The Middle East and North Africa (MENA) startup ecosystem saw a substantial surge in funding in April 2025, securing $228.4 million across 26 deals. This figure marks a 105 percent monthly increase and almost a 300 percent annual rise, said Wamda in its latest report.
Interestingly, the absence of debt-financed deals in April highlights growing investor confidence in equity-based funding, a trend reflecting a healthier capital environment.
Saudi Arabia led MENA startup funding during the month, attracting $158.5 million across eight deals, primarily driven by iMENA Group’s $135 million pre-IPO round.
The UAE followed, with nine startups raising a total of $62 million, leading the region in activity with the highest number of deals.
Morocco jumps to third place
Elsewhere in the MENA region, Morocco experienced a notable surge to third place, attracting $4 million in funding across two startups. Egypt, by contrast, saw a more modest outcome, with four startups securing just $1.5 million.
Iraq re-entered the market this month with a $1 million deal after last month’s absence. Meanwhile, Bahrain raised $1 million in one deal, and Oman attracted $100,000 in one deal.
Investor appetite remained the strongest in the fintech sector, which attracted $44 million across seven deals. Traveltech also climbed the ranks, thanks in part to HRA Experience’s transaction, while e-commerce drew $2.5 million across three startups.
Notably, SaaS startups in the MENA region made a return in April, securing $1.8 million in three deals after minimal visibility in the first quarter.
Read: ADNOC Distribution reports 16 percent net profit increase to $174 million in Q1 2025
Early-stage MENA startups dominate
While later-stage activity was limited to iMENA’s pre-IPO round, early-stage MENA startups dominated the month’s investment landscape, raising $49 million across 20 transactions.
Funding for female-led startups continued its downward trend, falling to a concerning low of under $500,000 in April. In contrast, startups with male founders secured 97 percent of all disclosed investments. An additional $6.5 million went to three startups with both male and female co-founders.
By business model, the business-to-business (B2B) segment led the way, attracting an impressive $180 million across 12 deals. Business-to-consumer (B2C) startups followed, securing $43 million across seven deals. The remaining investments went to six startups operating dual B2B and B2C models.
