MENA Startups Raise $494M in February 2025

The Middle East and North Africa (MENA) startup ecosystem witnessed an extraordinary surge in February 2025. From our findings, MENA startups secured a staggering $494 million across 58 deals, marking a 371% month-on-month (MoM) growth when excluding debt financing.

This funding surge represents a nearly fivefold increase compared to February 2024. In contrast to January 2025, where 90% of investments were debt-financed, February saw debt contributions drop to just 15% of total investments. The substantial rise in equity financing highlights investor confidence in MENA startup ecosystem.

Saudi Arabian startups dominated fundraising in February, securing $250.3 million across 25 deals. This boost was significantly influenced by the LEAP 2025 conference, where several startups announced new funding rounds.

The UAE followed with $203.5 million raised by 15 MENA startups, while Egypt ranked third with $27.5 million across eight deals. Oman also made a notable comeback, securing $6 million through two deals.

 Once again, the fintech sector emerged as the top recipient of investments, raising $274 million through 15 deals. Insurtech followed, attracting $55 million across two deals, while logistics startups secured $28.5 million across four deals.

Investor attention shifted towards later-stage startups in February. The largest deal was Tabby, a fintech firm that secured $160 million in Series E funding. Ula and Merit Incentives raised $28 million each in their Series B rounds, while Taager and Khazna secured $6.7 million and $16 million, respectively, in their pre-Series B rounds.

Despite the focus on later-stage funding, early-stage investments remained strong. Pre-seed startups collectively raised $22 million across 15 deals, while seven Series A startups secured $158 million. Additionally, 10 seed-stage startups obtained $27.8 million in funding.

Business-to-business (B2B) startups led fundraising, securing $191.6 million across 33 deals. Business-to-consumer (B2C) startups followed, raising $138.5 million across 18 deals. Meanwhile, MENA startups operating in both B2B and B2C models raised $164 million.

Startups led by male founders received the majority of funding, securing $429 million, accounting for 87% of the total investments. In contrast, startups founded by women received only $200,000, with the remaining funds invested in co-founded ventures.

The sharp increase in funding activity highlights the growing investor confidence in MENA startup’s ecosystem. With a strong pipeline of later-stage investments and ongoing early-stage funding, the region’s entrepreneurial landscape is poised for further growth.