The startup ecosystem in MENA experienced a remarkable surge in activity during February 2025, with startups securing a total of US$494 million across 58 deals.
This impressive figure marks a nearly fivefold increase compared to the investment raised in the same month last year.
According to Wamda, debt financing accounted for 90% of total investment in January. However, February saw a sharp decline in debt financing, which comprised just 15% of the month’s total investment.
When excluding debt from both months, February recorded a 371% month-on-month (MoM) increase in investment activity.
LEAP propels Saudi Arabia to the top
Saudi Arabian startups led the region in fundraising, raising US$250.3 million across 25 deals.
This growth was largely driven by the LEAP 2025 conference, where numerous startups announced their secured investments.
The UAE followed in second place, with 15 startups collectively raising US$203.5 million.
Egypt ranked third with US$27.5 million secured by eight startups, while Oman returned to the top four, with two startups raising US$6 million.
Fintech remains the dominant sector
The fintech sector led all industries in fundraising, securing US$274 million across 15 deals.
Insurtech followed in second place with US$55 million raised across two deals, while the logistics sector ranked third, attracting US$28.5 million through four deals.
Investors focus on later-stage deals
February also saw an increase in later-stage investments, with Tabby raising US$160 million in Series E funding. Meanwhile, Ula and Merit Incentives secured US$28 million each in Series B funding.
Additionally, Taager and Khazna closed their pre-Series B rounds, raising US$6.7 million and US$16 million, respectively.
Despite this, the majority of investments by deal count were at the pre-seed stage, where 15 startups collectively raised US$22 million.
Startups at the Series A stage received US$158 million across seven rounds, while 10 seed-stage startups raised US$27.8 million.
B2B startups attract the most funding
Startups operating under the business-to-business (B2B) model were the most funded in February, securing US$191.6 million through 33 deals.
Business-to-consumer (B2C) startups raised US$138.5 million across 18 deals, while six startups operating in both domains secured US$164 million.
Gender gap persists in funding
As in previous months, startups led by male founders attracted the bulk of investment, raising US$429 million—87% of the total investment for February.
Meanwhile, startups founded by women secured just US$200,000, with the remaining amount going to startups co-founded by both genders.
Featured image credit: edited from freepik
