In a landmark month for the region’s startup ecosystem, Saudi Arabia emerged as the hot spot of fundraising activities, with total investments soaring to $198 million in 25 transactions. This surge, the highest in the region, underscores the growing vibrancy and investor confidence in Saudi Arabia’s startup landscape.
Software as a Service leads growth
A report from Wamda and Digital Digest revealed that the bulk of the investments in startups ($130 million) went into the pre-IPO round of Saudi Arabia-based Software as a Service (SaaS) provider Salla. This significant injection of capital reflects the increasing appetite for innovative solutions and underscores Saudi Arabia’s position as a growing hub for technology-driven enterprises.
SaaS providers emerged as the frontrunners in fundraising in the region. They raised a total of $130.6 million across nine deals. Fintech followed closely behind, securing $40 million in 12 transactions, while e-commerce startups raised $18 million.
Regional overview
Across the Middle East and North Africa region, startups secured a total of $254 million during March, bringing the total for the first three months of the year to $429 million. In addition to Saudi Arabia, the UAE secured remarkable investments with 12 startups raising $39 million in March. Meanwhile, eight startups in Egypt raised $7 million during the same period. This diverse distribution highlights the growing prominence of various regional players in the region’s startup ecosystem.
