Startups in the Middle East and North Africa region (Mena) raised $375 million across 81 deals in February 2022, a 51.6 per cent increase month-on-month, and a 134 per cent increase year-on-year.
Of the total amount raised, Saudi startups hauled in the most with $219 million in 23 investment deals, amounting to 58 per cent of the overall funding value, thanks mainly to Trukker’s $96 million Series B round and Nana’s $50 million growth round. UAE startups raised a total of $77.6 million across 20 deals, while Egypt-based startups raised $70 million across 18 deals. The three markets together received 98 per cent of the overall funding value.
Other markets that saw rising momentum were Tunisia and Morocco, whose startups raised $1 million and $4 million respectively.
Last month witnessed a clear uptick in funding across all stages, with a notable rise in the number of Series A investments. Pre-Seed and Seed-stage deals continue to dominate as far as deal count is concerned.
Accelerators remain a prime source of funding for early-stage startups. Last month, TechStars Riyadh was the most active accelerator, having invested in over 12 startups across the region, followed by Flat6Labs, who saw eight of its Tunisia cohort graduate.
Regionally, investors based in Saudi Arabia were the most active and participated in 27 deals, while investors based in the UAE participated in 22 deals. Meanwhile, US investors were the most bullish foreign investors in Mena startups, having backed 30 deals out of a total of 35 that saw direct foreign investment.
Sector-wise, logistics startups raised the most in February with $120 million, with Saudi Trukker's and Retailo leading the fundraise. Within logistics, Egypt's Milezmore, a cloud-based last mile delivery solutions provider, raised $5 million from its compatriot social commerce startup, Brimore.
Eight foodtech startups raised $74 million, thanks largely to Nana’s $50 million round for its quick commerce, e-grocery platform. Fintech continues to be an attractive target for investors as startups in the sector raised $67 million across 19 deals.
Startups founded by men raised 96 per cent of the $375 million last month, across 69 deals. Less than $4 million was invested in startups founded by women, while startups co-founded by men and women raised almost $11 million.
Last month, BithTV, Postpay, SiFi, NymCard, Nawah Scientific, Oro, along with startups that graduated from the TechStars Riyadh accelerator programme did not disclose the exact amount they raised. We assigned them a conservative amount of $100,000.
These monthly reports are a collaboration between Wamda and Digital Digest.