Investment Jumps 413% Month-over-Month

The Middle East and North Africa (MENA) startup ecosystem saw a significant increase in funding in May 2024. Startups raised a total of $282 million, a massive 413% jump compared to April's $55 million. This growth was driven by debt financing, which contributed nearly $140 million.

However, despite the impressive monthly growth, the total deal value dropped by 58% year-over-year from $445 million in May 2023.

UAE Leads in Investment, Proptech Takes Top Spot

The United Arab Emirates (UAE) attracted the most investment, with startups securing $189 million across 23 deals. Saudi Arabia followed with $56 million, and Egypt came in third with $24.5 million.

The proptech sector emerged as the leader in terms of funding, even excluding Property Finder's $90 million debt round. Proptech startups raised $167.2 million over seven deals. Fintech followed with $32.7 million, and logistics startups secured $25.3 million.

Later-Stage Funding Gains Traction

May witnessed a focus on later-stage funding rounds. Five startups raised $59.3 million in Series A rounds, and another four secured $44 million in pre-Series A rounds. Seed funding remained active with seven deals totaling $11 million.

B2C Model Dominates, Female Founders See Slight Increase

The business-to-consumer (B2C) model attracted the majority of funding, with startups raising $174 million across 13 deals. Business-to-business (B2B) startups secured nearly $100 million.

While male founders continued to dominate, attracting 89% of the total investment, May saw a rise in deals involving female co-founders. The number of deals doubled from April, securing $28.6 million. However, startups founded solely by women received only $800,000.

Active VC Landscape in the Region

May saw significant activity in the venture capital (VC) space. Several new funds were launched, with a focus on the Saudi ecosystem. These included a $100 million fund by BIM Ventures and Japan's SBI Holdings, a $250 million healthcare fund by TVM Capital Healthcare, and a $30 million commitment by Saudi Venture Capital to a US-based firm for investment in Saudi startups.

Investment firms from other regions also entered the MENA market. Singapore's Golden Gate Ventures launched a $100 million MENA fund, while Bahrain's Investcorp closed a $570 million fund and Shorooq Partners partnered with Korea's IMMG for a $100 million fund.

Saudi Arabia's Kingdom Holding Invests in Global AI Startup

It's noteworthy that Saudi Arabia's Kingdom Holding participated in a $6 billion Series B round for Elon Musk's artificial intelligence (AI) startup, xAI.

Investment Jumps 413% Month-over-Month

The Middle East and North Africa (MENA) startup ecosystem saw a significant increase in funding in May 2024. Startups raised a total of $282 million, a massive 413% jump compared to April's $55 million. This growth was driven by debt financing, which contributed nearly $140 million.

However, despite the impressive monthly growth, the total deal value dropped by 58% year-over-year from $445 million in May 2023.

UAE Leads in Investment, Proptech Takes Top Spot

The United Arab Emirates (UAE) attracted the most investment, with startups securing $189 million across 23 deals. Saudi Arabia followed with $56 million, and Egypt came in third with $24.5 million.

The proptech sector emerged as the leader in terms of funding, even excluding Property Finder's $90 million debt round. Proptech startups raised $167.2 million over seven deals. Fintech followed with $32.7 million, and logistics startups secured $25.3 million.

Later-Stage Funding Gains Traction

May witnessed a focus on later-stage funding rounds. Five startups raised $59.3 million in Series A rounds, and another four secured $44 million in pre-Series A rounds. Seed funding remained active with seven deals totaling $11 million.

B2C Model Dominates, Female Founders See Slight Increase

The business-to-consumer (B2C) model attracted the majority of funding, with startups raising $174 million across 13 deals. Business-to-business (B2B) startups secured nearly $100 million.

While male founders continued to dominate, attracting 89% of the total investment, May saw a rise in deals involving female co-founders. The number of deals doubled from April, securing $28.6 million. However, startups founded solely by women received only $800,000.

