Latest from Wamda
Wamda
16 hours ago
- Business
- Wamda
MENA startup investment hits $2.1 billion in H1 2025, up 134% YoY
Startup funding in the Middle East and North Africa reached $2.1 billion during the first half of 2025, with 334 deals recorded across the region — a 134% increase compared to the same period in 2024. While this growth was partially fuelled by an uptick in debt-based financing, the figures nonetheless reflect a notable level of investor activity amid continued regional uncertainty. Q2 ends on a high note despite June slowdown The second quarter concluded with $583.4 million deployed across 149 deals, exceeding Q2 2024 in both value and deal count. The performance marks a rebound despite a weaker June, underlining investors' continued appetite for exposure to the region's startup ecosystem. Market conditions remained challenging throughout the first half of the year. Currency volatility, ongoing regional tensions, and fluctuations in global commodities — including gold, oil, and the US dollar — all contributed to a climate of uncertainty. However, select venture capital firms remained active, deploying capital with measured optimism. Fintech leads Q2; Saudi Arabia regains top funding position Fintech attracted the highest volume of capital in Q2, with 38 startups securing a combined $170 million. Proptech followed, raising $77 million across eight transactions, while traveltech recorded $40 million through two deals. Saudi Arabia emerged as the most funded market in the quarter, displacing the United Arab Emirates. A total of $231.5 million was invested in 38 Saudi startups, compared to $197.7 million across 52 transactions in the UAE. Egypt ranked third, attracting $133 million via 30 deals. By stage, mid-stage startups captured the largest share of capital, with $161 million allocated across 10 Series A deals. Early-stage startups accounted for the majority of transactions, with 67 deals recorded in the quarter. Only four debt transactions took place during the period, alongside two later-stage equity rounds. H1 totals show debt financing as a key driver Total investment in H1 2025 reached $2.1 billion, a significant increase from $898 million in H1 2024. However, when excluding debt-based transactions, which accounted for $930 million, the year-on-year growth narrows to 53%. This expansion coincided with renewed global attention on the region following the visit of US President Donald Trump, accompanied by a delegation of major Silicon Valley investors. The visit was widely interpreted as a signal of strategic interest in the region's tech infrastructure and market potential. Saudi Arabia captures 64% of regional investment Saudi Arabia accounted for approximately 64% of total capital deployed in MENA during the first half of the year. Investment volumes in the Kingdom surged 342% compared to H1 2024, underpinned by a policy-driven ecosystem and consistent government intervention. The majority of funding activity in Saudi Arabia was concentrated in fintech, which raised $969 million across 20 transactions. Contech and proptech followed, attracting $48 million and $39 million, respectively. The Saudi market benefited from sovereign wealth funds backing local VC firms, alongside government incentives designed to attract international founders and technologies. The dominance of male-led ventures remained evident. However, three female-founded startups raised a total of $60 million, and mixed-gender founding teams secured $34 million across seven deals. Funding activity was largely driven by domestic firms such as STV, Wa'ed Ventures, and Raed Ventures. International participation also surfaced, with JPMorgan backing a debt round raised by Lendo, signalling foreign institutional interest in the Saudi fintech market. UAE sees steady growth amid competitive pressure While no longer the region's top-funded market, the UAE continued to attract substantial investor interest. In H1, 114 UAE-based startups secured $541 million in capital — an 18% increase from the previous year. Debt represented just 19% of total UAE deal volume, reflecting a relatively healthier equity pipeline. Fintech led the sectoral breakdown with $265.8 million raised across 35 deals. Insurtech followed with $55 million across five deals. Web3 and AI startups each secured $44.7 million in funding — the former through 11 companies and the latter through 13. Eight female-led startups in the UAE raised $17.6 million, while mixed-gender teams secured $91.7 million. Despite