UAE-based foodtech startup, MealPlanet, has successfully secured a $6 million Seed round led by a consortium of prominent investors, including Middle East Venture Partners (MEVP), AlTouq Group, Sanabil 500, Faith Capital, and Alturki Ventures. Renowned entrepreneurs Marc Lore and Samih Toukan also participated in the funding round, underscoring the company's promising potential.

Founded in 2024 by seasoned entrepreneur Khalid Baareh, MealPlanet is disrupting the food industry by offering a comprehensive meal planning platform that connects consumers with a diverse range of meal options from trusted brands.

The app empowers users to effortlessly discover, subscribe to, and manage their meal plans, transforming the way people approach healthy and convenient eating.

The newly acquired capital will be instrumental in accelerating MealPlanet's growth trajectory. The company plans to invest in expanding its technology infrastructure, enhancing user experience, and bolstering its marketing efforts.

Furthermore, the funds will fuel its ambitious regional expansion strategy, with Saudi Arabia being the first target market for launch in the first quarter of 2025.

MealPlanet's partnership with over 100 renowned brands, including Prep & Co, Basiligo, PrepHero, and The Lean Co., among others, highlights its commitment to providing customers with a wide array of choices to cater to diverse dietary preferences and lifestyles.

The platform's focus on delivering convenience, variety, and flexibility has resonated with consumers, positioning MealPlanet as a frontrunner in the meal planning space.

Walid Mansour, co-founder and co-CEO of MEVP, expressed enthusiasm for MealPlanet's potential to revolutionize the meal planning market.

"The increasing demand for healthy and convenient food options presents a significant opportunity," he stated. "MealPlanet's innovative approach and dedicated team position them as a strong contender to lead this growing market. We are confident in their ability to deliver exceptional value to consumers and drive sustainable growth."

MealPlanet's success in securing substantial funding from leading investors is a testament to the company's innovative business model and strong market potential.

As the company expands its footprint and introduces its platform to new markets, it is poised to become a dominant player in the foodtech industry, shaping the future of meal planning and consumption.

Kuwait-based fintech startup, Kem, has successfully secured a $3 million investment from the digital asset behemoth, Tether. This strategic partnership marks a significant milestone for both companies, promising to reshape the regional payments landscape.

Founded in 2021, Kem has rapidly gained traction as a leading peer-to-peer (P2P) instant payment platform in Kuwait. Its innovative approach, which eliminates the need for traditional payment methods and relies on QR codes for seamless transactions, has resonated with consumers and businesses alike.

With this fresh infusion of capital, Kem is poised to expand its reach and solidify its position as a dominant player in the region's fintech ecosystem.

The collaboration between Kem and Tether is a strategic match made in fintech heaven. By combining Kem's expertise in real-time payments with Tether's commitment to expanding access to digital finance, the partnership aims to empower millions of people across the region with innovative and inclusive financial services.

This alliance is particularly significant in countries facing economic challenges, as it offers a potential lifeline for individuals and businesses seeking to mitigate the impact of hyperinflation and currency fluctuations.

For Tether, the investment in Kem represents a strategic foothold in the Middle Eastern market. As the largest company in the digital asset industry, Tether has been at the forefront of driving financial inclusion and stability.

By supporting Kem's growth, Tether is demonstrating its commitment to democratizing access to financial services and empowering individuals to protect their wealth.

The partnership also holds immense potential for Kuwait. The influx of foreign investment into the country's fintech sector is a positive indicator of its growing attractiveness as a destination for innovative businesses.

By fostering a thriving fintech ecosystem, Kuwait can position itself as a regional leader in financial technology and attract further investment.

Kem's founders, Seth Sadeq, Zane Chichua, and George Chichua, expressed their enthusiasm for the partnership, highlighting its potential to transform the Gulf region into a digital cash economy.

They envision a future where financial services are accessible to all, regardless of socioeconomic background.

As Tether continues to expand its global footprint and solidify its position as a dominant force in the digital asset industry, the partnership with Kem is a strategic move that aligns with the company's broader mission.

With its massive 24-hour trading volume and substantial treasury holdings, Tether is well-positioned to support Kem's growth and drive the adoption of digital currencies in the region.

