MENA Region Sees Significant Drop in Investments in April 2024
According to a report compiled in collaboration between Wamda and Digital Digest, investments in the Middle East and North Africa (MENA) region experienced a significant decline in April 2024. Only 19 startups managed to raise a total of $55 million, marking a staggering 78% drop compared to the previous month. However, these figures represent a notable 87% increase compared to the same period last year.
This downward trend appears to be a continuation of the slowdown observed during the first quarter of the year, with most venture capital firms adopting a more cautious approach to their investments.
The largest investment of the month went to Fortis, a fintech based in the United Arab Emirates, which managed to raise $20 million in its Series A round. Nevertheless, despite this breakthrough, investments in Saudi Arabia declined, while the United Arab Emirates and Egypt benefited from a significant share of the funding.
The fintech sector emerged as the most funded sector in April, followed by e-commerce and artificial intelligence. It's interesting to note that the majority of investments were directed towards advanced-stage startups, while the business-to-business (B2B) commercial model proved particularly attractive to investors.
Regarding ecosystem dynamics, Egyptian companies showed growing interest in the Saudi market, while new venture capital funds were launched, including the Jasoor Fund from Abu Dhabi and the pan-African venture capital fund from Verod-Kepple Africa Ventures.
Meanwhile, in the realm of mergers and acquisitions, Investcorp acquired the digital technology division of the Indian National Stock Exchange for $120 million, while Microsoft invested $1.5 billion in G42 to provide advanced artificial intelligence solutions.
Despite persistent challenges, the MENA startup ecosystem continues to attract investors' attention, with promising signs of growth and innovation in key sectors.
