{"id":83680,"date":"2025-08-15T02:32:23","date_gmt":"2025-08-15T02:32:23","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/83680\/"},"modified":"2025-08-15T02:32:23","modified_gmt":"2025-08-15T02:32:23","slug":"mena-startup-funding-soars-to-783-million-in-july-2025","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/83680\/","title":{"rendered":"MENA startup funding soars to $783 million in July 2025"},"content":{"rendered":"

The third quarter of 2025 opened with a strong start as startup investment in the Middle East and North Africa surged in July. Fifty-seven startups raised a total of $783 million, marking a 1,411% jump month-on-month<\/a> and more than double the total from July last year<\/a>. The sharp rise was driven largely by two mega deals that dominated the funding landscape.<\/p>\n

Saudi Arabia takes the lead<\/p>\n

Saudi Arabia retained its position at the top of the regional funding table, with 16 deals worth $396.5 million. The UAE followed closely, attracting $359 million across 22 startups \u2014 a reflection of its continued appeal to both regional and global investors.<\/p>\n

The month also saw a shake-up further down the rankings. Iraq climbed to third place with a single $15 million deal for InstaBank<\/a>, displacing Egypt from the top four. Morocco took fourth spot, driven by Ora Technologies<\/a>\u2019 $7.5 million round. Egypt, once a regular fixture in the top three, slipped to fifth, with just $4 million raised across seven startups \u2014 a decline likely influenced by macroeconomic pressures and currency volatility.<\/p>\n

Deeptech overtakes fintech<\/p>\n

For the first time in months, deeptech led the sector funding, attracting $250.3 million across four deals. E-commerce made a strong comeback, also securing $250 million, thanks to Ninja\u2019s<\/a> record-breaking raise. SaaS startups ranked third with $89 million across 12 deals, while fintech dropped to fourth, with $61 million invested in 11 transactions.<\/p>\n

The shift reflects a growing appetite for IP-heavy, innovation-led ventures and scalable consumer platforms, even as fintech funding cools.<\/p>\n

Mega deals set the pace<\/p>\n

While many startups did not disclose their funding stages, two mega deals\u2014Ninja and XPANCEO<\/a> \u2014 accounted for 56% of July\u2019s total. Later-stage rounds brought in $158 million, while Series A deals raised a combined $267 million from three startups. An additional 26 early-stage startups secured $36 million. Debt financing remained marginal, making up just 2% of the month\u2019s total, underscoring the dominance of equity-led transactions.<\/p>\n

B2C model back in focus<\/p>\n

Consumer-facing startups once again took centre stage. Led by XPANCEO and Ninja, B2C companies captured $534 million in funding. B2B models followed, securing $202.4 million across 32 deals, with the remainder flowing to D2C and hybrid-model ventures. The swing towards B2C marks a reversal from earlier in the year, when enterprise solutions dominated investor interest.<\/p>\n

Gender gap persists<\/p>\n

Funding remained heavily skewed towards male-led ventures. Startups founded by men raised $774.5 million across 43 deals, while mixed-gender founding teams secured $5.8 million. Female-led startups attracted just $3 million across eight deals. Despite growing visibility for women entrepreneurs, the funding gap shows little sign of narrowing.<\/p>\n

Opportunities ahead<\/p>\n

Seven months into 2025, MENA startup funding has already surpassed the full-year total for 2024 \u2014 a clear sign that the region\u2019s innovation landscape is maturing. With Saudi Arabia and the UAE drawing record-breaking rounds, and emerging markets like Iraq and Morocco making surprise appearances in the top rankings, investor interest is diversifying beyond traditional hubs.<\/p>\n

The combination of large-scale late-stage bets and a steady flow of early-stage deals suggests that global investors see both immediate scale opportunities and long-term pipeline potential. If this momentum holds, MENA could cement its position as a growth hotspot in sectors where it holds unique advantages \u2013 from deeptech and AI to logistics, energy, and cross-border commerce \u2013 leveraging its strategic geography, youthful talent pool, and increasingly supportive policy frameworks.<\/p>\n

These monthly reports are a collaboration between Wamda and\u00a0Digital Digest<\/a>.<\/p>\n

\"\"<\/p>\n

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