September 2024 - Top 5 Most Funded Startups in MENAPT

Total venture capital funding in the MENAPT region (Middle East, North Africa, Pakistan, and Turkiye) has reached US $568.7 million across 77 deals in September 2024, marking a 38% decrease in value compared to the US $914.3 million recorded from 109 deals in the same month last year. However, when observed on a month-to-month basis there has been a notable recovery from August 2024 which saw US $283.6 million in total across 56 deals, with funding value almost doubling in September alongside a 38% increase in the number of deals.

In September 2024, mobility tech comes out twice in the top 5 raising more than US $120 million followed by quantum computing. Other sectors are CloudTech powered by AI and FinTech. Let’s deep dive into what are the top funding rounds for this month.

1. SHIFT| MobilityTech (KSA) | US $82.8 Million (Seed)

Founded in 2017 by Khalid Al-Sulaiman, SHIFT specializes in tech-driven mobility solutions, operating in 57 cities across Saudi Arabia. SHIFT offers a comprehensive suite of services, including car rentals, delivery services, logistics solutions, and smart mobility services with a fleet of over 12,000 vehicles.

In September 2024, SHIFT raised US $82.8 million from Merak Capital in its Seed round whose funding aligns with Saudi Arabia's Vision 2030 objectives, aiming to foster growth and diversification in sectors like tourism, transportation, and logistics. This new investment will fuel ShIFT's expansion and innovation, helping to speed up the development of its smart mobility solutions. The funding will also enhance ShIFT's capacity to cater to its growing customer base and expand its operations throughout the Kingdom.

2. Quantum Source| Quantum Computing (Israel) | US $50 Million (Series A)

Founded in 2021 by Oded Melamed, Gil Semo, Dan Charash, and Professor Barak Dayan, Quantum Source is a quantum computing company backed by two decades of research at the Weizmann Institute of Science and built upon recent breakthroughs in photonic technologies. Quantum Source is making quantum computing a practical reality with powerful, cost-effective, and practical photonic quantum computers. These computers leverage the principles of quantum mechanics to perform calculations beyond the capabilities of classical computers, utilizing photons (particles of light) as quantum bits, or qubits, which allows for repeatedly generating multiple photonic qubits using simple optical fibers.

In September 2024, Quantum Source raised US $50 million in a Series A funding round led by Eclipse, bringing its total fundraising to US $77 million. The capital will be allocated to improving the company's engineering abilities and hastening the market launch of their quantum solutions.

3. Qodo | CloudTech, AI (Israel) | US $40 Million (Series A)

Founded in 2022 by Itamar Friedman and Dedy Kredo, Qodo (formerly known as CodiumAI) focuses on AI-powered code integrity solutions that help developers write, test, and review code within integrated development environments (IDEs) and Git. Qodo's main product is its generative AI code integrity platform, which has been adopted by over 1 million developers and multiple Fortune 100 companies.

In September 2024, Qodo raised US $40 million in a Series A funding round led by Susa Ventures and Square Peg, bringing its total funds raised to US $50.6 million. The investment comes as Qodo is broadening its array of AI-driven tools, creating new features and providing developers with innovative solutions designed to ensure strong and dependable code across the entire development process with plans to extend its service to also test the code from the user interface, for example.

4. Syarah | Marketplace, E-commerce, MobilityTech (KSA) | US $40 Million (Series C)

Founded by Salah Sharef and Fayez Al-Anazi in 2015, Syarah is an online marketplace for buying and selling cars in Saudi Arabia. Its platform allows consumers to browse and purchase both new and used cars directly from sellers, without intermediaries, offering features like daily price updates, car inspection reports, and a 10-day refund guarantee for used cars.

In September 2024, Syarah closed a Series C funding round of US $40 million led by Artal Capital, in addition to its US $20 million in debt financing from Partners for Growth, bringing its total funds US $83.3 million. The investments are dedicated to Syarah's current expansion strategies, reinforcing its status as a frontrunner in Saudi Arabia's used car market as they enhance their offerings and broaden their services.

5. FlapKap| FinTech (UAE) | US $34 Million (Pre-Series A)

Founded in 2022 by Ahmad Coucha (CEO), Khaled Nassef (CTO), Sherif Bichara, and Kunal Harisinghani, FlapKap is a FinTech providing financing solutions to e-commerce businesses and consumer-facing industries like retail and restaurants. It offers, AI-powered insights to help businesses optimize their advertising spend, revenue-based financing with flexible payment terms to ensure sustainable growth without cash constraints, and instant funding solutions leveraging trade receivables as collateral.

In September 2024, FlapKap raised US $34 million in its Pre-Series A round led by BECO Capital, bringing its total fundraising to US $38.8 million. The funds are being channeled towards FlapKap’s operations in the UAE and GCC region, investing more resources to support SMEs and enabling them to fully realize their growth potential. The company is also upgrading its technology infrastructure to introduce trade finance products tailored specifically for B2B businesses.