MENA start-ups raised $206 million in December 2021 across 44 deals, recording a 215 percent increase year over year and a 27.5 percent decrease month on month, according to Dubai-based start-up ecosystem enabler Wamda.
VC investments were mainly concentrated in Saudi Arabia, UAE, and Bahrain, which together accounted for over 88 percent of total funding activity in December 2021. However, Saudi start-ups received the most investment at a total value of $99.5m.
Saudi Arabia, UAE, and Egypt attracted the most number of deals.
Seed-stage deals dominated funding activity with 31 deals, most of which were led by angels and accelerators, notably Sanabil 500 Mena Seed Accelerator, which invested in 11 companies across the region.
In terms of deal value, majority of funding was led by growth-stage funding rounds, including the UAE’s e-commerce enabler start-up Opontia’s $42m Series A round and Saudi Arabia-based B2B marketplace Sary’s $75m Series C raise – both rounds attracted more than half of the amount raised in December.
Sector-wise, e-commerce stood as the top-funded sector, led by Sary’s $75m Series C round. E-commerce start-ups attracted $119.5m across five deals, aggregating to 58 percent of the total deal value. Foodtech was the second-highest funded sector with $24m raised across four deals, followed by fintech which garnered $19m across eight deals.
Of the 44 deals, 12 attracted overseas funding. US-based investors participated in nine deals, making them the most active foreign investors in Mena start-ups, followed by their counterparts from Germany with a couple of deals. Regionally, Saudi investors led the pack, having invested in 23 deals in start-ups outside Saudi Arabia.
Other start-ups that bagged mega-rounds in December include Bahrain’s foodtech start-up Calo ($13.5m), UAE’s food delivery app Grubtech ($13m) and Jordan-based gaming start-up Tamatem ($11m). Also, Saudi media company telfaz11 raised a significant multi-million round led by a consortium of local investors.
Last month also saw some Egyptian start-ups making exits. Felkhedma, a marketplace for home services, was acquired by South Africa’s SweepSouth, while B2B e-pharmacy marketplace connecting pharmacies with suppliers One Platform, was acquired by Jordan-born and US-headquartered Aumet.
Start-ups with all-male founding teams garnered the largest share of VC funding with $197m raised across 38 deals, while female founders raised $3m, amounting to 1.6 percent of the total amount raised, down from 5 percent the month before. Start-ups with male and female co-founders raised 3 percent of funding.
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