- Startups in the MENA region secured a total funding of $86.5 million in January 2024.
- The UAE emerges as the top fundraising destination, with $47 million raised, featuring Tumodo’s $35 million pre-seed round.
- Despite the growth in overall funding, female-founded startups struggle, securing only a fraction of investments compared to their male counterparts
According to reports from Wamda and Digital Digest, startups in the MENA region secured a total funding of $86.5 million in January 2024.
In January, funding activity began with a modest raise of $86.5 million spread across 33 deals. This marks a 34 per cent decrease compared to the previous year. January usually witnesses a slower pace in funding announcements but is a key indicator of the year’s momentum.
The UAE reclaimed its position at the top of fundraising rankings, with 10 startups raising $47 million. Notably, Tumodo’s pre-seed round accounted for $35 million, marking the largest funding round of the month. In Saudi Arabia, 15 startups secured $11 million in funding, while Egypt displayed signs of recovery, raising $23 million across seven deals—up from $13 million in December and $4 million in January 2023.
In terms of sectors, Tumodo’s round propelled travel tech to the forefront, followed by fintech, which witnessed a slowdown with only five startups raising $12 million. Healthtech saw two startups raising $11 million, and three mobility startups secured over $5 million.
Most of the funding in January was directed towards pre-seed and Seed-stage startups, accounting for nearly $53 million of the total. B2B startups raised over $57 million across 14 deals, while B2C startups secured $28 million across 18 deals.
However, the funding landscape for female-founded startups remained dismal, with only one securing investment compared to 29 male-founded startups and three male and female co-founded companies.
Additionally, 14 startups opted not to disclose their funding amounts. For these, a conservative estimate of $100,000 each was assigned. These include Be Unique, Bosta, Cargo, Edura, Million, Mile Solutions, Nealthy, Samrise, Takado, TextTeo AI, Zaker, Cabrio. Meanwhile, Silkhaus and Clinicy were assigned $1 million each for their undisclosed rounds.
While January saw a decrease in funding compared to the previous year, notable rounds and diverse sector activity suggest potential for growth and momentum in the coming months.
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Last Updated on February 14, 2024 by Safiya K
