Latest news with #Magnitt
Zawya
29-07-2025
- Business
- Zawya
MENA private equity deals fall 38% in H1 as risk aversion weighs
Risk aversion impacted MENA private equity deals, with transactions falling 38% year-on-year to 29 in the first half of 2025, the third such consecutive half-year fall. The total value of MENA private equity deals also declined 11% YoY to $2.88 billion, indicating a shift towards strategic recalibration, as capital consolidated around fewer, high-value investments, according to data firm Magnitt. Private equity deals peaked in 2022 with 102 transactions and $8.33 billion in deal value, before declining in 2023 and 2024. Farah El Nahlawi, Research Department Manager at Magnitt, attributed the decline to a more 'selective deployment approach', as General Partners shifted focus to backing 'scale-ready platforms with stronger fundamentals'. 'With exit pathways uncertain and LPs [Limited Partners] cautious, capital is reserved for mature, de-risked assets,' El Nahlawi told Zawya. 'This comes in line with a rise in $100 million plus deals and the decline in volume. Firms are targeting scalable companies with proven models, prioritising control and visibility over early growth bets.' The MENA region's PE recalibration is being led by scale-ready SMEs and high-conviction strategies, not withdrawal. 'After a couple of years in the market, many SMEs across the region are no longer early-stage. They're scaling organically, becoming profitable, and showing clearer value creation plans. That growth is attracting naturally larger ticket sizes as investors back more established, platform-ready businesses,' El Nahlawi said. MENA figures were aligned with global trends where investments are being made into high-value, control-oriented transactions. According to S&P Global, global deal value rose 18.7% YoY in H1'25, despite a 6% drop in transactions. Saudi leads With 13 transactions, Saudi Arabia led the region in PE deal count, up 8% YoY and accounting for 45% of MENA's total, reflecting sustained local investor engagement, Magnitt said. Although, in terms of deal value, Saudi had a more favourable H1 period last year with the Telecom Tawal PE deal at $2.3 billion. The UAE came second in H1 with 12 transactions, representing 41% of total transactions, while also dominating in value. According to El Nahlawi, sustainability company PAL Cool Holding closed the biggest PE deal of the period, at a value of $1.04 billion. While Saudi and the UAE were in close competition, the composition of investors between the countries differed widely. While 12 of 13 transactions in Saudi involved locally based investors, signalling a strong domestic momentum, eight of the UAE's 12 transactions were led by international investors. Egypt, Jordan, Morocco and Qatar accounted for the remaining 14% of MENA transactions, with one reported in each country. Morocco sustainability company OCP Green Water closed a $620 million deal, one of the biggest over period. SWF deals Despite fewer deals, H1 2025 saw a record share of mid-to-large ticket sizes. Transactions sized between $500 million and $1 billion accounted for 29%, led by sovereign wealth funds. 'SWFs are allocating more to mid- to large-sized companies that align with national development plans (e.g., infrastructure, healthcare, sustainability),' El Nahlawi said. 'The absence of LBOs [leveraged buyouts] since 2023 underscores a broader shift away from debt-heavy structures,' she added. 'Rather than reviving leverage, SWFs appear to be reinforcing a 'strategic patient capital' approach, favouring control, alignment with national goals, and long-term value creation over quick returns. GPs are de-risking and are having a tendency towards aligned, sovereign-backed partners.' According to Magnitt, the first half of the year also saw $1 billion plus deals make up 14% of activity, indicating a five-year high. Syndicated deals also rose, with 80% of the top five transactions involving co-investments between local and international investors. In contrast, transactions under $50 million dropped to 14% of total transactions, their lowest share on record. The $100 million to $500 million bracket also climbed to 29%, up from 15% in 2024. 'Despite global macro uncertainty, the GCC, particularly Saudi Arabia and the UAE, continues to demonstrate structural strength and investor confidence. Backed by sovereign support, maturing SMEs, and a favourable regulatory environment, the region is poised to anchor future PE activity,' El Nahlawi said. (Reporting by Bindu Rai, editing by Brinda Darasha)
Bloomberg
15-07-2025
- Business
- Bloomberg
Bahoshy: Volatility in Market Causing IPO Indecision
Startups in the Middle East nearly doubled their fundraising in the first half of the year, defying a slowdown in venture capital investment in emerging markets brought on by economic uncertainty and investor caution. About $1.35 billion in VC funding was funneled to companies in the Middle East from January through June, led by Saudi Arabia and the United Arab Emirates, according to data platform Magnitt. Their Founder & CEO, Philip Bahoshy spoke exclusively to Bloomberg's Horizons Middle East and Africa anchor Joumanna Bercetche. (Source: Bloomberg)
Mint
15-07-2025
- Business
- Mint
Middle East Startups Double Fundraising to Defy Broad Slowdown
(Bloomberg) -- Startups in the Middle East nearly doubled their fundraising in the first half of the year, defying a slowdown in venture capital investment in emerging markets brought on by economic uncertainty and investor caution. About $1.35 billion in VC funding was funneled to companies in the Middle East from January through June, led by Saudi Arabia and the United Arab Emirates, according to data platform Magnitt. Middle East activity was anchored by government support, new funds and mega deals for companies including Saudi Arabia's newest unicorn, quick-delivery firm Ninja. AI commitments and deals also put the region at the 'center of global investment momentum,' Magnitt said. The haul stands in stark contrast to global emerging venture markets, where funding dropped to $3.98 billion — the weakest first half since 2017. The pullback was most acute in Southeast Asia amid uncertainty around interest rates, geopolitics and tariffs, according to the firm. 'Unless macro volatility eases significantly or inflation drops faster than expected, private capital flows into emerging markets will remain selective,' Magnitt said. 'The most resilient EVMs will be those with strong local funding ecosystems, sovereign support and low exposure to external shocks.' Saudi Arabia remains the powerhouse of VC fundraising in the Middle East, having raised more investment capital than any other country in the region for the third straight first half of the year. The kingdom saw over $245 million in new fund launches, with some backed by the Saudi sovereign wealth fund in a further sign of commitment to supporting startups at the state level. Momentum across the Middle East was reinforced by US President Donald Trump's visit to Saudi Arabia, the UAE and Qatar in May that resulted in a wide range of deals across sectors including aviation and AI, Magnitt said. Fintech remained the favored sector across the broader Middle East and North Africa in the first half, with funding tripling year over year and startups focused on payments and lending dominating activity. Investor appetite returned to Series A and B funding rounds, according to Magnitt. In mergers and acquisitions, the Middle East accounted for about 50% of deals across emerging venture markets, the highest share in two years, Magnitt said. That came as deal flow fell in Southeast Asia. 'The reversal highlights the fragile nature of recovery in EVM exit markets,' Magnitt said. 'Unless macro volatility eases and financing conditions improve, M&A activity is likely to remain sensitive.' More stories like this are available on
Bloomberg
15-07-2025
- Business
- Bloomberg
Middle East Startups Double Fundraising to Defy Broad Slowdown
Startups in the Middle East nearly doubled their fundraising in the first half of the year, defying a slowdown in venture capital investment in emerging markets brought on by economic uncertainty and investor caution. About $1.35 billion in VC funding was funneled to companies in the Middle East from January through June, led by Saudi Arabia and the United Arab Emirates, according to data platform Magnitt.
