CAIRO: Saudi Arabia’s startup ecosystem dominated the Middle East and North Africa (MENA) region in September, securing 60 percent of the total funding, amounting to $170.8 million across 23 deals.

Wamda’s monthly report revealed that the MENA region raised a total of $282 million across 63 startups, marking a 234 percent increase from the previous month and a 607 percent rise year-on-year. Debt financing accounted for 12 percent of the total funds raised.

Leading the funding rounds was Saudi mobility startup SHIFT, which raised $82.8 million, followed by online car marketplace Syarah, which secured $60 million in a Series C round, including $20 million in debt financing.

The UAE followed with $73.8 million raised by 12 startups, while Egypt trailed with 13 startups collectively raising $25 million.

Fintech continued to be the most attractive sector for investors in the MENA region for the fourth consecutive month, attracting $102.5 million across 14 startups. Mobility startups also saw significant investment, driven by SHIFT’s substantial funding round. E-commerce and educational tech sectors were also active, raising $63 million and $4.35 million respectively, each with nine deals.

The software-as-a-service sector saw $10 million in investments across eight startups. Accelerator programs notably impacted deal volume, with Flat6Labs’ demo days in Jordan and Saudi Arabia accounting for 17 deals valued at a combined $2 million.

Early-stage investments remained a priority for investors, who poured $102 million into 15 seed deals and $5 million into seven pre-seed startups. In contrast, only two later-stage rounds were reported, Paymob’s $22 million Series B and Syarah’s Series C.

Female-founded startups struggled to attract significant funding, raising only $583,000, mostly through grants. In contrast, male-founded startups dominated the landscape, securing $260 million across 49 deals. Additionally, $21 million was raised by seven startups co-founded by both men and women.

Saudi edtech startup AILA closed a $1.15 million pre-seed round led by Sabah Hub, with participation from White Hill Capital and three other angel investors. The company plans to use the funds for regional expansion and technology enhancement.

Saudi-based investment community Tawaref acquired local AI company Amaana.ai for an undisclosed amount. The acquisition aims to enhance Tawaref’s capabilities in providing innovative financial and technological solutions.

Saudi game studio UMX raised $4.5 million from Jetapult, an investment company backed by Accel Partners. The new capital will be used to expand UMX’s game portfolio and reach new audiences globally.

JARAS Hospitality, a Saudi startup focused on integrated hospitality management solutions, secured $666,000 in a pre-seed round led by undisclosed angel investors. The company plans to use the investment to further develop its product and expand its customer base.

Saudi Venture Capital committed $15 million to Vision Ventures’ Saqr Fund II, a $90 million-target venture capital fund focusing on early-stage startups across Saudi Arabia and the broader MENA region.

Egyptian health e-commerce platform WellPal relocated its operations to Saudi Arabia following an undisclosed investment from an angel investor. The company aims to strengthen its position in the Saudi market and expand regionally.

Egyptian micromobility startup Rabbit Mobility closed a $1.3 million investment round led by 500 Global and Untapped Global. The funds will support the company’s growth and expansion across Egypt and other North African markets.

Morocco-based property tech startup Agenz received an undisclosed investment from Renew Capital. The funds will help the company expand its reach in Morocco and other African markets.

Spain-based Moonbase Capital launched its second investment vehicle, a $15 million fund aimed at acquiring and growing small to medium-sized enterprises worldwide.

UAE-based fintech Abhi raised $15 million in debt financing in a round led by Shorooq Partners and Amplify Growth Partnership. The new funding will support Abhi’s expansion efforts, enabling it to scale its operations and broaden access to earned wage access services for both blue- and white-collar workers in the region.

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