50 most-funded MENA startups raise $3.2bln in 2022

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The 50 most-funded startups in MENA region have raised $3.2 billion in funding, up from $3 billion in 2021, according to a Forbes Middle East report.

Forbes Middle East has released its annual list of MENA's Top 50 Most-Funded Startups for 2022, celebrating the mission-driven young businesses attracting investor attention.

Of the 50 startups, 19 are newcomers to the ranking. One newcomer penetrated the top 10 -- regulated crypto-asset exchange Rain Management. The Bahrain-headquartered startup ranked sixth after raking in $118 million.

The startups had to have been founded no earlier than 2015 and have raised a minimum of $20 million in total funding to be considered for the list. Startups that were acquired, merged, went public on stock markets, or didn't provide sufficient data on funding and investors, were excluded. Cut off for funding was November 10, 2022, said a statement.

Agri-tech business Pure Harvest Smart Farms climbed from second place in 2021 to secure the top spot this year, having raised $387 million in total funding. In June 2022, the UAE-based startup formed an alliance with Al Dahra Group, increasing the total operating capacity under its management to over 22 hectares. Buy-now-pay-later Fintechs Tabby and Tamara retained their top five positions at second ($275 million) and third place ($216 million), respectively.

Fintech companies dominated the funding landscape in 2022, with 21 listees attracting $1.3 billion in total funding. E-commerce (10) and delivery and mobility (four) made up the remaining top three most-populated sectors, raising $576.7 million and $299.6 million, respectively.

The startups on the 2022 list represent nine MENA countries. For the third consecutive year, the UAE was as the country with the most active startup ecosystem, with 18 startups raising $964 million in total funding. Saudi Arabia is home to 12 startups raising $946.7 million, while 11 startups are headquartered in Egypt, raising $508.5 million.

The ranking features 112 cofounders. Only 10 startups are led by solo founders. Noureddine Tayebi is one member of this minority. His ride-hailing, delivery, and payment platform Yassir ranked fifth after becoming the most-funded startup in North Africa with $193.25 million in total funding.

Beyond securing millions in capital, many new entrants also cemented valuable partnerships, future-proofing their offerings in the market. For example, Egyptian digital payment solutions platform PaySky partnered with Visa to launch the Yalla Card and Yalla Super App in the Middle East. Meanwhile, proptech Huspy acquired three brokerages on its home turf of the UAE: Home Matters, Just Mortgages, and Finance Lab, the report said.