The Middle East and North Africa, MENA startups raised $279 million across 42 deals in December 2024, according to a report by Wamda and Digital Digest. Debt financing dominated the landscape, comprising 44% of the total amount, largely driven by ALLO’s $100 million debt round. Excluding debt, funding stood at $156 million—a modest 8% increase compared to the previous month but a significant 76% drop from December 2023.
UAE Leads the Way
The UAE emerged as the top destination for funding, securing $217 million across 18 deals—78% of the region’s total funding. ALLO’s $100 million debt round was the largest single transaction, significantly boosting the UAE’s numbers. Saudi Arabia followed with $30 million across 11 deals, while Bahrain claimed the third spot, largely thanks to Calo’s $25 million Series B round. Bahraini startup Unipal also completed a funding round but kept the amount undisclosed.
Egypt, however, faced a sharp decline, raising only $2 million from five deals. MENA startups in Morocco, Jordan, Tunisia, and Qatar collectively attracted $4.4 million, underscoring the uneven distribution of funding across the region.
Sector Insights: Fintech and Web 3.0 Shine
Web 3.0 startups led the funding race, heavily influenced by ALLO’s $100 million debt round. Fintech proved to be the most active sector, raising $93.5 million across seven transactions.
Foodtech made a strong comeback, bringing in $25.1 million through two deals, with Calo’s Series B round contributing significantly.
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Edtech showed signs of recovery, raising $16 million from five rounds, while other sectors like construction tech and logistics attracted smaller investments.
Investor Focus: Early-Stage MENA Startups Draw Attention
Seed-stage MENA startups raised $59 million, highlighting investors’ interest in early ventures. Pre-seed rounds secured $7.7 million across seven deals. Six Series A startups raised a combined $53 million, while Calo’s Series B round stood out as the only later-stage funding for the month.
The business-to-consumer (B2C) model garnered $128.4 million across 18 deals, driven primarily by fintech and foodtech. Meanwhile, business-to-business (B2B) startups raised $124.6 million from 22 transactions, showcasing an almost equal split between the two business models.
Year-on-Year Comparison
December 2024 funding saw a steep decline compared to the $1.16 billion raised in December 2023, reflecting the broader impact of global economic uncertainties. With investors prioritizing capital preservation, debt instruments are increasingly becoming a preferred choice.
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