MENA startups raise $116m in June, pushing first half of 2024 to $882m: Wamda

Investment activity in the Middle East and North Africa region’s startup space slowed in June with 38 tech startups raising $116 million, bringing the half-year total to $882 million, according to the latest data.

The amount raised in June saw a 59 percent month-on-month decline from the $282 raised in May but marked a 182 percent increase compared to the same period last year, according to venture news platform Wamda.

In its latest monthly report, the platform stated that UAE-based startups led the region, securing $82.5 million across 15 deals. Egyptian startups followed with $15 million raised by four companies, marking the second-highest total.

Saudi Arabia dropped to third, with seven initiatives raising $13.5 million. Notable activity was also observed in Iraq, with six startups raising an estimated $1.2 million, though this amount could be higher as Orisdi, Bonlili, and Alsaree3 did not disclose their investment values.

June was marked by an absence of mega deals, with Tenderd’s $30 million agreement having the biggest ticket size.

Sector-wise, fintech reclaimed its position as the most funded field, securing $38 million with over 10 deals, closely followed by construction technology, thanks to Tenderd’s deal. Meanwhile, three proptech startups raised $19.6 million in June, reversing the lead it achieved in May.

The majority of June’s investment went to the pre-series A stage, with four startups receiving $45 million, followed by the seed stage, where five startups raised $27.3 million.

However, when considering investment volume, early-stage startups are still capturing the attention of investors, with eight startups at their pre-seed stage garnering $3 million and an additional eight securing $140,000 in grants.

Startups operating the business-to-business model dominated most of the funding in June, raising $66.4 million across 18 deals, accounting for 74 percent of the total investment, while 20 business-to-consumer startups raised $49.5 million.

The majority of funding went to male-founded startups, which received $103.4 million, or 89 percent of the total, while two female-led startups raised $200,000.

The UAE was the top-funded ecosystem in the region in the first half of 2024, with 91 UAE-based startups raising $455.5 million, down from $604 million in the same period last year.

Saudi Arabia followed, attracting $300 million in total funding, down from $554 million last year.

Egypt’s economic crisis has pushed the Egyptian startup ecosystem to a drastic decline, with just 33 startups raising $83 million, an 80 percent drop from the same period last year.

In contrast, the Moroccan ecosystem gained momentum, with six startups securing $12.5 million in funding in the same period.