those figures, male-founded startups continued to dominate the capital landscape. Egypt gains momentum despite macroeconomic strain Egypt registered a 106% year-on-year increase in funding volume, with $179 million raised across 52 deals. The uptick comes amid ongoing macroeconomic stress, with Egypt's external debt reaching 38.8% of GDP by the end of 2024. Debt financing accounted for 13% of the funding activity. Unlike Saudi Arabia and the UAE, Egypt's most funded sector was proptech, which received $75 million through three transactions. Fintech followed with $85.3 million raised by 10 companies, while e-commerce startups secured $24.8 million across seven deals. Female-founded ventures in Egypt received $425,000 in total, while mixed-gender teams secured $23 million. The remainder of the funding went to 37 male-led companies. Fintech, debt, and mid-stage Rounds Shape H1 Fintech maintained its position as the dominant sector across MENA in H1, capturing 62% of all deployed capital through 77 deals. Two of the region's three mega-deals during the period were directed toward fintech companies. A single large investment in iMena Group elevated venture studios to second place in sector rankings, followed by proptech, which secured $119 million across 16 startups. E-commerce recorded $65 million in 24 transactions. Debt-based financing played a central role in shaping the capital landscape. Approximately 44% of H1 funding — or $930 million — was provided through debt instruments, signalling a shift in investor behaviour amid global economic uncertainty. Early-stage activity remains strong; B2B prevail Early-stage companies (pre-seed to Series A) attracted $568 million in funding, while later-stage companies (pre-Series B to pre-IPO) secured $431.7 million. Despite the dominance of mid-sized rounds in capital volume, early-stage startups continued to lead in deal count. Business-to-business (B2B) models attracted the majority of investor capital. B2B startups raised $1.5 billion across 197 transactions, representing 70% of total funding in the first half. The remaining capital went to B2C startups or companies operating in hybrid models. Gender funding gap widens Funding allocation remained highly imbalanced across genders. Startups founded exclusively by men received nearly 89% of total H1 capital. Female-founded startups accounted for just 27 transactions, raising a combined $84.5 million. Mixed-gender founding teams secured $150 million.
Wamda
a day ago
- Business
- Wamda
Journify doubles valuation after securing fresh investment
UAE-based Journify has secured strategic investment from Shorooq Partners, Bunat Ventures, and Plug and Play, doubling its valuation and growing 5x in revenue within six months. Founded in 2023 by Taoufik El Jamali, Amine Chouki and Omar AlShoubaki, Journify is an AI-powered data activation platform that enables GCC brands to activate first-party data across platforms like Meta, TikTok, Snapchat, Google, and X—offering privacy-compliant, performance-driven marketing solutions amid tightening regulations and declining third-party cookies. This funding will accelerate Journify's AI roadmap development, support hiring across engineering, product, and commercial teams, and drive further expansion into key GCC markets. Earlier this year, Journify raised $4 million in funding, led by Silicon Badia, with participation from RZM and other investors. Press release: Journify, the UAE-based AI-powered data activation platform, is transforming how GCC brands leverage first-party data for measurable growth. With 5x revenue growth and a doubled valuation in just six months, Journify is expanding across Saudi Arabia, the UAE, and the broader Gulf region. The company has quickly become the preferred partner for brands seeking performance-driven, privacy-compliant marketing solutions. Today's digital landscape presents significant challenges for MENA brands: stricter privacy regulations, disappearing third-party cookies, and increasing ROI demands. Journify offers a simple solution by enabling advertisers to activate their first-party data across major platforms, including Meta, TikTok, Snapchat, Google, and X. This approach converts customer insights into measurable, scalable performance. Journify's growth is driven by partnerships with forward-thinking brands ready to embrace modern advertising approaches. Retail leader Jarir has used Journify's AI platform to activate their first-party data on Meta, resulting in a 182% increase in Return on Ad