RIYADH: Startups across the Middle East and North Africa secured $289 million across 44 deals in May, marking a 25 percent rise from April and a 2 percent increase year-on-year.
While equity dominated the deal flow, debt financing represented just 9 percent of the total.
Egypt led regional fundraising with $125 million, bolstered by Nawy’s $75 million round and seven other deals totaling $50 million.
The UAE followed with $86.7 million from 14 deals, while Ƶ came third with $69 million from 15 transactions.
Kuwait made a rare appearance in the top four, with two startups securing a combined $6 million.
Despite the hype around artificial intelligence, fueled by a high-profile visit from US President Trump and Silicon Valley executives, funding in the sector was limited.
AI startups attracted just $25 million across two deals, underscoring a gap between public narrative and private capital flows.
Fintech maintained its lead among sectors, drawing $86.5 million through 14 rounds. Property technology followed, lifted by Nawy, while media technology firms raised $32 million.
Construction technology firm WakeCap raised $28 million, one of the few notable later-stage rounds.
Early-stage funding dominated the month, accounting for $161 million, with just one pre-series C deal recorded at $12 million.
Business-to-business startups continued to command investor attention, raising $157 million across 29 deals.
Hybrid startups secured $79 million, while B2C companies collected $53 million.
The gender gap in startup funding persisted, with male-founded teams receiving 82 percent of capital, compared to 7 percent for women-led firms and 11 percent for mixed-gender teams.
Stride Ventures doubles down on GCC with Saudi expansion
Stride aims to triple its assets under management in the GCC by 2026. Stride
Stride Ventures, a global venture debt firm, is deepening its presence in the Gulf Cooperation Council, centering its growth strategy on Ƶ.
The firm announced the opening of a second regional office, the doubling of its local team, and the release of the inaugural Global Venture Debt Report 2025, developed in partnership with Kearney.
The report reveals that the GCC’s venture debt market has grown at a compound annual growth rate of 54 percent—quadruple the global average—reaching $500 million in 2024 from $60 million in 2020.
As part of its regional ambitions, Stride aims to triple its assets under management in the GCC by 2026 and is targeting $500 million in commitments over the next three to five years.
“Ƶ is shaping the future of venture capital and private credit with intention and scale,” said Fariha Javed, partner at Stride Ventures, adding: “We are seeing a new generation of founders who understand the value of non-dilutive capital to scale responsibly and an equally ambitious set of investors in the region ready to fuel their growth.”
Javed said that Ƶ is moving from being a capital source to becoming a capital magnet.
Badir Fund backs Shorooq’s Nahda Fund II to unlock SME credit
The UAE-based Arab Fund for Economic and Social Development has committed capital to Shorooq Partners’ Nahda Fund II through its Badir Fund for small and medium-sized enterprises.
Founded in 2017, Shorooq is known for offering structured financing to growth-stage companies.
Recent recipients include fintech firm Abhi and self-storage platform The Box, which received $15 million and $12.5 million in debt financing, respectively.
“This collaboration with the Badir Fund is a significant step towards empowering SMEs in the Arab region,” said Nathan Kwon, partner and credit head at Shorooq.
“By combining our expertise in structured financing with the Badir Fund’s commitment to economic development, we can provide SMEs with the necessary resources to thrive.” Essam Al-Quorashy, secretary general of the Badir Fund.
“This investment from the Arab Fund will unlock vital growth opportunities for small businesses, promote their growth and foster financial inclusion of underserved segments across the Arab region,” Al-Quorashy added.
ShipBee secures $235k to digitize logistics in Qatar
The fresh capital will fuel ShipBee’s team expansion, product development, and regional scaling. ShipBee
Doha-based logistics startup ShipBee has closed a $235,000 pre-seed round, valuing the company at $1 million.
The funding was led by Qatar’s GrowthX, with contributions from two angel investors and $40,000 in founder capital.
Founded in March 2024 by Tamer Raafat and Amer Azani, ShipBee provides a tech-enabled logistics platform integrating a digital marketplace, AI-powered software, mobile applications, and international express shipping.
The funds will be used to grow the team, enhance the product, and expand regionally.
“This funding empowers us to scale our vision of simplifying logistics through cutting-edge technology,” said Tamer Raafat, co-founder and CEO.
“ShipBee’s vision is to build a smart logistics ecosystem in Qatar and MENA using the power of AI and new technologies.” Hamad Al-Hajri, CEO and founder of GrowthX and Snoonu.
“ShipBee perfectly aligns with Qatar’s strategic goals by combining innovation with logistics excellence. I firmly believe ShipBee has the potential to become a leading technology-driven logistics platform, both regionally and globally,” Al-Hajri added.
Kumulus Water raises $3.5m to scale atmospheric water tech
Kumulus was founded by Iheb Triki and Mohamed Ali Abid. Kumulus
Kumulus Water, a startup headquartered between France and Tunisia, has secured $3.5 million in seed funding to scale its off-grid water production systems.
The round included support from Bpifrance, through the France 2030 SGPI initiative and the Ile-de-France Region, as well as regional VCs Khalys Venture, Flat6Labs, PlusVC, and beverage company Spadel.
Several family offices and founders from Europe and North Africa also participated.
Co-founded by Iheb Triki and Mohamed Abid, Kumulus develops atmospheric water generators that extract drinking water from air humidity — offering infrastructure-free solutions for underserved communities.
The new capital will fund the launch of its industrial-grade Kumulus Boks machines and expand operations across France, Spain, and Tunisia, with Ƶ identified as the next market entry point.
EightClouds closes $20m round early, eyes consumer sector growth
EightClouds is concentrating its activities in the food, beverage, and hospitality sectors. EightClouds
UAE-based alternative investment firm EightClouds has completed its $20 million capital raise ahead of schedule, closing the round in 11 months instead of the planned 24.
The firm plans to deploy the funds into strategic acquisitions and initiatives targeting scalable, consumer-focused brands across the Gulf.
EightClouds, which focuses on transforming capital into economic prosperity, is concentrating its activities in the food, beverage, and hospitality sectors.
These industries, the firm notes, are driven by evolving consumer preferences and digital innovation.
The company’s expansion strategy will focus on the UAE and Ƶ, markets it views as primed for rapid growth due to policy support and infrastructure readiness.
Khwarizmi Ventures eyes $120m for second MENA-focused fund
Saudi venture capital firm Khwarizmi Ventures is planning to raise up to $120 million for its second fund, aimed at supporting early-stage startups across the Middle East and North Africa.
The fund will target investments from seed to series A stages and is expected to close by the end of 2025.
Speaking to Alarabiya Business, managing partner Abdulaziz Al-Turki described the regional climate as a “golden opportunity” for early-stage investors.
“The number of unicorns in MENA has grown from zero a decade ago to eight today,” he said, adding: “By 2035, that number could reach 60.”
Khwarizmi Ventures’ strategy is designed to place capital early in companies with strong scaling potential ahead of larger funding rounds.
Edtech startup Taawoni raises $1.6m to expand training platform
Saudi-based education technology company Taawoni has closed a $1.6 million investment round led by M Capital and supported by undisclosed investors.
The startup, founded in 2021 by Aliyah Al-Ghubayn, operates a platform focused on cooperative training and professional development.
Taawoni enables collaboration between universities and employers to deliver co-op training programs that provide students nearing graduation with real-world work experience.
The new funds will be used to drive growth and integrate more deeply into both the education and human resources technology ecosystems across the region. Expansion into new regional markets is also planned.