The collaboration between Kem and Tether is undoubtedly a game-changer for the Middle East's fintech landscape. By combining their strengths and resources, the two companies are poised to revolutionize the way people and businesses transact, paving the way for a more inclusive and efficient financial future.

Saudi Arabia's restaurant industry is experiencing a meteoric rise, transforming the Kingdom into a coveted destination for global food and beverage brands.

A confluence of factors, including a burgeoning young population with a discerning palate, government-led economic diversification, and a burgeoning tourism sector, has propelled the industry into a period of unprecedented growth.

The Kingdom’s ambitious Vision 2030 initiative, aimed at reducing oil dependency and diversifying the economy, has created a fertile ground for investment in non-oil sectors, including hospitality and leisure.

As part of this strategy, Saudi Arabia is positioning itself as a global entertainment and tourism hub, a vision that is rapidly materializing.

The decision to host the 2034 FIFA World Cup has accelerated this trajectory, necessitating a significant expansion of the country’s hospitality infrastructure, including its culinary offerings.

The restaurant sector has responded enthusiastically to these developments. A burgeoning middle class with increasing disposable income, coupled with a growing appetite for international cuisines, has created a robust consumer base.

Point-of-sale data reveals a staggering 13.6% annual growth in restaurant and café spending, underscoring the sector’s dynamism.

Moreover, the government's proactive stance in creating a conducive business environment has been instrumental in attracting foreign investment.

Streamlined regulations and supportive policies have facilitated the entry of international brands, enriching the culinary landscape and elevating dining experiences for Saudi consumers.

As the Kingdom undergoes a rapid social and cultural transformation, the restaurant industry is at the forefront of this evolution. A new generation of Saudi consumers is increasingly exposed to global trends and demands diverse and innovative dining options. This shift in consumer preferences has prompted both local and international players to invest heavily in the market.

Looking ahead, the prospects for Saudi Arabia's restaurant sector are exceedingly bright. With a projected doubling of market size by 2030, the industry is poised to become a significant contributor to the Kingdom's GDP.

However, success will hinge on the ability of industry stakeholders to adapt to evolving consumer tastes, leverage technology to enhance customer experience, and ensure sustainability in operations.

In conclusion, Saudi Arabia's restaurant sector is undergoing a period of extraordinary growth, driven by a combination of economic, demographic, and cultural factors.

The Kingdom's strategic vision, coupled with a supportive regulatory environment, has created a compelling investment proposition for global food and beverage players.

As the industry continues to mature, it is expected to play a pivotal role in shaping Saudi Arabia's image as a global destination for tourism, leisure, and culinary excellence.

Egypt-based B2B e-commerce platform Cartona has successfully raised an additional $8.1 million in Series A extension funding, led by Algebra Ventures.

The investment, a combination of $5.6 million in equity and $2.5 million in debt, marks a significant milestone for the company as it accelerates its mission to digitize Egypt's traditional trade market.

Founded in 2019, Cartona has rapidly grown to connect over 188,000 retailers across 17 Egyptian cities with FMCG producers, wholesalers, and distributors.

The platform's innovative approach has disrupted the traditional supply chain by offering a digital marketplace that streamlines operations, improves efficiency, and enhances profitability for all stakeholders.

The newly acquired capital will fuel Cartona's expansion plans, enabling the company to solidify its position in the Egyptian market, explore new opportunities in the MENA region, and potentially venture into B2B2C services.

By investing in product development, marketing, and talent acquisition, Cartona aims to further enhance its platform's capabilities and deliver exceptional value to its customers.

A key differentiator for Cartona is its asset-light business model, which has allowed the company to achieve impressive growth while maintaining a lean cost structure.

This financial prudence has been particularly advantageous in navigating the challenges posed by inflationary pressures. Moreover, Cartona's commitment to financial inclusion is evident in its efforts to provide small retailers with access to credit and working capital through its platform.

Algebra Ventures, a leading Egyptian venture capital firm, expressed confidence in Cartona's potential to revolutionize the retail industry. Omar Khashaba, General Partner at Algebra Ventures, highlighted the company's strong financial performance, capital efficiency, and ability to adapt to market challenges.

The investment firm believes that Cartona's innovative approach and experienced leadership team position it for long-term success.

As Cartona continues to scale its operations and expand its reach, the company is poised to become a driving force in the transformation of Egypt's retail landscape.