Active VC Landscape in the Region

May saw significant activity in the venture capital (VC) space. Several new funds were launched, with a focus on the Saudi ecosystem. These included a $100 million fund by BIM Ventures and Japan's SBI Holdings, a $250 million healthcare fund by TVM Capital Healthcare, and a $30 million commitment by Saudi Venture Capital to a US-based firm for investment in Saudi startups.

Investment firms from other regions also entered the MENA market. Singapore's Golden Gate Ventures launched a $100 million MENA fund, while Bahrain's Investcorp closed a $570 million fund and Shorooq Partners partnered with Korea's IMMG for a $100 million fund.

Saudi Arabia's Kingdom Holding Invests in Global AI Startup

It's noteworthy that Saudi Arabia's Kingdom Holding participated in a $6 billion Series B round for Elon Musk's artificial intelligence (AI) startup, xAI.

Maalexi, a UAE-based fintech company revolutionizing cross-border trade for the agriculture sector, has secured a crucial $1 million venture debt investment from Stride Ventures.

This marks a milestone for both companies – Maalexi gaining a strategic financial boost and Stride Ventures making their first venture debt foray into the promising GCC region.

Established in 2021 by Dr. Azam Pasha and Rohit Majhi, Maalexi empowers small and medium-sized enterprises (SMEs) in the food and agriculture industries to tap into the global market with confidence.

Their innovative platform tackles a major pain point – the complexities and risks associated with cross-border trade. Maalexi's dynamic risk management system equips SMEs with the necessary tools, including digital contracts, AI-powered inspections, and secure blockchain documentation.

This empowers them to source food supplies from international producers and exporters faster, cheaper, and with greater peace of mind.

The $1 million investment from Stride Ventures serves as a significant growth catalyst for Maalexi. Dr. Pasha, the company's CEO, has outlined plans to leverage the funds to strengthen their user acquisition efforts and scale their operations.

A key area of focus will be the deployment of cutting-edge technological solutions to optimize the movement of goods through their network of local and international warehouses and carriers.

This focus on streamlining logistics will further mitigate the inherent risks associated with international trade, ensuring a smoother flow of essential food products.

But the benefits extend beyond immediate operational improvements. The capital injection positions Maalexi strategically to secure further debt financing in the future.

This additional financial muscle will empower them to expand their reach and services, ultimately contributing to bolstering food security across the UAE and the broader GCC region.

For Stride Ventures, the Maalexi investment aligns perfectly with their mission to champion innovation in emerging markets. Apoorva Sharma, Managing Partner at Stride Ventures, highlighted Maalexi's use of technology to disrupt the $3 trillion global food trade as a key factor in their decision.

This collaboration not only strengthens Stride Ventures' presence within Hub71, Abu Dhabi's thriving tech hub, but also underscores their growing influence as a global investor with a keen eye for high-growth companies in developing economies.

By empowering Maalexi, Stride Ventures is not just making a financial bet, but also investing in a future where secure and efficient cross-border food trade empowers businesses and fosters regional food security.

Egyptian EdTech startup El Kheta has received a significant investment of $400,000 from EdVentures, the venture capital arm of Nahdet Misr Group.

This funding strengthens El Kheta's position in the Egyptian education landscape, allowing them to expand their reach and personalize learning experiences for students across the country.

Founded in 2019, El Kheta's platform provides a unique and flexible learning environment. Students can tailor their curriculum by selecting specific subjects or areas they want to focus on.

This approach caters to individual learning styles and allows students to create personalized study plans that address their academic strengths and weaknesses. El Kheta's comprehensive resources go beyond just textbooks.

They offer reinforcement lessons to solidify understanding of complex topics, along with practice exams aligned with the latest Egyptian curriculum.

Interactive educational videos and engaging homework assignments further enhance the learning experience. Additionally, the platform facilitates direct communication between students and teachers, enabling personalized support and guidance.

EdVentures, the Middle East's first venture capital firm dedicated solely to EdTech, recognizes the transformative potential of El Kheta's approach.

