Funding Trends in African and Middle Eastern Startups - Week 32, 2025 (Infographic Version)
In the vibrant landscape of tech startups, the Middle East and Africa (MENA) region is experiencing a significant surge in funding activity. Recent rounds have highlighted a strong focus on sectors such as fintech, artificial intelligence (AI), logistics, and Software-as-a-Service (SaaS).
Leading the charge in Q2 2025 was the fintech sector, attracting $170 million across 38 startups, making it the leading sector in terms of funding at that time [1]. However, the spotlight shifted in July when deeptech, including AI, topped sector funding with $250.3 million in four deals, followed by e-commerce ($250 million), SaaS ($89 million across 12 deals), and fintech ($61 million in 11 deals) [2][4].
Saudi Arabia has been a standout in the funding landscape, with notable rounds such as Ninja, a Q-commerce platform, raising a record $250 million Series, making it a unicorn [4]. Other significant Saudi Arabian startups include Calo, a foodtech startup, which secured $39 million in Series B extension, and Lucidya, a SaaS enterprise technology provider, which raised $30 million Series B [4].
Notable funding rounds in the UAE include Alaan, a B2B spend management fintech startup, which raised a substantial $48 million Series A led by Peak XV Partners (formerly known as Sequoia India) with participation from Pioneer Fund, Y Combinator, and 468 Capital [3].
Elsewhere in the region, TurnStay, a South African travel fintech, raised $2 million to help tour operators streamline payments and bookings, while Salasa, a Saudi logistics fulfilment startup, attracted $30 million Series B funding [3]. In Egypt, Suplyd, a digital procurement startup, raised a pre-Series A round, and Iraq's tech scene is showing promise with Boxy, an Iraqi logistics aggregator, closing a $1.5 million pre-seed round [3].
The AI space in Saudi Arabia is also receiving a boost, with Deep.SA, a homegrown AI startup, raising $1.2 million from Tam Development and Raed Ventures [3]. RIFD, a Shariah-compliant SME securitization fintech platform, also received strategic investment [3].
The robust investor confidence in the region is evident, with startups raising $2.1 billion during the first half of 2025, with 334 deals recorded, marking a 134% year-over-year increase [1][2][3][4]. The geographical distribution of funding rounds shows Saudi Arabia and the UAE leading, followed by growing activity in Iraq, Morocco, and a relative decline in Egypt due to economic pressures [2][4].
In summary, while fintech led Q2 2025 funding, it was surpassed by deeptech/AI in July. Large rounds in Saudi Arabia and the UAE across fintech, logistics, AI, and SaaS underscore these sectors as key drivers of startup growth in the MENA region [1][2][3][4]. The region's startups are not only raising smart money but are also building solutions for real needs, attracting global attention. As infrastructure continues to develop, bold bets in emerging markets, such as Iraq, suggest a promising future for the region's tech scene.
References: [1] MENA Startup Ecosystem Report, Q2 2025. [2] MENA Venture Investment Report, July 2025. [3] TechCrunch, Various articles, July-August 2025. [4] Arabian Business, Various articles, July-August 2025.
- The surge in funding activity in the Middle East and Africa (MENA) region, as highlighted in the MENA Venture Investment Report, revealed a shift in focus from fintech to deeptech, including artificial intelligence (AI), in July 2025.
- The robust growth of the MENA region's tech scene, as documented in the MENA Startup Ecosystem Report, Q2 2025, is marked by significant investments in key sectors such as fintech, artificial intelligence (AI), logistics, and Software-as-a-Service (SaaS).
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