By empowering retailers and suppliers with cutting-edge technology and financial solutions, Cartona is creating a more efficient, sustainable, and inclusive ecosystem for the entire industry.

Every ambitious business owner grapples with the question: Expand or stagnate? The answer is clear: Growth fuels success! Business expansion unlocks a treasure trove of benefits, from soaring market share and a loyal customer base to streamlined operations and cost reductions.

However, venturing into uncharted territory can be intimidating, especially without the right tools and strategies. A poorly managed expansion can spell disaster, especially for a struggling business.

This article equips you with the knowledge and strategies to navigate expansion successfully. Let's explore some of the most effective growth strategies and unlock the true potential of your business!

1. Market Penetration: Cultivating a Loyal Customer Base at Home

Market penetration focuses on maximizing sales of your existing products or services within your current market. Think of it as cultivating a thriving garden before planting new seeds in unexplored territories. Here are some key tactics to employ:

• Targeted Promotions: Dangle irresistible deals and loyalty programs to entice new customers. Limited-time offers or referral programs create a sense of urgency and drive first-time purchases.
• Marketing Blitz: Amp up brand awareness through strategic marketing campaigns. Utilize social media, search engines, or even traditional methods like billboards to reach a wider audience.
• Distribution Expansion: Make your offerings more accessible by partnering with new stores, online platforms, or delivery services. This broadens your reach and unlocks new sales potential.
• Product/Service Enhancements: Keep your existing customers engaged by continuously improving your products or services. This could involve offering new features, loyalty programs, or improved quality.

Benefits: Market penetration is a cost-effective strategy that leverages existing resources. It allows you to refine your offerings based on customer feedback and build a solid foundation for future growth. This approach is ideal for both new businesses establishing a market foothold and established businesses aiming to increase profitability.

2. Marketing & Promotion: Building Brand Advocates

A robust marketing and promotion strategy is the lifeblood of sustainable business growth. Here's how to cultivate a community of loyal brand advocates:

• Rewarding Loyalty Programs: Incentivize repeat business and foster a sense of community by offering points programs with exclusive rewards.
• Social Media Engagement: Become a social media powerhouse! Share engaging content, respond promptly to comments and messages, and run interactive contests to directly connect with your target audience.
• Compelling Content Creation: Position yourself as a thought leader by creating valuable content that educates, entertains, or inspires your target audience. This could consist of blog posts, informative videos, or insightful social media updates. Position yourself as a trusted resource and attract potential customers actively seeking solutions.

Benefits: A well-executed marketing and promotion strategy fosters brand loyalty, a key driver of sales growth. Loyal customers become unpaid advocates, spreading positive word-of-mouth and attracting new customers. This not only increases sales but also builds a strong brand image.

3. Expansion Into A New Market: Exploring New Horizons

Market expansion involves entering new markets or expanding your reach in existing ones. This strategy is ideal for businesses that have reached a plateau in their current market and are looking for new opportunities for growth. Here are some key considerations:

• Market Saturation: When your existing market becomes saturated, it's time to explore new territories.
• Expanding Products/Services: Market expansion often involves expanding your product or service offerings to cater to the new market's needs.
• Strong Foundation: Businesses with a strong customer base and brand identity are well-positioned to take advantage of new market opportunities.

4. Going Global with EOR Solutions

As your business matures, your domestic market might feel saturated. Expanding abroad unlocks a wealth of new potential customers, but navigating international HR and regulations can be daunting. This is where Employer of Record (EOR) solutions come in!

• Reduced Risk & Streamlined Operations: EORs handle HR and payroll in foreign countries, ensuring compliance with local labor laws. This eliminates the risk of legal infractions associated with overseas hiring and lets you focus on growing your business.
• Building Your Global Team: Hiring remote talent allows you to access a wider pool of skilled workers. EORs can simplify the process, helping you find, hire, and manage a qualified international workforce.

5. Franchise Your Business Model

Franchising offers a powerful tool for rapid expansion with minimal financial risk for you, the franchisor. Here's how it works:

• Faster Market Penetration: Franchisees finance and operate their own locations under your brand, accelerating your reach into new markets.
• Enhanced Brand Awareness: Franchisees invest in local marketing, boosting overall brand recognition and attracting customers to your business and all franchise locations.
• Standardized Operations & Quality Control: As the franchisor, you provide training and support to ensure consistent branding and quality standards across all franchises, leading to a positive customer experience and increased loyalty.