This investment aligns with EdVentures' mission to empower educational technology in Egypt and the Arab region. By supporting El Kheta, they aim to bridge the gap in access to quality education and create a more inclusive learning environment for students in Egypt.

Dalia Ibrahim, Founder and Chairwoman of Nahdet Misr for Entrepreneurship EdVentures, expressed her enthusiasm about the partnership. She believes El Kheta's innovative platform has the potential to revolutionize online education in Egypt, particularly for school students.

EdVentures is committed to supporting El Kheta's vision of creating a better and easier learning experience for all students. This collaboration between EdVentures and El Kheta signifies a positive step towards achieving greater educational equity and fostering a new era of personalized learning in Egypt.

MDD Saudi Arabia, a company specializing in supply chain and procurement management, announced the closure of a Series A investment round without disclosing the specific financial value.

The company stated that the investment was made by an individual investor, with 5% of the company’s shares sold at a valuation exceeding 100 million Riyals.

Founded in Riyadh in mid-2019, MDD aims to provide solutions for challenges in the business sector’s supply chain and procurement market.

The company integrates financial technology with supply chain and procurement management, covering the entire process from order initiation to financing, sourcing, and payment, through its “OFSP” methodology.

MDD also mentioned that it had previously received preliminary approval for its business model from the Saudi Central Bank (SAMA) and is striving to bridge current gaps in the sector, particularly those related to financing.

Source: Entarabi

UAE-based proptech Keyper has raised $4 million in equity in a pre-Series A round, led by BECO Capital and Middle East Venture Partners (MEVP), with participation from existing investors Vivium Holding, Jabbar Group, Signature Developers, and new investors Annex Investments, Pin Investment, and Al Qahtani Investment, among other angels.

The company has also received an additional $30 million in Shariah-compliant Sukuk financing from global asset manager Franklin Templeton Investments (ME) Ltd., bringing its cumulative capital raised to-date to over $40 million.

Founded by Omar Abu Innab and Walid Shihabi in 2022, Keyper offers a property management platform where tenants can track their expenses and charge online, and investors get real estate portfolios and access to data-driven insights.

Keyper will invest the fresh funds into digitising the rental experience in the UAE and scaling its innovative Rent Now, Pay Later (RNPL) solution.

Last October, Keyper raised a $6.5 million Seed round.

Press release:

Leading UAE Prop-Tech company, Keyper, announces a pre-series A capital raise of $4 million in equity. This round was led by top regional venture capital firms BECO Capital and Middle East Venture Partners (MEVP), with participation from existing investors; Vivium Holding, Jabbar Group, Signature Developers, and new investors; Annex Investments, Pin Investment, and Al Qahtani Investment, among other strategic angels.

The company also signed a term sheet agreement for an additional $30 million in Shariah-compliant Sukuk financing from global asset manager Franklin Templeton Investments (ME) Ltd., bringing its cumulative capital raised to-date to over $40 million. Keyper will invest the fresh funds into digitising the rental experience in the UAE and scaling its innovative Rent Now, Pay Later (RNPL) solution. The Sukuk proceeds will enable landlords to receive annual rents upfront and offer tenants the flexibility of paying rent in monthly instalments via credit/debit cards and other convenient digital payment methods.

Omar Abu Innab, Co-Founder and CEO of Keyper, expressed, "Keyper is transforming what it means to interact with real estate in the UAE. For Landlords, we offer a convenient property ownership experience, thanks to our property management application and innovative financial services, such as giving Landlords the ability to access their entire portfolio rental income at any point during the lease. For Tenants, they can have a fully digital experience to pay their rent monthly and manage their tenancy, eradicating the need for upfront payments via outdated bank checks.”

Keyper achieved significant milestones in 2024, including onboarding more than 3,000 residential units worth $2 billion, processing over $10 million in annual rent payments, and deploying over $1 million in annual rent facilitation through its RNPL product. As part of its push to improve property ownership & rental experiences, Keyper has already launched innovative features such as “similar transactions” that allow landlords to keep track of market sales and rental transactions relevant to their portfolio.

