MENAPT Startups in Focus: Startup Funding Trends In August 2023 VS August 2024

In August 2024, total funding in the MENAPT region reached US $283.6 million across 56 deals, a sharp decline from the US $706.7 million raised through 102 deals during the same month last year. This represents a 60% drop in funding and a 45% decrease in deal count year-on-year. Additionally, the number of deals fell from 72 in July to 56 in August, though this was offset by a 142% surge in total deal value, driven by larger, more mature funding rounds.

Despite the year-on-year contraction, the focus of these investments highlights sectors aligned with global technological innovation. Leading the funding landscape were two SpaceTech startups, a sector that has gained attention for its high-growth potential. Orbitworks took the top spot with the only megaround of the month, raising more than the next four companies combined. Following SpaceTech were key sectors such as FinTech, Electric Mobility, and Super Computing. 

#1 - Orbitworks| SpaceTech (UAE) | US $100 Million (Corporate Round)

Orbitworks is a joint venture between Abu Dhabi-based Marlan Space and Loft Orbital, expediting efficient satellite deployments by securing components for its first ten satellites looking forward to an initial launch by early 2026. Orbitworks plans to leverage the UAE's sophisticated AI ecosystem by facilitating space-based application deployments for AI companies and research entities, positioning itself as a key contributor to the UAE's aspirations in the global space sector.

In August 2024, Orbitworks received an initial investment of US $100 million, which it plans to produce up to fifty 500 kg satellites annually, focusing on low-earth orbit (LEO) constellations. It is also actively seeking professionals in hardware, software, test engineering, and various other aerospace fields from both domestic and international talent pools.

#2 - Plan-S | SpaceTech (Turkey) | US $40 Million (Venture - Series unknown)

Established in 2021 as the satellite and space technology division of Kontrolmatik Enerji Ve Muhendislik AS, Plan-S focuses on innovation and commercialization in satellite technology with its Connecta IoT System and Earth Observation Satellites. Plan-S enhances efficiency, security, and sustainability across various sectors like energy, agriculture, transportation, environment, maritime, and finance providing high-resolution imagery and data for environmental monitoring, disaster management, and urban planning.

In August 2024, Plan-S raised US $40 million in a funding round led by Ziraat bank, bringing the company’s valuation to US $400 million. The new funds will be used to expand Plan-S’s fleet to 22 satellites by July 2025 as it aims to exceed 200 satellites by 2030 in line with Turkey’s national space strategy announced in 2022, focusing on astronaut training and the development of a domestic spaceport by the end of the decade.

#3 - Yuze Digital | FinTech (UAE) | US $30 Million (Seed Round)

Founded in 2022 by Rabih Sfeir, Yuze Digital provides digital business banking solutions to startups, micro, and small businesses in the UAE. Yuze Digital enables simple money transfers, offers physical and virtual company cards for managing business expenses, allows businesses to create, customize, and send invoices with payment links, provides real-time tracking and detailed breakdowns of spending by merchants, categories, and countries, and supports payments to major billers in the UAE with instant processing and notifications.

In August 2024, Yuze Digital raised US $30 million in a seed round led by Osten Investments as Yuze plans to broaden its reach beyond the UAE, tackling the challenges SMEs and freelancers face in accessing essential financial resources. Its aim is to serve one million SMEs and professional clients over the next five years.

#4 - E Daddy | Electric Mobility (UAE) | US $15 Million (Seed Round)

Founded in 2023 by Mansoor Ali Khan Abdul Buhari and Yasmeen Jawahar Ali, E Daddy is an electric vehicle (EV) manufacturer based in the UAE, and the first company to fully produce two-wheeler EVs within Dubai. Set to launch in Q1 2025, E Daddy's electric motorcycles are designed to produce zero tailpipe emissions and feature self-diagnostic systems, along with advanced battery technology equipped with a double-layer cooling system.

In August 2024, E Daddy secured US $15 million in a seed round, with key investments from Kabeer Khader and Kabeen Khader, the CEO and COO of Euroblast Middle East LLC, respectively. The funds will be used to prepare for the launch of their first electric motorcycle line in the UAE, with plans to expand into other GCC markets shortly thereafter.

#5 - LightSolver | Super Computing (Israel) | US $11 Million (Venture - Series unknown)

Established in 2020 by PhD physicists Dr. Ruti Ben Shlomi and Dr. Chene Tradonsky from the world-renowned Weizmann Institute, LightSolver is an innovative tech company specializing in quantum-inspired computing solutions. Its quantum-inspired optical solver leverages coupled lasers to perform computations for complex multi-variable problems, simulating the capabilities of quantum computing to address optimization challenges in industries such as logistics, finance, and energy.

In August 2024, LightSolver secured €12.5 million (approximately US $13.7 million) through a grant and venture round from the European Innovation Council Accelerator. The company plans to use the funds to commercialize its platform and accelerate its growth in the high-performance computing (HPC) sector.