Mena startups raised $35.6 million in June, pushing half year total to $1.6 billion

While May was a bounceback month for investment in the region, June has been less dazzling, marking a 92 per cent decrease month-on-month. However, if we exclude Tabby’s $350 million debt financing round announced in May, then this monthly decline falls to 62.5 per cent. 

Saudi Arabia ranked first in terms of the funding value with $25 million across 12 rounds. UAE was a distant second, with its startups attracting $6 million spread over 20 rounds. Egyptians startups were the third largest recipients of capital thanks to Egypt’s trucking marketplace Trella’s $3.5 million round.

Sector-wise it was fintech that attracted the most number of deals with seven startups raising $3 million, but it was the foodtech space that secured the most funding with just over $20 million raised across four startups, accounting for 56 per cent of the total raised. Other sectors that gained investor attention were logistics, e-sports and mobility.

Late-stage venture capital activity witnessed a major slowdown, as well-capitalised startups continue to be frugal with spending and conserve cash amid a tighter fundraising environment. Seed and pre-Seed rounds were not insulated from the funding crunch. In fact, June’s fundraises were dominated by grants and accelerator funding and it was due to this that nine female-founded startups managed to secure investment, compared to just one in May.