Fintech News ME
21-05-2025
- Business
- Fintech News ME
Fintech Leads MENA Startup Investment in Q1 2025
In Q1 2025, fintech startups dominated venture capital (VC) activity in the Middle East and North Africa (MENA), raising the three largest transactions of the quarter, according to new data released by Magnitt, a data and intelligence platform tracking venture capital (VC) and private equity across the Middle East. This trend underscores the sector's continued momentum and growing maturity, as high-growth fintechs broaden their offerings, expand into new markets, and position themselves for future public listings. Tabby: building a broad fintech ecosystem Tabby, a leading buy now, pay later (BNPL) platform and shopping app in the region, secured the largest deal of Q1 2025 with a US$160 million Series E financing round raised in February. The round gave Tabby a US$3.3 billion valuation, making it the most valuable tech startup in MENA. With the proceeds, Tabby will accelerate its transformation beyond BNPL into a comprehensive fintech ecosystem, focusing on digital spending accounts, payments, cards, and money management tools, in particular, the company said. This builds on key recent developments, including Tabby's acquisition of Tweeq, a Saudi Arabia-based digital wallet, as well as the rollout of Tabby Card for flexible payments, and Tabby Plus, a subscription program. The Series E round is also positioning Tabby strongly as it prepares for its initial public offering (IPO), which is anticipated to take place within the next 18 months. Saudi Arabia is being considered among potential listing venues, and the company has hired HSBC, JP Morgan, and Morgan Stanley, to work on the IPO, according to a source with knowledge of the matter. Founded in 2019 and based in Saudi Arabia, Tabby allows customers to purchase products online or in-store and split the payment over four monthly installments. The company, which currently operates in Saudi Arabia, the United Arab Emirates (UAE), and Kuwait, claims more than 15 million registered users, over 40,000 retail partners, and over US$10 billion in annualized sales volume. AppliedAI: expanding further into the EU and the US AppliedAI, an insurtech startup based in Abu Dhabi, secured the second largest transaction of Q1 2025, raising a US$55 million Series A in February. The company aims to position itself as a key artificial intelligence (AI) infrastructure provider for highly regulated industries, particularly healthcare and insurance. With a fresh funding, AppliedAI is focused on scaling its technology and workforce, and expand further into the US and European markets. Founded in London in 2021, AppliedAI leverages a combination of artificial intelligence (AI) and human review to process medical billing records and insurance claims faster and more accurately than traditional outsourcing firms. Among its notable clients are Abu Dhabi's M42 Healthcare Group, US law firm Morgan & Morgan, and UK-based drug safety firm Qinecsa. AppliedAI relocated to Abu Dhabi in 2022 to benefit from government grants. NymCard: an embedded finance leader in MENA NymCard, an embedded finance platform in MENA, secured the third biggest transaction of Q1 2025, raising in March a US$33 million Series B funding round. Headquartered in Abu Dhabi, NymCard provides a full-stack, application programming interface (API)-first payment infrastructure for banks, fintech companies, enterprises, and telecom providers to issue cards, process transactions, offer digital lending, and support real-time money movement. To date, the company has partnered with more than 50 leading firms to deliver personalized financial offerings across the region. NymCard's strategy is to cement its position as the leading embedded finance infrastructure provider in MENA by leveraging its proprietary processing platform and switching tech, as well as its deep regional integration. With the proceeds, the company said it will deepen its presence across the 10+ MENA markets it currently serves, and strengthen its payment infrastructure solutions. Funding rebounds in MENA Fintech funding in MENA is showing signs of recovery this year. In Q1 2025, startups in the sector raised a total of US$372 million across 42 deals in Q1 2025, more than 50% of 2024 capital, according to Magnitt. This signals a sharp rebound in investor confidence, and sets the stage of a strong year 2025. This rise in fintech funding reflects a broader resurgence in MENA's startup ecosystem. In Q1 2025, MENA's tech startups amassed a total of US$678 million across 133 transactions, its highest level since Q4 2023. Saudi Arabia and the UAE continued to dominate the region's VC landscape, together accounting for 88% of deal value and 76% of deal count in Q1 2025. Saudi Arabia topped the chart by total funding, securing US$750 million, while the UAE led in deal volume with 188 transactions.
