MENA Region Sees Surge in Investments in May 2024
The volume of investments in the MENA region has experienced a significant evolution by the end of May 2024. Forty startups in the region have successfully raised $282 million in May, compared to $55 million in April. According to the report by Wamda and Digital Digest, this 413% increase is primarily due to debt financing, which accounts for nearly $140 million of the total amount. However, "on a year-over-year (YoY) basis, the investment volume has decreased by 58%, down from the $445 million reported in the same month last year for 39 transactions," according to Wamda.
UAE-based Startups Lead the Way
Startups based in the United Arab Emirates have acquired the majority of investments in the region, amassing $189 million across 23 transactions. Saudi Arabian startups ranked second, raising $56 million across 10 transactions, while Egyptian startups secured the third position, with $24.5 million distributed across four transactions, including $16 million allocated to OneOrder's Series A round, combining both debt and equity.
Proptech Sector Dominates Funding
In May, the proptech sector dominated funding with $167 million across 7 deals, despite the absence of Property Finder's agreement (recall that last month, proptech had secured $90 million). Next, fintech followed with $32.7 million distributed across 12 startups. SaaS startups raised $27 million across three transactions. Subsequently, three logistics-focused startups raised $25 million. Agritech also showed a rebound with $23 million, and e-commerce with $2 million.
Series A and Pre-Series A Funding
On the other hand, five startups raised $59.3 million in Series A funding, and four startups secured $44 million in pre-Series A funding. The seed phase recorded seven transactions totaling $11 million.
Gender Breakdown of Investments
Male founders obtained 89% of investments, but transactions for mixed-gender startups doubled, reaching $28.6 million, compared to $800,000 for startups founded by women.