6. Strategic Partnerships: Joint Ventures & Acquisitions

Partnering with established businesses can unlock significant resources and accelerate your global expansion. Here are two common partnership models:

• Joint Ventures: Multiple businesses collaborate on a specific project or venture, combining their unique strengths and expertise. For example, a tech startup and a larger corporation could co-develop a new software product, leveraging the startup's technical skills and the corporation's market reach.
• Acquisitions: One business acquires another, gaining immediate access to the acquired company's customer base, brand reputation, industry expertise, and assets. This can be a fast-track approach to entering new markets or expanding your product and service offerings.

By implementing these strategies, you can overcome the challenges of international expansion and unlock the vast potential of the global marketplace. So, set your sights on the world and prepare to take your business to the next level!

The United Arab Emirates (UAE) has emerged as a leading destination for businesses looking to innovate, embrace AI, and thrive in an entrepreneurial environment. This surge in investor interest is reflected in the country's improved rankings on global business and investment attractiveness indexes.

The UAE actively fosters a business-friendly environment through a variety of incentives and streamlined processes:

1. 15-Minute Business Setup: Streamlined services through the Basher platform allow for quick and easy business registration, eliminating the need for multiple visits to government offices.

2. 100% Foreign Ownership: Following legal reforms, foreign investors can now fully own and establish companies throughout the UAE, without requiring a local Emirati partner.

3. 40+ Flexible Free Zones: The UAE boasts a wide range of free zones offering various benefits, including 100% foreign ownership and the freedom to choose the most suitable location for your business needs.

4. Diverse Investment Opportunities: With over 2,000 economic activities open for foreign investment, the UAE caters to a broad spectrum of industries, from trade and agriculture to technology and education.

5. Multiple Business Structures: The UAE offers various legal structures for companies, including public and private joint-stock companies, limited liability companies, and more.

6. No Local Agent Requirement: Foreign companies can now set up branches and operate in the UAE without the need for a local agent, simplifying the process and fostering transparency.

7. Full Control for Investors: Foreign investors have complete control over their company shares and board composition, with no mandatory Emirati involvement unless specified by law.

8. No Minimum Capital Requirement: Limited liability companies are not bound by a minimum capital requirement, offering greater flexibility for startups and entrepreneurs.

9. Tax-Free Environment: The UAE boasts a zero personal income tax rate and allows for full profit repatriation, making it an attractive location for maximizing returns.

10. Golden Residency Visas: The UAE offers long-term residency visas for investors, entrepreneurs, and skilled professionals, enabling them to establish businesses, live, and work in the country.

11. Access to Skilled Talent: The UAE's flexible labor policies and focus on fostering talent create an environment rich in skilled professionals across various sectors.

12. Low Trade Tariffs: With government tariffs ranging from 0 to 5%, the UAE is a global center for trade, ranking highly in both global and regional re-exports.

13. Industrial Sector Incentives: The UAE provides a comprehensive package of incentives for industrial and technology companies, including competitive financing, strategic tariffs, customs exemptions, and support programs.

By fostering innovation, offering ease of doing business, and providing a wealth of incentives, the UAE has cemented its position as a global hub for business and investment.

Dubai-based AI startup Sentient Labs has secured a whopping $85 million in seed funding, marking a significant stride towards its ambitious goal of democratizing artificial intelligence (AI) development.

This funding round, co-led by heavyweight venture capital firms like Founders Fund, Pantera Capital, and Framework Ventures, signifies the growing interest in fostering a more inclusive and collaborative AI ecosystem.

The influx of capital will allow Sentient Labs to accelerate the development of its open-source AI platform. This platform aims to break down barriers to entry in the field of AI development, making it more accessible to a wider range of contributors.

By leveraging blockchain technology, the platform incentivizes participation by rewarding those who contribute data, labeling tasks, and other critical aspects of training AI models. This fosters a collaborative environment where everyone benefits from the collective effort.

Founded in early 2024 by a team with a unique blend of expertise, Sentient Labs stands out from the crowd. Sandeep Nailwal, co-founder of Polygon Labs, brings his experience in blockchain technology, while Pramod Viswanath and Himanshu Tyagi contribute their academic backgrounds in AI research.