Spend (ROAS) and a 51% decrease in Cost Per Purchase (CPP). Similarly, Baytonia, a leading furniture retail and marketplace brand in the Gulf region, implemented Journify's solution on TikTok, achieving an 80% increase in ROAS and a 44% drop in CPP. These results clearly demonstrate the tangible value of Journify's approach. These successes underscore Journify's core mission: making first-party data activation both accessible and effective for brands competing in today's fragmented attention economy. To meet growing demand, Journify is accelerating its AI product roadmap, focusing on agentic AI systems for 1:1 personalisation at scale. The company is expanding teams and strengthening its Gulf presence. With targeted AI investments, Journify will soon deploy autonomous agents for personalised experiences, precision targeting, automated media optimisation, and improved conversion rates throughout the customer journey. "In today's privacy-first landscape, brands need solutions that deliver growth and profitability," said Taoufik El Jamali, Co-Founder and CEO of Journify. "We're reimagining brand-customer relationships. Our goal is enabling businesses of all sizes to leverage first-party data efficiently. Our customers' results validate our approach and signal a new era in digital marketing." The timing couldn't be better. MENA stands as one of the world's fastest-growing digital advertising markets. According to the Interactive Advertising Bureau (IAB) MENA, regional digital ad spend surged by 20 percent in 2024 alone, reaching $7bn. Yet despite this impressive growth, many advertisers continue to grapple with data fragmentation, lack of transparency in the ecosystem, and insufficient measurement frameworks. "Brands across this region increasingly demand greater transparency and efficiency from their marketing investments," said Ian Manning, Executive Director at IAB MENA. "Solutions centred on first-party data, AI-powered optimisation, and measurable ROI are best positioned to lead this next growth phase." To fuel its momentum, Journify recently secured strategic investment from Shorooq, Bunat Ventures, and Plug and Play. This funding will accelerate Journify's AI roadmap development, support hiring across engineering, product, and commercial teams, and drive further expansion into key GCC markets. "The team's clarity of vision and execution has deeply impressed us," said Omer Zabit, Partner at Shorooq. "Journify addresses one of digital advertising's most critical gaps today: the underutilisation of first-party data. As regulations evolve and brands demand better results, this will be the infrastructure marketers rely on for the next decade."
Wamda
a day ago
- Business
- Wamda
Omani startup SafaQat raises funding to expand AI-powered procurement platform
Oman-based digital procurement startup SafaQat has raised funding from the Oman Future Fund and Idrak Group. Founded in 2020 by four brothers, the platform digitises the tendering process and has earned support from Oman's SME Development Authority (Riyada). SafaQat will use the investment to enhance its AI-powered infrastructure, improve user experience, expand into government procurement, and enter new markets. Press release: SafaQat, an Omani digital procurement and purchasing platform, has successfully raised an undisclosed amount in strategic funding from the Oman Future Fund and the Idrak Group. The investment reflects growing confidence in local technology ventures and their role in building a sustainable digital economy. Supervised by the SME Development Authority (Riyada), SafaQat was founded by four brothers from the Wilayat of Nizwa — Majed, Sulaiman, Ibrahim, and Al Moatasem Al Saifi — during the COVID-19 lockdowns. The platform evolved from a simple quote-sharing tool into a comprehensive solution supporting competitive procurement through digital tenders. 'This investment represents a qualitative leap. It's not just financial; it's about believing in the future of Oman's digital economy and empowering youth,' said co-founder Al Moatasem Al Saifi. The funding will be used to improve technical infrastructure, user experience, and AI capabilities; expand into government procurement; and scale to new markets. SafaQat currently hosts over 2,486 users, 1,260 tenders, and 2,784 registered suppliers, positioning it as a national leader in digitising procurement and supply chains. The platform has received multiple accolades, including recognition at Jadarah 2024 and the Omani Startup Accelerator.
