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MENA startups raised $134 million in October 2024, a 52% MoM decline

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MENA startups raised $134 million in October 2024, a 52% MoM decline

The startup ecosystem in the Middle East and North Africa (MENA) region slowed down in October 2024, raising $134 million across 56 deals, a 52% month-on-month (MoM) decrease and 13% down from the same period last year.

In October, debt financing accounted for $28.4 million, a 21% of the total amount, with Ejari securing the largest ticket of the month with its $14.65 seed round.

Startups based in the UAE ranked first among the MENA ecosystem, raising $61.8 million across 15 deals, followed by Saudi entrepreneurs, who raised $50 million over 21 deals. Sakan's deal propelled Kuwait into third place, with the proptech scooping up $12 million of the $13.5 million secured by Kuwaiti entrepreneurs, with the remaining going to Krti's round.

The Egyptian ecosystem saw a drastic downturn last month, where eight startups managed to raise only $1.6 million, while Tunisian and Qatari startups held third and fourth spots, raising $3 million and $2.7 million, respectively.

While fintech had been the most financed sector for four months in a row this year, it fell to second place in October, with six startups raising $26.4 million, giving a chance to proptech, which received $38 million in investment over five transactions. The e-commerce industry followed with $14.6 million raised by four startups, while edtech came in fourth with seven startups raising $11 million.

Investors continue to favour early stage startups, with seed stage accounting for $40 million or 30% of the total investment amount raised last month, followed by Series A startups, which received $20 million across three deals. Nine startups raised $25.8 million without revealing their stage, while 12 startups at their pre-seed stage raised $15.5 million.

The business-to-consumer (B2C) model was the preferred model in October, attracting $83.8 million across 19 startups, compared to $42.4 million invested in 27 business-to-business (B2B) startups. Meanwhile, 10 startups operating both models obtained nearly $8 million.

October's pleasant surprise was the increase in the amount invested in female-founded firms, which totalled $10.5 million over four transactions. However, 31 startups founded by men raised $115 million, while $4 million were allocated to four startups co-founded by both men and women.

These monthly reports are a collaboration between Wamda and Digital Digest.

 

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