Startups in the Middle East and North Africa (MENA) region raised $206 million in the last month of 2021, a decrease on the previous month of 27.5 percent but 215 percent up on December 2020, according to entrepreneurship platform Wamda.

Saudi Arabia was a top receiver of funds. The kingdom, along with the UAE and Bahrain accounted for the most venture capital investment at 88 percent, with Saudi receiving the most investment at $99.5 million.

Wamda said the majority of the funding was led by growth-stage funding rounds, including the UAE’s e-commerce enabler startup Opontia’s $42 million Series A round, and Saudi Arabia’s B2B marketplace Sary’s $75 million series C funding round.

Bahraini foodtech startup Calo raised $13.5 million, while UAE food delivery app Grubtech raised $13 million and Jordan-based gaming startup Tamatem $11 million.

In exits, Egyptian home services marketplace was acquired by South Africa’s SweepSouth, while B2B e-pharmacy marketplace One Platform was acquired by Jordanian-born and US-headquartered Aumet.

E-commerce was the sector that received the greatest amount of funding with Saudi Arabia’s Sary  raising $75 million in series C funding.

E-commerce startups attracted $119.5 million across five deals - 58 per cent of the total deal value. Foodtech was the second-highest funded sector with $24 million raised across four deals, followed by fintech which raised $19 million across eight deals.

Of the 44 deals, 12 received overseas funding and US-based investors were the most active foreign investors in MENA-based startups followed by Germany-based investors. Saudi Arabia had the highest number of investors in the region with Saudi investors investing in 23 deals outside the kingdom.

All-male founding teams received the vast majority of VC funding, at $197 million across 38 deals, versus $3 million to all female founder teams, at just $3 million, or 1.6 of the total, down from five percent the month before.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)

imogen.lillywhite@lseg.com

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2022