Dany Farha, Co-Founder and CEO of BECO Capital, says, “We are very excited to back a strong team, with diverse and deep domain expertise at the intersection of real estate and finance, innovating in the prop-tech sector on the global stage, and working very hard to find ways to offer a transformational value proposition to its customers in an efficient and profitable manner, which aligns perfectly with our thesis on both prop-tech and embedded finance that has many of the most desirable attributes that we seek.”

Mohieddine Kronfol, CIO of Global Sukuk and MENA Fixed Income at Franklin Templeton, “We are pleased to enter into an understanding to solely lead Keyper’s innovative multi-tranche sukuk to fund its RNPL service, which simultaneously complements our global sukuk and private market strategies,” said Mohieddine Kronfol. “Once concluded, the transaction will further highlight the exciting opportunities our private credit team sees across the region."

As to what’s next, Keyper plans to further disrupt real estate with cutting-edge financial & rental solutions, to make rent processing and payments seamless, flexible, and digital, and expand its services to Abu Dhabi. The company is also advancing partnerships in fintech, payments, tenant screening, and strengthening data collaborations with real estate entities and regulators.

Keyper's commitment to disrupting the rental process continues to have a significant impact on both landlords and tenants, reinforcing its position as an innovation leader in the real estate sector.

Source: Wamda

Residential unit deliveries already picking up, according to new report

Dubai’s residential property deliveries have picked up in recent months, with thousands of units already completed during the first three months of the year, according to new research.

From January to March 2024, the market saw the delivery of approximately 6,500 homes, which were mostly apartments, a report from real estate consultancy Land  Sterling noted.

By year-end, total deliveries will reach around 64,400 residential units, exceeding the previous year’s number of completed properties, the Q1 2024 Dubai Property Watch report noted.

During the first quarter of the year, apartments accounted for 75% of the project completions, while villas comprised 25%. The amount of residential unit deliveries in recent months reflects Dubai’s “continued appeal as a real estate investment hub”, the report noted.

“The first quarter of 2024 has been a period of robust activity for Dubai’s residential sector. The strong increase in new unit deliveries… underscores the market’s resilience and the sustained demand for high-quality residential properties,” noted Edward Sanders, Managing Director of Land Sterling.

Highest handovers

During the first quarter, the areas with the highest number of property handovers were Meydan One in Mohammed Bin Rashid (MBR) City, Jumeirah Village Circle (JVC) and Al Furjan.

It is estimated that approximately half of the upcoming supply will be turned over to buyers within the year, Land Sterling said.

The majority of future handovers are anticipated in MBR City, JVC, Damac Lagoons and Business Bay, with 70% of the future supply expected to be apartments and 30% villas.

Demand for properties also remained strong, with the first quarter of the year recording more than 35,300 sales transactions worth around AED 88.8 billion ($24.17 billion), up by 20.5% year-on-year in terms of volume and 24.1% in value.

Source: Zawya

Market access is key for any growing business in a competitive business landscape.

However, for small businesses, expanding market access and growing their customer base can be difficult, especially when there are large clients to be serviced.

The small business sector is a critical part of any country’s successful economy.

However, in South Africa, small businesses tend to struggle with a high failure rate. In fact, South Africa has one of the highest SMME failure rates globally.

A University of Stellenbosch Business School study found that there are multiple reasons for this, including a lack of proper management capacity and training, a lack of proper financial management skills, a lack of access to sustainable financial assistance; an inadequate understanding of the industry in which the business operates; and a lack of entrepreneurial networks to share resources and information.

Furthermore, South African consumers and corporates are not particularly renowned for their support of small businesses when compared with other regions.

There are however many reasons for the high failure rate of small businesses, agrees Catherine Wijnberg, founder and CEO of Fetola.

“In our experience as a business growth agency, the most common reason is that many businesses are simply not yet market-ready. While there is often a desire to onboard a big client, in reality, the business may not be in a position to service that client.

“Other reasons for a small market or ailing to grow its customer base is that its product quality might not be good enough, it could be targeting the wrong customers, using inappropriate marketing channels to reach its intended target market, or making it too difficult for customers to order and buy from them.”

