As Q4 2024 draws to a close, tech startups in the Middle East and North Africa (MENA) region showcased remarkable growth. November alone saw $258 million raised across 46 deals, representing a 92% month-on-month increase but a 196% drop compared to the $764 million raised in November 2023. However, excluding the debt financing from the previous year’s figures reduces the gap to just 32%.
UAE Dominates the Ecosystem
Once again, the UAE emerged as the top-performing ecosystem in MENA. Leading the charge were UAE-based startups eyewa and Lean Technologies, which secured $100 million and $67.5 million, respectively. This propelled the UAE to the top spot for the second consecutive month, with $146 million raised across 11 deals.
Strong Performances from Saudi Arabia and Egypt
Saudi Arabian startups claimed the second-highest funding total, with 23 startups raising $94 million in November. Meanwhile, Egypt ranked third, as eight startups raised nearly $16 million—a significant jump from October’s $1.6 million. This growth is particularly impressive given Egypt’s ongoing geopolitical challenges and the depreciation of its currency.
E-Commerce Takes the Lead
In sectoral performance, e-commerce led the way, primarily driven by eyewa’s impressive funding round. Seven startups in this space collectively secured $104 million. This marked a shift in investor focus, pushing fintech to second place with $80 million raised across four startups. Software as a Service (SaaS) providers also emerged as strong contenders, attracting $21 million across seven rounds.
Later-Stage Funding Gains Traction
November’s investment landscape in MENA saw a significant focus on later-stage funding rounds. Eyewa’s Series C, Lean Technologies’ Series B, and Cipher’s $13.3 million pre-IPO funding highlighted this trend. Series A startups attracted $23 million through two deals, while pre-seed startups led in deal volume, securing approximately $5 million across 16 transactions.
B2B Models Continue to Lead
The business-to-business (B2B) model maintained its dominance, receiving 48% of total funding in November. In contrast, business-to-consumer (B2C) startups raised $11.5 million across 12 deals, with the remainder distributed among eight startups operating in both domains.
Gender Disparity Persists
Male-led startups continued to capture the lion’s share of investment, securing 90% of the total funding. Female-led startups received just $583,000, while startups co-founded by male and female entrepreneurs raised $22.5 million.
November’s Reflection of 2024 Trends
The trends observed in November 2024 align with the broader patterns seen throughout the year. The MENA region’s tech ecosystem is evolving, with stronger performances from later-stage startups and diversified sectoral investments, setting the stage for a promising 2025.