Wamda
2 days ago
- Business
- Wamda
Egypt's Flend secures $3 million seed to expand digital SME financing
Egypt-based fintech Flend has secured $3 million in seed funding through a blended equity and debt round. The equity was led by Egypt Ventures, with participation from Camel Ventures, Sukna Ventures, Plus VC, Banque Misr, and family offices including El Sewedy and Baalbaki. Debt financing was provided by MSMEDA and local banks. Founded by Ahmed Zaki, Nehal Helmy and Saif Edeen El Bendari, Flend is an FRA-licensed Digital NBFI, offering fully digital short-term working capital loans to SMEs through embedded finance and direct integration with 20+ supply chain platforms in sectors like agri-food, e-commerce, and healthcare. The funding will support Flend's goal to inject EGP 1 billion in SME loans within a year, expand its team and partnerships, and enhance its tech infrastructure to close Egypt's $50 billion SME financing gap. Press release: Egypt's digital SME lending platform Flend has announced the successful closure of its $3 million seed funding round, a mix of equity and debt. The equity round was led by Egypt Ventures, with participation from Camel Ventures, Sukna Ventures, Plus VC, Banque Misr, and prominent family offices including El Sewedy and Baalbaki. On the debt side, Flend secured funding from MSMEDA and several local banking partners. Licensed by Egypt's Financial Regulatory Authority (FRA) as a Digital Non-Banking Financial Institution (Digital NBFI), Flend enables fully digital lending for SMEs, from onboarding and credit scoring to disbursement and collections, all through digitally binding contracts. With over 20 embedded partnerships, Flend integrates directly into platforms that serve SME supply chains across sectors like agri-food, healthcare, e-commerce, manufacturing, retail, and export. The platform plans to inject EGP 1 billion in working capital loans over the coming year, targeting Egypt's $50 billion SME financing gap. 'This round allows us to finance SMEs where they do business—within the platforms that drive Egypt's economy,' said Ahmed Zaki, Co-Founder and CEO of Flend. 'We've seen rising demand and are ready to scale our reach.' Hasan Haider, Founder and Managing Partner at Plus VC, commented: 'Flend is solving a major regional challenge—making SME finance digital-first, embedded, and accessible.'
Wamda
3 days ago
- Business
- Wamda
FAB's Lime app enters Egypt's fintech scene with $9.4 million investment
Press release: Lime Consumer Finance, the largest platform for education financing in Egypt and a wholly owned entity of First Abu Dhabi Bank Group in the UAE, has officially launched in the fintech ecosystem, with a specialised focus on educational financing as its first strategic entry point. Licensed by Egypt's Financial Regulatory Authority (FRA), Lime offers structured, transparent, and accessible solutions for families in Egypt. While education marks the beginning, Lime's app is designed to expand into other essential life sectors, paving the way for broader financial empowerment. Lime enables families to plan and pay for education across a holistic network of nurseries, schools, and universities. With over 30% of Egypt's population under the age of 15 (CAPMAS, 2025), education finance has become a natural priority. The app features installment options ranging from 6 to 12 months for amounts up to EGP 1 million, with digital onboarding and financing approvals granted within minutes, ensuring speed, convenience, and regulatory compliance. Mr. Ahmed Mohsen, CEO and Managing Director of Lime Consumer Finance, stated: 'With an initial investment of USD 9.4 million, Lime enters the market at a time when Egypt is witnessing a parallel surge in private education demand and digital financial inclusion—fueled by a young population and supportive national policies.' He added: 'We're proud to be contributing to Egypt's Financial Inclusion Strategy by addressing a real need. Lime fills a critical gap by offering structured, transparent, and accessible financing solutions—and this is just the beginning. With a strong investment in technology, we aim to deliver a unique digital journey for customers, with approvals granted in minutes using a state-of-the-art credit decision engine.' On the expertise front, Lime's Board of Trustees brings together multidisciplinary expertise across key sectors essential to the company's mission: Ms. Mariam El Samny, Head of Consumer Banking at FABMISR; Mr. Refaat Zayed, Head of Retail Credit at FABMISR; Mr. Abdallah El Ebiary, Managing Director at Alvarez & Marsal's Sovereign Advisory Services; Mr. Mohamed El Kalla, CEO of CIRA Education; Ms. Magda Habib, CEO and Founder of Dawi Clinics and Mr. Omar Bassiouny, Founding Partner at Matouk Bassiouny and Group Head of Corporate and M&A. Backed by the strength and experience of First Abu Dhabi Bank Group and guided by a multidisciplinary board, Lime is committed to driving financial inclusion and sustainable impact across Egypt's evolving fintech landscape. Education is Lime's starting point, but the app is designed for future expansion into other high-impact sectors.