This combination positions Sentient Labs to bridge the gap between cutting-edge research and practical application.

Perhaps the most striking aspect of Sentient Labs' approach is its commitment to open-source development. In stark contrast to the closed-source or semi-closed models employed by tech giants like OpenAI, Google, and Meta, Sentient Labs champions transparency and fairness.

Their open-source platform allows anyone to contribute and benefit from the collective intelligence being built. This approach mitigates the risk of AI development being monopolized by a handful of large corporations, ensuring a more equitable distribution of the benefits of this transformative technology.

"We're not just another AI project," emphasizes co-founder Himanshu Tyagi. "We're building an open world through blockchain to achieve transparency and fairness.

When our AI is used, everyone who contributed will be rewarded through the blockchain protocol." This statement underscores Sentient Labs' commitment to building a future where AI development is a collaborative endeavor, driven by a shared vision of harnessing AI's potential for the betterment of humanity.

The substantial seed funding secured by Sentient Labs is a testament to the growing recognition that blockchain technology holds immense potential to revolutionize the way AI is developed and deployed.

This open-source approach has the power to democratize AI development, fostering a more inclusive and collaborative landscape where everyone can contribute and benefit from the advancements in artificial intelligence.

The winds of change are blowing through the deserts of Saudi Arabia, and with them comes a burgeoning sports industry beckoning for British investment.

Fueled by the transformative Vision 2030 plan, the Kingdom is witnessing a dramatic shift towards a more active and engaged population, with sports playing a central role in this cultural revolution.

This newfound passion, coupled with a projected market value of SAR84 billion (US$22.38 billion) by 2030, is painting a very attractive picture for investors from across the globe, particularly those in the UK.

A Market Poised for Takeoff:

The Saudi sports industry isn't just brimming with potential; it's already experiencing impressive growth. According to Mohammed El-Nemer, vice chairman of the Saudi British Joint Business Council, the sector enjoyed a remarkable 12% annual growth rate between 2018 and 2023.

This momentum was further underscored at the recent UK-Saudi Sports Investment and Innovation Forum held in London. Organized by the Saudi Chambers of Commerce and the Saudi British Joint Business Council, the event served as a platform to showcase the vast opportunities this burgeoning market has to offer.

A Nation Embraces a Healthy Lifestyle:

Basim Ibrahim, Director of Sports Sector Investment Development at the Ministry of Investment, shed light on the growing national obsession with sports and entertainment in Saudi Arabia. He revealed that a staggering 67% of the population actively participates in sports and video games, according to Turki Al-Fawzan, CEO of the Saudi Electronic Sports Federation.

This enthusiasm transcends demographics and age groups, creating a fertile ground for investment across various segments of the sports industry, from traditional sports facilities and equipment to the burgeoning world of esports.

Building Bridges Through Collaboration:

The UK-Saudi Sports Investment and Innovation Forum wasn't just about highlighting the investment potential. A key focus of the event was fostering collaboration between the UK and Saudi sports industries.

Representatives from both nations' sports and investment ministries, along with over 100 senior officials and investors, participated in fruitful discussions exploring avenues for:

• Joint ventures in organizing major sporting events: Imagine a scenario where British and Saudi expertise combine to create world-class sporting spectacles, attracting international audiences and boosting tourism in both countries.
  
  
• Strategic international mergers and acquisitions: The forum provided a platform for UK companies to explore potential partnerships and acquisitions within the Saudi sports landscape, allowing them to gain a foothold in this rapidly growing market.
  
  
• Developing cutting-edge sports technology and esports infrastructure: The rise of esports presents a lucrative opportunity, and the forum discussions aimed at identifying areas where UK expertise in technology and infrastructure development can be leveraged to propel the Saudi esports scene to even greater heights.
  
  
• Investing in programs that enhance the quality of life through sports: The forum acknowledged the positive social impact of sports, and discussions were held on potential collaborations in developing grassroots programs that promote health and well-being through sports participation across all segments of Saudi society.

A Once-in-a-Lifetime Opportunity:

The UK-Saudi Sports Investment and Innovation Forum sent a clear and resounding message: the Saudi sports industry is a goldmine waiting to be explored.

