Startup Wrap: Funding Flows Continue in MENA Amid Iran Conflict

RIYADH: Startups across the Middle East and North Africa region attracted multiple funding rounds last week in various sectors, demonstrating resilience amid market uncertainty triggered by the ongoing conflict involving Iran.

The impact of the war was evident in the first quarter of this year, with startup funding in the region falling to $941 million, a 21.5 percent decline from the previous quarter and a 37 percent drop year on year.

In the first three months of 2026, the UAE led regional funding, raising $652.8 million, followed by Saudi Arabia with $156.7 million and Egypt with $86 million, according to Wamda data. 

Startups in Morocco raised $22.6 million over the period, while Bahrain attracted investments amounting to $22 million.

In March, the MENA startup ecosystem secured $48.3 million, representing an 85 percent drop from February and a 62 percent annual fall.

The UAE maintained its position as the leading funding hub in the region, with startups raising $36.8 million, followed by Saudi Arabia at $10.2 million. 

Jozo closes $2.2m seed round

Jozo, a property tech startup based in Saudi Arabia, has closed a $2.2 million seed funding round, led by Sheikh Hamad Bin Saedan Real Estate Co. as a strategic partner.

The fresh capital raised will be deployed to expand operations and upgrade Jozo’s technology platform, as the company aims to solidify its foothold in Saudi Arabia’s rapidly growing digital real estate investment sector, the company said in a press statement. 

Founded in 2024 by Turki Al-Shlail and Fahad Al-Mansour, Jozo specializes in real estate tokenization, creating advanced technology solutions that enable the digital representation and fractional ownership of property assets in compliance with Saudi Arabia’s regulatory framework. 

INVIA raises $1.2m

INVIA, a fintech startup based in Egypt, has raised $1.2 million from angel investors and strategic supporters. 

In a press statement, the company said that the newly injected funding will be used to support product development, expand engineering and data capabilities, and scale customer acquisition across Egypt’s underserved SME segment. 

Founded in 2023 by Yehia Ashour, Ahmed Zeinhom and Omar Aboulmagd, INVIA specializes in providing an AI-powered financial operating system for SMEs.

Looking ahead, the company plans to evolve beyond financial management into a comprehensive operating system. It also intends to integrate HR, POS, and CRM functionalities, ultimately delivering a single unified platform for managing entire businesses.

Sufra AI secures $100,000

Bahrain-based startup Sufra AI, which is specialized in the food and beverages sector, has raised $100,000 in a pre-seed investment from Snoonu Startup Factory.

According to a press statement, Snoonu Startup Factor is a new initiative aimed at supporting early-stage founders and accelerating startup growth across Qatar and the wider region.

The initiative aligns with Qatar National Vision 2030 and will be headquartered in the newly established Snoonu Technology Park, establishing it as a key hub for innovation and startup growth.

Founded by graduates in Carnegie Mellon University in Qatar, Sufra AI allows diners to access personalized menus through QR codes. It delivers tailored recommendations, smooth ordering, and integrated payments, while equipping restaurants with real-time insights into customer behavior.

Falak Holding acquires majority stake in Kernel

Falak Holding, a Saudi-based venture-building and investment platform, has acquired a majority stake in Kernel for AI, an artificial intelligence solutions provider operating in the Kingdom and Jordan.

Through the acquisition, Falak Holding aims to integrate Kernel’s technical expertise with its entrepreneurial and investment ecosystem, opening new avenues to support AI-driven startups, accelerate product development, and enable organizations to benefit from AI solutions practically and effectively, according to a press statement.

Under the agreement, the value of the deal was not disclosed, Kernel will continue to operate independently as part of Falak Holding.

It will gain access to Falak’s extensive investment network and entrepreneurial platform to drive innovation and develop new technology companies.

“Artificial intelligence is one of the most important drivers of technological and economic transformation globally. Our acquisition of Kernel aligns with our vision to strengthen Falak’s capabilities in this space and build an integrated ecosystem that combines investment, innovation, and the practical application of advanced technologies,” said Adwa Al-Dakheel, founder and CEO of Falak.

Abdullah Al-Ghuwairi, founder of Kernel, said that the company was founded to make artificial intelligence a practical tool that companies and innovators can use to build real products and solutions.

He added that joining “joining Falak’s ecosystem opens new opportunities to expand our impact and accelerate the development of AI technologies in the region.”

AVA secures strategic investment

AVA, a Saudi-based fintech, has secured an undisclosed strategic investment from Plug and Play Middle East, following its successful participation in the Plug and Play Fintech Accelerator Programme.

In a press statement, the company said that the newly injected financial assistance will support product development and regional expansion, aligning with the Kingdom’s push toward a 70 percent cashless economy under Vision 2030.

Founded in 2019, AVA specializes in Internet-of-Things-enabled payment infrastructure aimed at digitizing the unattended retail and mobility sectors. Its platform combines SoftPOS applications, QR-based payment gateways, and smart IoT switches, allowing physical devices to accept seamless contactless payments.