Startups in Mena raised $299 million in March 2022, bringing first quarter funding to $934 million

Startups in the Middle East and North Africa (Mena) region raised $299 million in 79 deals in March 2022, a 22 percent month-over-month decline but a 71 percent year-over-year increase. This brings the total amount raised in the first quarter of 2022 to $934

million, an increase of 38 percent compared to the same period last year.

In terms of deal value, the United Arab Emirates, Saudi Arabia and Egypt took the lead, accounting for 93 percent of the total amount raised in March.

More than half of the funding went to UAE startups thanks to fintech tabby’s $54 million Series A round and health tech startup Altibbi’s $44 million Series B round, though the latter now plans to move its headquarters to Saudi Arabia to fuel its future growth.

The increase in the amount of funding in Egypt is starting to show, where startups in the country raised the second highest amount of funding with $86.8 million, with fintechs Lucky and Khazna drawing $25 million and $38 million respectively. Meanwhile, Saudi Arabia-based startups raised the third-highest amount at $39.7 million.

Sector-wise, fintech continues to dominate investor interest, with $135 million raised, representing 45 percent of the total investment value. Fintech also saw the most deals, contributing 18 deals to the total deal count. This was followed by healthcare technology and logistics, which together attracted $83 million across 14 deals.

Most of the value of the financing was driven by later-stage investments. Of the $299 million raised, $182.6 million went to startups in the Series A and Series B stages. Meanwhile, Seed and pre-Seed deals dominated the funding landscape in terms of deal count. , while the average ticket size on Seed is currently $2 million.

Saudi Arabia-based investors were the most active, participating in 31 deals, followed by Egypt-based investors who participated in 20 deals. Investors in the US remain the most active foreign investors in the region, participating in 16 deals.

Male-founded startups accounted for 86 percent of the investment raised in March. Startups with both male and female co-founders fared better last month, attracting 12 percent of the $299 million, while female-founded startups received less than 1 percent.

Startups that did not disclose the exact amount they raised include Nakhla, IoT Kids, WaffarX, Chefaa, and PrintHub. We assign them a conservative amount of $100,000.

These monthly reports are a collaboration between Wamda and Digital Digest.

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