Funding Trends in Startups Across Africa and the Middle East - Week 29, 2025 (Infographic)
In the dynamic world of technology, funding is a crucial factor driving innovation and growth. Let's explore the current trends in tech funding across Africa, the Middle East and North Africa (MENA), and beyond.
Africa
The African tech landscape is showing a strong recovery, with startup funding surpassing $1 billion in the first half of 2025. This surge is attributed to equity investments and debt funding across countries like Egypt, South Africa, Nigeria, and Kenya.
Egypt, in particular, has emerged as a major player, with a 130% increase in funding compared to 2024, totaling $330 million. Key deals include proptech startup Nawy raising $75 million. South Africa's funding was steady, with $191 million raised across diverse sectors like insurtech and medtech. Nigeria saw investments in fintech, cleantech, and construction technology, despite a drop from 2024 levels.
Middle East and North Africa (MENA)
MENA startup funding reached an impressive $2.1 billion in the first half of 2025, with Saudi Arabia leading the charge. Debt financing accounted for 44% of the capital raised. The Kingdom saw a significant increase in funding activity, with $860 million raised in the first half of 2025, marking a 116% annual jump.
Notable deals include Cato Networks in Israel raising $359 million for its AI-powered SASE technology, Ninja in Saudi Arabia securing $250 million and becoming one of the Kingdom's newest tech unicorns, and Wittify.ai in Saudi Arabia raising $1.5 million for its conversational AI platform.
Beyond MENA and Africa
While specific trends outside MENA and Africa are not detailed in the provided information, the overall global trend has seen caution with a tightening in deal flow and late-stage capital struggles, especially in the first quarter of 2025.
Key Investors
Investors playing a significant role in these funding rounds include Riyad Capital, which led the funding for Ninja in Saudi Arabia, Alex Angels supporting the seed funding round for AgriCash in Egypt, and angel investors from Saudi Arabia investing in Wittify.ai.
Notable Funding Rounds
- The round for Xtend was co-led by Aliya Capital Partners and Protego Ventures, with the defence-tech startup based in Israel raising another $30 million, bringing its Series B total to $100 million.
- Lucidya, a customer experience management platform based in Riyadh, secured $30 million in a Series B round.
- Yasmina, an embedded insurance startup based in Riyadh, secured $2 million in seed funding.
- In Casablanca, Ora, the parent company of food delivery app Kooul and digital wallet Ora Cash, secured $7.5 million in Series A funding, led by Azur Innovation Fund.
- South African-based MoneyBadger bagged $400k in pre-seed funding.
- In Egypt, savings app Palm raised over $1 million (exact amount undisclosed) in a pre-seed round, led by 4DX Ventures.
- The securing of $30 million by Lucidya signals Saudi Arabia's growing appetite for data-driven customer intelligence.
- Another Saudi startup, Wittify.ai, announced $1.5 million in pre-seed funding.
- Ora now has nearly $12 million in local funding since early 2023, reflecting growing consumer appetite for bundled convenience in Morocco's startup scene.
- Lucidya's Series B round is a defining moment for the company and the region's AI-powered SaaS sector.
- The round for Xtend was led by Impact46, with backing from Aramco’s Wa’ed Ventures, Takamol Ventures, SparkLabs, Rua Growth Fund, and ARG.
- The round for Yasmina was led by Scene Holding, with support from Access Bridge Ventures and Arzan VC.
- Q3 is seeing funding flow into AI, fintech, and consumer platforms across various cities in the region, including Riyadh, Casablanca, and Cairo.
As we move forward, it's clear that the tech funding landscape in Africa and MENA is experiencing significant growth, driven by strategic investments in fintech, AI, and other emerging technologies. This trend is expected to continue, fostering innovation and driving economic growth in these regions.
- The financial growth in technology sectors of Africa is evident, as startup funding has surpassed $1 billion in the first half of 2025, with countries like Egypt, South Africa, Nigeria, and Kenya receiving equity investments and debt funding.
- Saudi Arabia is a leading player in tech funding within the Middle East and North Africa (MENA) region, with a 116% annual increase in funding activity, reaching $860 million in the first half of 2025.
- Beyond MENA and Africa, the global tech funding trend in the first quarter of 2025 has shown caution with a tightening in deal flow and late-stage capital struggles, but the overall outlook indicates continuous growth in AI, fintech, and other emerging technologies, fostering innovation and driving economic growth.
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