“When it comes to market access, most small businesses have not yet cracked the secret to success. Businesses tend to blame the fact that nobody is buying from them and to be fair, as a country we don’t have a culture of supporting small businesses.

However, more often than not, the reason nobody is buying from these small businesses is that their product or service quality, capacity and value for money does not meet the needs of their customer,” says Wijnberg.

Expanding a business’s customer base to service larger clients can come with its own challenges, she points out.

“For example, does the business have sufficient resources to service larger clients? Small businesses need guidance to understand what clients are looking for from new suppliers. Critically, corporates and multinationals require a pipeline of reliable suppliers. An unreliable supplier is unlikely to receive repeat business.”

Key to the success of any small business, she says, is to know who your target market is and to ensure a suitable product market fit.

“Identify what your niche is and then decide how you can own that niche,” she advises.

“Other questions you should be asking is whether your brand is visible to the right target market; is your product or service of sufficiently high quality and does the quality justify the price you are charging; and can you guarantee reliable and consistent delivery?”

In fact, says Wijnberg, reliability is arguably the most important element of any supplier relationship.

“From a corporate perspective, there is a huge risk in buying from a supplier that is not reliable.”

The challenge, she adds, is that there is often a mismatch between what corporates expect from their small business suppliers and what small businesses understand as their responsibility to provide.

“Corporates and large retailers often miss the fact that they really need to explain and communicate to new small business suppliers in very clear terms what their expectations are.”

To help address the biggest challenges small businesses face – market access and access to growth finance - Fetola are launching a programme in July aimed specifically at youth businesses and focusing on market readiness as a route to market access, and investment readiness as a route to access growth finance.

"When small businesses get it right - with the correct strategy to build solid trade relations and partnerships - the results can be transformative," concludes Wijnberg.

Source: Zawya

PepsiCo, SABIC, and AstroLabs have unveiled the names of the eight startups selected to participate in the Mega Green initiative in the Middle East and North Africa (MENA) region.

The initiative aims to support young entrepreneurs and develop innovative solutions to address sustainability challenges in the region.

These startups are distinguished by offering innovative solutions in the fields of agriculture, water, and energy, which contributes to driving the circular economy, supporting the transition to clean energy, and mitigating the effects of climate change.

Over the next six months, the selected startups will receive support and guidance from experienced industry experts, as well as the opportunity to work with market players to expand their solutions.

By the end of the program, one company will win a cash prize of $30,000 to enable it to continue to grow and thrive.

The selected startups:

• Viridia Tech-Egypt: Provides a large-scale crop analysis platform to help agricultural companies improve productivity, profitability, and adopt better sustainable practices.
• P-VITA-Egypt: A biotechnology center specialized in producing natural raw materials for the cosmetics, food, and beverage industries. The company uses artificial intelligence and Internet of Things (IoT) technologies to automate operations, which reduces the carbon footprint.
• Mrüna-Flexibility-UAE: A consulting and distribution company working on developing innovative civil solutions.
• The Surpluss-UAE: A climate tech startup that helps SMEs reduce greenhouse gas emissions in a profitable way by sharing resources through digital sustainability service exchange.
• Mirai Solar-Saudi Arabia: A startup working in solar energy technologies, specializing in expanding the uses of solar energy beyond traditional applications, aiming to improve energy efficiency in food production operations, smart buildings, and support sustainable future building.
• AHYA TECHNOLOGIES-Saudi Arabia: A climate software and AI startup working on building a unified platform to scale up climate action in the MENA and Pakistan region.
• YY ReGen-Lebanon: Specializes in providing innovative solutions to support renewable energy use, sustainable water management, and support for renewable agricultural practices.
• Kumulus-Tunisia: A startup working in water technology, using innovative machines to generate water in the atmosphere, helping to convert air into fresh water. The company aims to contribute to providing drinking water in a sustainable, convenient, and cost-effective way for hotels and businesses across the MENA and Southern Europe regions.

