What MENA Startup Funding Rounds April‑May 2025 Say About VC Maturity

Startup activity in the Middle East and North Africa (MENA) surged across April and May 2025, with MENA startup funding rounds April-May 2025 totaling US$517.4 million across 70 deals. This signals renewed investor confidence and structural shifts in sectoral and geographic trends, underscoring the resilience of the region’s startup ecosystem.

April 2025: Equity Resurgence and Regional Shifts

In April, MENA startups secured US$228.4 million across 26 funding deals—a 105% increase from March and nearly triple the amount raised in April 2024. Notably, this upswing occurred without any debt-financed rounds, pointing to a return in equity-based investor confidence. Saudi Arabia led regional funding during the month, thanks largely to iMENA Group’s massive US$135 million pre-IPO round, which propelled the kingdom to the top of the charts with US$158.5 million raised. The UAE followed with US$62 million across nine startups, while Morocco emerged as an unexpected contender in third place, raising US$4 million. Egypt, traditionally a strong player, saw more modest figures, securing just US$1.5 million from four startups.

Sector-wise, fintech remained dominant, attracting US$44 million across seven deals. Traveltech gained visibility thanks to HRA Experience’s funding, while e-commerce startups brought in US$2.5 million. Interestingly, SaaS startups, which had been relatively quiet in the first quarter, re-emerged with US$1.8 million across three deals. The business-to-business (B2B) model proved most attractive, drawing in US$180 million across 12 deals, while B2C and hybrid B2B/B2C startups raised US$43 million and US$6 million respectively.

May 2025: Fintech Leads, AI Lags

Despite a surge in political and media attention around artificial intelligence, particularly following a visit by U.S. President Trump and leading AI executives, investment into AI startups lagged behind expectations. The sector attracted only US$25 million across two deals, underscoring a widening gap between ecosystem narrative and actual investor behavior.

Fintech once again led sectoral funding in MENA startup funding rounds April-May 2025 with US$86.5 million raised across 14 deals. Thanks to Nawy’s round, proptech moved into second place, followed by mediatech with US$32 million and contech with US$28 million. While early-stage deals dominated April, May continued that trend: only one pre-Series C round was reported, while early-stage activity accounted for over US$161 million in funding.

The dominance of B2B startups remained consistent, with such ventures attracting US$157 million across 29 deals. Hybrid B2B/B2C models brought in US$79 million, and B2C startups collectively secured US$53 million.

MENA Startup Funding Rounds April‑May 2025: A Maturing VC Landscape

Looking across both months, the data paints a picture of a maturing MENA venture capital scene. The MENA startup funding rounds April-May 2025 reveal a maturing market: equity reliance, hub diversification, and sustained B2B focus. As scalable models attract capital, the ecosystem moves beyond hype toward sustainable growth.