Funding Trends in African and Middle Eastern Startups - Week 32, 2025 (Infographic)
Startups in the Middle East and Africa have shown a remarkable growth spurt in the first half of 2025, with a total funding of $2.1 billion raised across 334 deals. This represents a 134% year-on-year increase, indicating a surge in investor interest in the region [1][2][4].
Saudi Arabia emerged as the dominant market, capturing 64% of regional funding with about $1.34 billion raised, primarily driven by fintech investments totaling $969 million [1][2][4]. The UAE and Egypt followed as leading hubs, with Egypt raising $178.9 million across 52 deals within Africa [1][5].
In Africa, startup funding surpassed $1 billion in H1 2025, with significant contributions from Egypt, South Africa, Nigeria, and Kenya [5]. Egypt led with $178.9 million in 52 deals [1], reporting a 130% increase YOY, and marked by major proptech and fintech investments [5]. South Africa accounted for 26% of African funding, raising around $191 million [5].
A strong emphasis on fintech, especially in the Middle East, particularly Saudi Arabia, is a key trend. The energy sector is also seeing investment, with South African travel fintech startup TurnStay raising money to help upgrade travel software across the continent [6].
The energy in these regions is high, with companies raising smart money, building for real needs, and attracting global attention without losing their local edge [7]. Notable investments include the Series A round for the UAE-based B2B spend management platform Alaan, which secured $48 million [8]. Pioneer Fund, Y Combinator, and 468 Capital also participated in this round.
In Egypt, Wuilt, a no-code website builder, received funding from Flat6Labs, MTF VC, and Hub7Lab [9]. Saudi Arabia's AI space is growing, with Deep.SA and RIFD both receiving investment to scale their respective AI and fintech offerings [10].
The logistics sector is also gaining traction, with Salasa, a fulfilment startup based in Saudi Arabia, raising $30 million in Series B funding [11]. E-commerce is gaining serious ground in Saudi Arabia, making logistics enablers like Salasa foundational pieces of the digital economy puzzle.
Iraq's tech scene is showing promise, with bold investments suggesting room for growth where infrastructure is just beginning to take shape [12]. The funding for Flood shows a growing appetite for modular, scalable tools across emerging markets [13].
The Series A round for Alaan was led by Peak XV Partners, previously known as Sequoia India [14]. Artal Capital led the Series B funding round for Salasa [15]. Saudi Arabia's Deep.SA raised $1.2 million from Tam Development and Raed Ventures to scale its homegrown AI products [16].
South African travel fintech startup TurnStay raised $2 million to help tour operators streamline payments and bookings, with plans to expand into other African markets [6]. The first half of 2025 represented a period of rapid growth and increased investor interest in startups across these regions, underpinned by government support and strategic international engagement [2][4][5].
[1] MAGNITT: MENA Startups Raise $2.1 Billion in H1 2025 [2] TechCrunch: Startups in MENA and Africa Raised $2.1 Billion in H1 2025 [3] MAGNITT: MENA Startup Funding Shows Strong Growth in H1 2025 [4] TechCrunch: MENA Startups Show Strong Funding Performance in H1 2025 [5] TechCabal: African Startup Funding Surpasses $1 Billion in H1 2025 [6] Disrupt Africa: TurnStay Raises $2 Million to Expand Across Africa [7] TechCrunch: The Energy in MENA and African Startup Scenes is High [8] TechCrunch: Alaan Secures $48 Million Series A Round [9] MAGNITT: Egyptian No-Code Website Builder Wuilt Secures Funding [10] MAGNITT: Saudi Arabia's AI Space is Growing with Investments in Deep.SA and RIFD [11] MAGNITT: Salasa Raises $30 Million in Series B Funding [12] MAGNITT: Iraqi Logistics Aggregator Boxy Closes $1.5 Million Pre-Seed Round [13] MAGNITT: Flood Secures Funding to Help Companies Roll Out All-in-One Customer Platforms [14] MAGNITT: Peak XV Partners Lead Series A Round for Alaan [15] MAGNITT: Artal Capital Leads Series B Funding Round for Salasa [16] MAGNITT: Saudi Arabia's Deep.SA Raises $1.2 Million to Scale AI Products
Sports startups in Saudi Arabia might experience a surge in investor interest, similar to fintech and other sectors, considering the high energy in the region, attractive global attention, and strategic international engagement [7]. For instance, the logistics sector, enablers like Salasa, and travel fintech startups such as TurnStay, have successfully raised significant funds [6, 11, 6].
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