With a government actively seeking foreign investment, a passionate population eager to embrace an active lifestyle, and a market on a clear upward trajectory, the time for UK investors to seize this once-in-a-lifetime opportunity is now.

By forging strategic partnerships and leveraging their expertise, British companies can play a pivotal role in shaping the future of Saudi Arabia's dynamic sports landscape, while reaping significant rewards in the process.

June 2024 painted a mixed picture for MENA startup funding. While investment activity slowed down compared to May, with 38 tech startups securing a total of $116 million, the first half (H1) of the year closed strong at $882 million. This represents a notable year-over-year increase of 182%, showcasing sustained growth in the region's entrepreneurial ecosystem. However, a significant 59% decline from May's funding highlights a potential short-term slowdown.

Looking geographically, the United Arab Emirates (UAE) maintained its dominance, attracting $82.5 million across 15 deals. This demonstrates the UAE's continued attractiveness for investors and startups. Egypt's startup scene showed encouraging signs with four companies raising a combined $15 million, marking the second-highest total for the month. Saudi Arabia followed with $13.5 million from seven startups. Interestingly, Iraq also witnessed activity, with six startups securing an estimated $1.2 million, suggesting a potential emerging market within the MENA region.

Sector-wise, June saw a shift in leadership. Fintech reclaimed its position as the most funded sector, securing $38 million across 10 deals. This resurgence indicates continued investor confidence in the potential of financial technology solutions in the region. Construction technology (contech) followed closely, largely driven by a significant investment in Tenderd. Proptech, the previous leader in May, saw a cool-down with three startups raising $19.6 million. This month's funding distribution highlights the dynamic nature of investor focus within the MENA tech landscape.

Despite the pre-Series A funding round leading the way with $45 million across four deals, the overall picture points towards a strong focus on early-stage startups. Seed funding remains active with $27.3 million secured by five startups. Notably, even pre-seed ventures continue to attract attention, with eight startups garnering a combined $3 million and another eight receiving $140,000 in grants. This focus on early-stage companies suggests a healthy pipeline of innovative ideas emerging from the region.

The business-to-business (B2B) model dominated funding in June, raising a substantial $66.4 million across 18 deals. This represents a significant 74% of the total investment, showcasing the continued importance of B2B solutions in driving regional economic growth. Business-to-consumer (B2C) startups, although less prominent this month, still secured $49.5 million. However, a concerning gender gap persists. Male-founded startups received a staggering $103.4 million (89%) compared to a mere $200,000 secured by female-led ventures. This highlights the need for continued efforts to promote diversity and inclusion within the MENA startup scene.

Overall, June's funding activity in MENA presents a complex picture. While a short-term slowdown is evident, the H1 total paints a more optimistic picture. The strong performance of specific sectors, the focus on early-stage ventures, and the continued dominance of B2B models all indicate a promising future for MENA startups. However, addressing the gender gap remains a critical challenge for the region's entrepreneurial ecosystem to reach its full potential.

The first half of 2024 (H1) revealed a clear concentration of capital within the MENA startup landscape.

UAE Retains Top Spot, But Growth Slows

The United Arab Emirates (UAE) maintained its position as the region's funding leader. However, growth has slowed. 91 UAE-based startups raised a total of $455.5 million in H1 2024, down from $604 million secured in the same period last year.

Saudi Arabia Sees Similar Decline

Saudi Arabia (KSA) followed the UAE in terms of funding, attracting $300 million in H1 2024. This also represents a decrease compared to the $554 million secured in H1 2023.

Egypt's Ecosystem Feels the Squeeze

Despite significant investments flowing into Egypt's real estate and tourism sectors from Gulf Cooperation Council (GCC) countries, the nation's broader economic struggles have impacted its startup scene. A national debt exceeding 96% of GDP, high inflation (32.5%), and an energy crisis causing power outages have combined to create a challenging environment. Consequently, the Egyptian startup ecosystem witnessed a dramatic decline in H1 2024. Only 33 startups raised a combined $83 million, a staggering 80% drop compared to the same period in 2023.

Morocco Shows Signs of Promise

A bright spot emerges in Morocco, where the startup ecosystem is gaining momentum. Six Moroccan startups secured a total of $12.5 million in H1 2024, hinting at potential growth in the North African nation.