The importance of the Mega Green initiative:

• Supporting young entrepreneurs and developing innovative solutions to address sustainability challenges in the region.
• Providing a platform for startups to showcase their solutions and connect with market players.
• Helping startups grow and thrive through funding and mentorship.

The Mega Green initiative is a significant example of the commitment of large companies to supporting sustainability in the region. By supporting young entrepreneurs, we can ensure a more sustainable future for generations to come.

In today's competitive business environment, profitability plays a critical role in a company's long-term success. While maximizing profits is a common goal, achieving it requires a balanced approach that considers both revenue growth and cost management.

Beyond Just Numbers: A Holistic View of Profitability

Profitability is more than just a high revenue number. It encompasses efficient operations, effective cost management, and delivering customer value. Businesses that adopt a comprehensive strategy focused on these areas are better positioned to navigate a dynamic market and achieve sustainable growth.

The Importance of Profitability

Profitability is the lifeblood of a business. It allows companies to reinvest in operations, expand their reach, and create value for stakeholders. Additionally, strong profitability serves as a key indicator of a company's financial health and competitiveness.

Understanding Profit Margins: Key Metrics

• Gross Profit Margin: This metric measures the profitability of a company's core operations by calculating the percentage of revenue remaining after accounting for the cost of goods sold (COGS). A high gross profit margin indicates efficient production cost management and effective pricing strategies.
  
  
• Net Profit Margin: This metric provides a more comprehensive picture of profitability by factoring in all expenses, including operating costs, taxes, and interest. A healthy net profit margin demonstrates a company's ability to generate sufficient profit to cover expenses and deliver returns to investors.

• Cost Reduction Techniques: Implementing strategies like streamlining operations, negotiating better deals with suppliers, and optimizing resource allocation can significantly reduce expenses and improve a company's bottom line. By identifying and eliminating inefficiencies, businesses can enhance profitability and gain a competitive edge.

• Pricing Approaches: Pricing plays a significant role in profitability. Businesses can explore options like dynamic pricing models, product and service bundling, and strategic discounts to attract customers and increase sales. Analyzing market demand and competitor pricing can inform pricing decisions to capture value and potentially increase profitability.
  
  
• Sales and Revenue Generation: Driving sales and revenue is crucial. Businesses can consider expanding their customer base, launching new offerings, or entering new markets to generate additional revenue streams. Diversifying revenue sources and capitalizing on market opportunities can potentially enhance profitability.
  
  
• Customer Retention Strategies: Retaining customers is key for long-term financial health. Building strong customer relationships can foster loyalty, encourage repeat business, and generate positive word-of-mouth referrals. Investments in customer satisfaction and retention strategies may lead to sustainable revenue growth and profitability.
  
  
• Technology for Operational Efficiency: Technology can be leveraged to automate processes, analyze data, and improve operational efficiency. Utilizing technologies like artificial intelligence, data analytics, and cloud computing may help businesses optimize performance, potentially reduce costs, and contribute to profitability.
  
  
• Investing in Human Capital: Employees are valuable assets. Investing in training and development programs can enhance employee skills, productivity, and job satisfaction. Engaged and well-trained employees are more likely to deliver exceptional customer service, drive innovation, and contribute to overall financial health.
  
  
• Financial Performance Measurement: Regularly monitoring and analyzing financial performance is vital. Businesses should track key financial metrics, conduct variance analysis, and prepare accurate financial reports to assess profitability and identify areas for improvement. Data-driven decision-making based on financial insights can help businesses optimize operations and potentially maximize profits.
  
  
• Inventory Management Practices: Effective inventory management is crucial for cost control and profitability. Optimizing inventory levels, reducing carrying costs, and implementing just-in-time systems can minimize waste, improve cash flow, and potentially enhance profitability. Streamlining inventory processes and leveraging technology can contribute to operational efficiency and profitability.
  
