In October, startup funding in the Middle East and North Africa (MENA) region rose by 395 percent annually, reflecting continued investor confidence. However, the $784.9 million raised marked a 77 percent decline from September’s $3.5 billion peak. Debt financing dominated, making up 72 percent of the total with $567.8 million across four deals, while equity and other investments gathered $217 million. The figures suggest a growing dependency on debt capital, especially for late-stage and capital-intensive startups.
The UAE led funding efforts, securing $615.7 million from 15 deals, largely due to Property Finder’s $525 million debt raise. Saudi Arabia followed with $119.3 million from an equal number of transactions, and Egypt saw a significant recovery, raising $33.3 million from five deals, surpassing its third-quarter total. Morocco continued its momentum with $12.3 million from three rounds.
Property tech was the most funded sector, driven by Property Finder’s transaction, while Software-as-a-Service startups and a single game tech deal followed. Fintech, despite having the highest deal count, ranked ninth in value. Early-stage startups dominated with 32 rounds raising $95.2 million, while only one series B deal was recorded, indicating a slowdown in late-stage capital.
Business-to-consumer startups led in funding value, raising $594.7 million, compared to $166 million for business-to-business startups. Gender disparities widened as male-led startups captured 93 percent of the total funding, with female-founded ventures raising $4.5 million. Mixed-gender teams secured $51 million, highlighting ongoing gaps in capital access.
In startup news, Saudi fintech Stream raised $4 million in seed funding to enhance its billing and payments platform. Bonat, an AI-driven customer engagement platform, secured $6 million to boost AI product development and expand operations. Tunisian travel tech WildyNess closed a pre-seed round to support regional growth. Moroccan superapp ORA Technologies acquired Cathedis to strengthen its digital economy presence. Saudi q-commerce platform Doos received strategic investment from Jahez to expand its service offerings. Moroccan fintech Chari received investment from DisrupTech Ventures to support its regional expansion. Lastly, First Circle Capital raised $6 million from IFC to invest in early-stage fintech startups across Africa.