The first half of 2024 saw a fascinating shift in investor focus within the MENA startup landscape. Proptech, the sector concerned with innovating the real estate industry, emerged as the new darling, attracting a staggering $200 million across just 14 deals. This dethroned fintech, the previous leader, which secured a respectable $156 million but spread across 50 deals. This difference in deal count highlights a potential trend – investors might be placing larger bets on fewer, but potentially higher-impact proptech ventures.

Meanwhile, the software-as-a-service (SaaS) sector remained a consistent force, securing $164 million across 23 deals. This suggests a continued focus on cloud-based solutions that improve operational efficiency across various industries. E-commerce, however, experienced a significant decline, raising only $33.6 million in 19 transactions. This drop from $194 million in H1 2023 indicates a potential market correction or a shift in consumer behavior. Foodtech followed a similar downward trajectory, plummeting from $183 million in 2023 to a mere $24 million in H1 2024. This could be due to a number of factors, such as increased competition, saturation in certain food delivery niches, or changing consumer preferences towards dining out or home cooking. It will be interesting to see if these declines are temporary adjustments or represent a more long-term trend within the MENA tech ecosystem.

Early Stages Shine in H1 2024 Funding

The first half of 2024 witnessed a shift towards early-stage funding in the MENA startup ecosystem. Here's a breakdown of the key trends:

Debt Financing Takes a Backseat: Debt financing, which played a significant role in H1 2023 (39% of total funding), saw a noticeable decline this year, dropping to just 17%. This suggests investors might be adopting a more cautious approach or focusing on earlier-stage ventures with higher growth potential.

Series A Still Strong, But Seed Stage Steals the Show: While 17 Series A startups managed to raise a significant sum of $169 million, the real story lies in the Seed funding stage. A whopping 52 Seed rounds secured a total of $131 million. This surge in early-stage funding indicates a focus on nurturing promising startups from the ground up and potentially signals a robust pipeline of innovative ideas emerging from the region.

Pre-Series A Sees Mixed Signals: Pre-Series A startups received $96 million across 17 deals. However, it's important to note that Salla's pre-IPO round, a significant outlier, contributed $130 million on its own. Excluding this anomaly, pre-Series A funding might also be experiencing a slight slowdown.

Overall, the data points towards a clear preference for early-stage funding in H1 2024. Investors seem to be placing their bets on the potential of young startups, while debt financing plays a less prominent role compared to the previous year.

B2B Takes Center Stage, Gender Gap Persists

The first half of 2024 saw a clear shift in investor focus towards the business-to-business (B2B) sector. B2B startups secured a staggering $473 million across investments, marking a 153% increase compared to H1 2023. Conversely, the business-to-consumer (B2C) model witnessed a significant decline, raising only $356 million, down 64% year-over-year. This trend suggests a potential preference for ventures that address business needs and drive regional economic growth.

Funding Disparity for Female-Led Startups

A concerning disparity emerged in funding allocated to female-led startups. These ventures secured a mere $1.8 million across 15 deals in H1 2024, a sharp decline from the $6 million raised by 22 startups in the previous year. This highlights the ongoing challenge of fostering gender diversity within the MENA entrepreneurial ecosystem.

Investment Landscape: A Shift in Geography

Traditionally dominant players like the UAE experienced a shift in VC activity. Saudi Arabia-based VCs emerged as the top regional investors, contributing to a significant 60 deals in H1. They were followed by UAE VCs with 41 deals, and Egyptian VCs with 24 deals. This geographical shift indicates a potential diversification in investment strategies within the region.

Global Investors Take Notice

The MENA tech scene also attracted significant foreign investments. The US led the pack, injecting capital into 31 startups, followed by the UK with 19 rounds. This participation from established players showcases the growing global recognition of the potential within the MENA region.

Active Investors and a Cautiously Optimistic Future

Venture Capital firms like RZM Investment (Saudi Arabia) and Hope Ventures (Bahrain) emerged as the most active investors in H1 2024, participating in seven deals each. Several VC funds were also launched during this period, pledging billions of dollars towards MENA tech companies. While the first half witnessed a slowdown, it could be seen as a period of consolidation and strategic planning. The influx of new funds and potential diversification of investment portfolios based on global economic factors paints a cautiously optimistic picture for Q3 and beyond.