GCC Startups Shine in February 2025: Funding Highlights and Trends

After a 56% decrease in year-to-date total deal value from US $518.6 million as of February 2023 to US $228.4 million as of February 2024, 2025 saw a dramatic rebound, with deal value rising to US $1,202.5 million—an increase of 426.5%. While the number of deals declined from 114 as of February 2023 to just 64 as of February 2025, this reflects the continued shift towards higher-value, lower-risk investments, emphasizing quality over quantity in the maturing GCC VC market.

The downturn in 2024 was driven by sector-specific challenges and broader regional factors. Market saturation in sectors like real estate, especially in Dubai, contributed to a slowdown, and there was a reduction in late-stage funding, with only 11 out of 41 deals in February 2024 beyond seed rounds, compared to 11 of 34 in February 2025.

The GCC venture capital ecosystem has shown strong recovery in 2025, reflected interesting dynamics to average deal size. In February 2023, the average deal size stood at US $10.11 million, before dropping dramatically to US $2.54 million in February 2024, a year marked by investor caution and strategic recalibration.

This transformation is clearly illustrated by examining flagship deals across this three-year period. While February 2024's largest investment was Flare Network's relatively modest US $35 million venture round, both surrounding years featured substantially larger commitments: Floward and Nana secured impressive rounds of US $156 million and US $133 million respectively in February 2023, while Tabby commanded a formidable US $160 million in February 2025.

By February 2025, the average deal size rebounded remarkably to US $10.37 million, slightly surpassing even the 2023 figures. This swift recovery signals renewed confidence in the region's innovation potential, which is particularly noteworthy given global economic headwinds. For founders, this resurgence may suggest a more favorable fundraising environment for 2025, especially for startups with clear paths to profitability and market leadership.

These trends highlight the efforts of GCC governments to foster a supportive environment for startups, with initiatives like Saudi Vision 2030 and the UAE's National Innovation Strategy creating a solid foundation for investment. Public investment funds like Saudi Arabia's Public Investment Fund (PIF) are actively fueling the VC landscape, so it's no surprise that Saudi Arabia led the GCC with 13 of the 34 venture deals in February 2025, underscoring its growing economic influence in the region.

Let’s take a look at the top 5 funding rounds of February 2025 in GCC.

#1 - Tabby (KSA) | FinTech | US $160 Million Series E

Founded by Daniil Barkalov, Hosam Arab in 2019, Tabby is MENA’s leading financial services and shopping app. Tabby recently acquired Tweeq, a Saudi-based digital wallet, has almost doubled its annualised transaction volumes to over US $10 billion  since 2023. It has introduced Tabby Card for flexible payments beyond checkout and Tabby Plus, a subscription program. Additionally, it has evolved its core buy now, pay later offering with longer-term payment plans, Tabby Shop to help users find the best deals, and Tabby Care, a buyer protection program.

In February 2025, Tabby raised US $160 million in a Series E round led by Blue Pool Capital and Hassana Investment Company, bringing its total funds to US $1.9 billion. The funds will be primarily used to accelerate the expansion of Tabby’s financial services, including digital spending accounts, payments, cards, and money management tools, while advancing Saudi Arabia’s Vision 2030 goals by driving the Kingdom’s cashless economy forward.

#2 - Flow48 (UAE) | FinTech | US $69 Million Series A

Founded by Idriss Al Rifai and Karim Khattar in 2022, Flow48 is a leading fintech transforming SME lending across emerging markets. Flow48 is centralising critical data insights in a region where SME operational data is fragmented. By aggregating data on payments, operational behaviors, and sector-specific performance, Flow48 has secured a large and scalable debt facility from sophisticated financial institutions, strengthened its market presence in South Africa while cementing its position in the UAE, and introduced new products for SMEs.

In February 2025, Flow48 secured US $69 million in a Series A round led by Breega, bringing its total funding raised to US $94 million. With this new funding, Flow48 is set to further expand in its two key markets and replicate its solution in Saudi Arabia, the largest economy in the MENA region, with a sizable yet underdeveloped SME ecosystem. The company will also continue to add new features to enhance its platform capabilities, leveraging alternative data sources and advanced risk assessment tools to deliver tailored financial solutions to SMEs.

#3 - Ula.me (KSA) | EdTech | US $28 Million Series B

Founded by Alaa Jarrar in 2022, Ula.me is a rising EdTech platform designed to provide a personalized learning experience by analyzing students’ performance and individual needs, ensuring more efficient and effective education. The company aims to integrate Augmented Reality (AR) and Virtual Reality (VR) technologies into its platform to create an interactive and immersive learning environment, making educational content more engaging and stimulating for students.

In February 2025, Ula.me raised US $28 million in a Series B round led by Rua Growth Fund. With this investment, Ula plans to expand its operations in Saudi Arabia and launch an advanced digital learning platform powered by generative artificial intelligence (AI).

#4 - Merit Incentives (UAE) | IT | US $28 Million Series B

Founded by Julie Leblan and Thrishan Padayachi in 2016, Merit Incentives is a rewards and loyalty platform focused on customer and engagement technology. In 2023, Merit experienced a cumulative growth rate exceeding 60% and a substantial increase in its user base by 80%, launching more than 100 instances across 20 additional countries, with a global operation across over 160 countries and collaborating with upwards of 6,000 brands like like Riyad Bank, Vodafone, Adidas and Amazon.

In February 2025, Merit secured US $28 million in a Series B round led by Alistithmar Capital and Tech Invest Com, bringing its total funds raised to US $45 million. The investment will help Merit ex p and its presence in key markets like the KSA, UAE, and Egypt, while also improving its technology infrastructure. The company also plans to roll out an "Agent as a Service" model, leveraging AI tools to boost business engagement and enhance loyalty strategies.

#5 - The Game Company (UAE) | Blockchain, Gaming | US $10 Million Initial Coin Offering

Founded by Osman Masud in 2022, The Game Company is an AI-driven cloud gaming platform that leverages Web3 technology to provide a seamless gaming experience. It aims to break down barriers related to connectivity, latency, and market economics, offering gamers worldwide the ability to participate, play, and earn in a multi-role ecosystem. The Game Company is available globally, allowing users to play games like Call of Duty, Fortnite, and Rocket League from any device without specific hardware or software requirements.

In February 2025, The Game Company raised US $10 million in its initial coin offering led by BullPerks, SingularityDAO, and Telcoin, bringing its total funds to US $15.5 million after its pre–seed round later that month. The funding will be used to improve its platform and integrate it into both web3 and web2 ecosystems to challenge traditional cloud gaming with blockchain innovation.