  
• Growth and Diversification Strategies: Exploring diversification and expansion opportunities can open new revenue streams and drive profit growth. Businesses can consider entering new markets, launching complementary products or services, or forming strategic partnerships to expand their reach and capitalize on emerging trends. Diversification can potentially help businesses mitigate risks, seize growth opportunities, and enhance their competitive position in the market.
  
  
• Building Strategic Collaborations: Collaborating with strategic partners and alliances can create synergies, unlock new opportunities, and potentially drive profitability. Forming mutually beneficial partnerships with suppliers, distributors, or industry peers can grant businesses access to new markets, shared resources, and expertise to achieve common goals. Strong collaborations may enhance competitiveness, innovation, and profitability.
  
  
• Adapting to Market Dynamics: Staying attuned to market trends and consumer behavior is essential for business health. Businesses should conduct market research, analyze consumer preferences, and anticipate industry shifts to align their products and services with market demand. Adapting to changing trends and consumer needs can help businesses stay relevant, attract customers, and potentially drive profitability.
  
  
• Integrating Sustainability and Social Responsibility: Embracing sustainability and corporate social responsibility (CSR) practices can enhance a business's reputation, attract socially conscious consumers, and contribute to long-term profitability. By integrating sustainable practices into their operations (e.g., reducing carbon footprint, supporting community initiatives, promoting ethical sourcing), businesses can create value, build trust, and differentiate themselves in the market.
  
  
• Driving Continuous Improvement and Innovation: Continuous improvement and innovation are key drivers of long-term success. Businesses should foster a culture of creativity, experimentation, and learning to stay ahead of the competition and meet evolving customer needs. Encouraging innovation, adopting agile practices, and embracing change can drive growth, enhance competitiveness, and potentially maximize profits in the long run.

Achieving Sustainable Growth
Maximizing profits and achieving success require a strategic and holistic approach that encompasses operational efficiency, customer satisfaction, innovation, and financial management. By implementing effective strategies, leveraging technology, and fostering a culture of continuous improvement, businesses can not only enhance their profitability but also achieve sustainable growth and competitiveness in today's dynamic business landscape.

Sharp Decline Raises Concerns for Ecosystem

Startup investment in the MENA region took a hit in April 2024. Only $55 million was raised by 19 startups, a concerning 78% drop from March's total. This suggests lingering caution from VCs after a weak first quarter. While the year-over-year increase of 87% offers a glimmer of hope, it's overshadowed by the immediate funding slump.

Fintech Shines, But Later Stages Dominate

The lone bright spot was UAE-based fintech company Fortis, which secured $20 million in a Series A round. Fintech led the way in terms of funded sectors, but the overall investment picture remained bleak. The funding primarily went to later-stage startups, highlighting a potential risk aversion towards early-stage ventures.

Investment Geographically Skewed, B2B Takes Priority

Investment in Saudi Arabia dropped significantly, with only three startups receiving funding. The UAE and Egypt fared slightly better, but the overall climate was cautious. Notably, investors showed a strong preference for B2B models, which attracted considerably more funding compared to B2C models. This focus on established business models suggests a wait-and-see approach from VCs.

Gender Gap Remains a Stark Reality

Disappointingly, only one female-founded startup secured funding in April. This persistent lack of investment in female-led ventures highlights the need for significant improvement in fostering inclusivity within the MENA ecosystem.

Collaboration Efforts Offer a Lifeline

Despite the funding decline, some positive developments emerged. The VMS Bridge program aims to connect Egyptian and Saudi startups, fostering collaboration across borders. However, these initiatives are in their early stages and their impact on the overall funding landscape remains uncertain.

While new VC funds were launched in April, the focus remains on established companies. The acquisition of NSEIT and the investment in G42 are positive signs for the broader MENA tech landscape, but they don't directly address the funding challenges faced by startups.

April's funding figures paint a picture of a struggling MENA startup ecosystem. The significant drop and the focus on later-stage ventures raise concerns about the health of the region's early-stage funding environment. Collaboration efforts and continued investor interest offer some hope, but significant challenges remain before the MENA startup scene can regain its momentum.