By Lucidity Insights Research Team • March 20, 2025
GCC Startup Funding Hits $1.2B in February 2025
February 2025 marks a dramatic rebound for GCC’s venture capital market, with total startup funding skyrocketing 426.5% YoY to $1.2B—even as deal activity fell from 114 rounds in 2023 to just 64 in 2025. This shift reinforces the trend toward fewer but larger investments, with average deal size recovering to $10.37M.
Leading this month’s funding wave is Saudi-based BNPL giant Tabby, raising $160M in Series E led by Blue Pool Capital, positioning itself for a regional IPO. UAE’s Flow48 ($69M) followed, securing Series A funding from Breega to scale revenue-based financing solutions for SMEs across MENA and South Africa.
The region’s edtech push is gaining momentum, with Saudi’s Ula.ME ($28M) driving AR/VR-powered education, backed by Rua Growth Fund. Meanwhile, UAE’s Merit Incentives ($28M) is expanding digital engagement solutions, boosting its corporate rewards ecosystem via funding from Alistithmar Capital. Rounding out the list is TGC ($10M), a Web3-driven cloud gaming startup, leveraging blockchain for frictionless global gaming.
With Saudi Vision 2030 and PIF investments fueling innovation, GCC’s funding landscape is evolving, favoring high-potential startups with strong market positioning. Want deeper insights into GCC’s startup growth? Visit LucidityInsights.com for exclusive funding trends and ecosystem data.
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The State of Fintech in the Middle East
With 1,500+ fintechs, $4.2B in 2023 funding, 7 IPOs, 30+ M&A exits, and the rise of unicorns and superapps, the Middle East’s fintech sector is transforming into a global powerhouse. Discover the key players, emerging trends, and market forces shaping the future of finance in MENAT.
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