Startups operating in the MENA region have reportedly secured over $250 million in capital during March 2024, according to an update shared by local sources.
To be precise, MENA startups acquired $254 million across 54 different deals, which is up considerably by 186% MoM from February’s figures of $88.7 million and 1.17% YoY from the $251 million acquired back in March of last year. This, according to monthly reports prepared by Wamda along with Digital Digest.
As stated in the update, March saw a sharp rise in overall investment activity, thus reversing the downward momentum from January and February 2024.
As reported by local sources, MENA region startups have now raised $429 million during Q1 of this year via 129 investment rounds.
But the sector still has not reached levels from previous financial periods, as the overall investment is still over 60% lower than during the same quarter from 2023.
According to the report, most of the capital raised was channeled into software as a service (SaaS) firms, netting $130.6 million across 9 deals. This notably surpassed funding allocated to fintechs, which attracted only $40 million as part of 12 separate deal, meanwhile, four digital commerce initiatives bagged a total of $18 million.
According to the MENA region startup report, one of the most prominent developments is the downtrend in funds channeled towards the B2C model, which netted $48 million or less thatn 20% of aggregate investment totals.
Meanwhile the B2B ecosystem attracted most of the money with $188 million, representing nearly three-fourths (74%) of the overall rounds.
The report added that last month saw a number of key mergers and acquisitions deals, such as the MBC Group acquisition of a sizable stake in Anghami as well as Egypt’s MNT-Halan acquiring Pakistan based Advans Microfinance Bank.
During the past decade, the MENA region has emerged as one of the most prominent Fintech and business hubs in the world. While the majority of the revenue generated by Middle Eastern nations like Saudi Arabia have come from their vast oil reserves, the area’s leaders have realized the importance of diversifying their regional economies.
The UAE, Qatar, and KSA have been making considerable investments into developing major infrastructure to enable the fast-paced digital economy. Countries like Kuwait have also made key moves that will further diversify the area’s economy along with maintaining some of the world’s largest sovereign wealth funds.
The Middle East has also made strategic collaborations via the Abraham Accords so that the wider region including Israel can play a key role in advancing their respective economic development. Platforms like OurCrowd have also served a key role in elevating the region’s financial stability and overall business / startup development.