moto’s $40 million lease financing round representing the largest raise. Despite a dip in the dollar figure from the same month last year, the picture shifts slightly when this deal is taken out, with the equity investment increasing to $55 million.
Leaders among startups
UAE-based startups led the charge, garnering the largest share of the total investments with $14 million, closely followed by those in Saudi Arabia with an impressive $18 million. Egypt and Morocco took the subsequent spots, raising $7 million and $2 million respectively.
Though Mobility was the top-funded sector overall, it was foodtech that received the majority of the capital raised in July. Five deals secured a total of $17 million, demonstrating a growing demand for enterprise SaaS solutions within the F&B industry.
However, the picture isn’t entirely rosy, as female-founded startups remain underfunded. Only one deal across the region went to a female-led startup, a recent accelerator graduate of Flat6labs Amman. Mixed-gender founding teams fared better, raising $12 million over six deals, but all-male-led startups gathered the lion’s share of $84 million.
Though equity investments are contracting, the region was not at a loss of activity in July. Acquisition deals were aplenty – including HyperPay’s purchase of Sanad Cash, and the EDGE Group’s scooping up of OryxLabs – and the launch of the foodtech-specific $54 million Agthia Group fund, as well as the new 500 Global accelerator programme geared towards Egyptian accelerator and incubator managers were key highlights of the month.This is good news compared to April, when there was minimal fundraising by startups in 2023.
A message for company founders
The MENA region is alive and kicking, as investments in tech remain active regardless of the dip from last year – and with the growth of enterprise SaaS solutions in the F&B industry and promising acquisition news, the future looks bright. Whether you’re an ambitious founder or investor, the MENA region is rife with opportunities you don’t want to miss! So don’t waste time and seize the opportunity – if you’re looking to make a mark in the future of the MENA tech industry, now is the time to act.
August 13, 2023