Startup Wrap: MENA Startup Funding Rises 202% to $454.7M in May

RIYADH: Startups in the Middle East and North Africa raised $454.7 million across 33 deals in May, a 202 percent monthly increase and a 76 percent annual rise as funding activity showed signs of recovery. 

The increase was largely driven by debt financing, which accounted for 66 percent of total capital raised during the month. 

Even excluding debt deals, startups in the region raised more capital and completed more transactions than in April, pointing to a moderate improvement in investor activity. 

The year-on-year data, however, showed a more selective funding environment. 

While capital deployment rose, the number of deals fell by 57 percent compared with May 2025, suggesting investors are prioritizing larger transactions and later-stage companies amid continued regional and macroeconomic uncertainty. 

The UAE remained the region’s most-funded startup market, attracting $379 million across 15 deals. 

The total was largely supported by Trukker’s $300 million debt financing round, which represented nearly 80 percent of all capital raised in the country during the month. 

Saudi Arabia ranked second, with startups raising $70 million across 11 deals, a 167 percent increase from April. 

Egypt followed with three startups raising a combined $5 million, keeping the country among the region’s active startup ecosystems despite lower funding levels than its Gulf peers. 

By sector, logistics led in funding value, supported by Trukker’s financing, with $300 million raised during the month. 

Fintech ranked second with $105.7 million across five deals, followed by human resources tech, which secured $17.5 million through two transactions. 

Software-as-a-Service was the most active sector by deal count, recording seven transactions worth a combined $1.8 million. 

Debt financing dominated the month, with two transactions accounting for $300.5 million. Later-stage startups also attracted investor interest, with two series B rounds raising a combined $68.4 million. 

Early-stage companies, including pre-seed, seed and series A startups, raised $52.2 million across 21 deals. 

Business-to-business startups continued to receive the majority of capital, raising $371.5 million across 24 deals. 

Consumer-focused startups secured $85.7 million through six transactions, while the remaining capital went to companies operating across both B2B and B2C models. 

Funding remained concentrated among male-founded startups, which raised $442 million across 28 deals. 

Women-founded startups raised $200,000 across two deals, while mixed-gender founding teams secured about $12 million across three transactions. 

In the first five months of 2026, MENA startups raised approximately $1.5 billion. 

Saudi Venture Capital invests in Khwarizmi Venture Capital Fund 2 

Saudi Venture Capital has invested in Khwarizmi Venture Capital Fund 2, which will target seed-to-series A investments in high-growth technology and technology-enabled startups, primarily across the GCC. 

The fund will allocate at least 50 percent of its capital to Saudi Arabia. While it is sector-agnostic, it sees opportunities in fintech, e-commerce and artificial intelligence applications across multiple verticals. 

Nora Al-Sarhan, deputy CEO and CIO at SVC, said: “The investment in the venture capital fund by Khwarizmi Ventures is part of SVC’s Investment in Funds Program and an implementation of its strategy related to attracting fund managers to invest in Saudi based companies and stimulating investment for early stages.” 

Abdulaziz Al-Turki, managing partner of Khwarizmi Ventures, said: “This partnership represents a shared commitment to empowering entrepreneurs and accelerating the growth of high-potential technology startups.” 

He added: “With the support of SVC, we will continue to invest in exceptional founders, helping them build scalable companies that drive innovation, create economic value, and strengthen Saudi Arabia’s position as a leading hub for entrepreneurship and venture capital in the region.”

Algebra AI raises $7m to target GCC mid-market businesses 

UAE-based Algebra AI has officially launched after raising $7 million from Infinity Constellation, BECO Capital, Silicon Badia and Waseel Investments. 

Founded by Anis Harb, Algebra AI is an AI transformation company that develops and operates customised AI-powered workflows for mid-market businesses. 

The company serves sectors including financial services, food and beverage, manufacturing and distribution. 

Algebra AI plans to expand its client base across the GCC and grow its AI engineering and managed services teams. 

Zuvees raises $1.6m from IvyCap Ventures 

UAE-based gifting platform Zuvees has raised $1.6 million from IvyCap Ventures as part of its ongoing series A funding round. 

Founded in 2024 by Vijaykumar Ghadge and Abhishek Daiya, Zuvees operates an AI-powered cross-border gifting platform that enables individuals and businesses to send personalized gifts across international markets. 

The company plans to use the funding to strengthen its AI capabilities, expand across the Middle East and other global markets, and scale its corporate and consumer gifting services. 

MNT-Halan reaches $1.4bn valuation after new investment round 

Egyptian fintech MNT-Halan has reached a $1.4 billion valuation after the first closing of a new investment round led by Al Ahly Capital, the investment arm of the National Bank of Egypt. A second closing is expected as part of the ongoing round. 

The company plans to allocate most of the proceeds toward expanding its operations in Egypt while accelerating regional growth. 

MNT-Halan currently operates in Egypt and Turkiye, owns a specialized bank serving micro and small businesses in Pakistan, and entered the UAE market in 2024. 

Founded by Mounir Nakhla, MNT-Halan provides digital financial services including consumer and business lending, payments, e-wallets, savings, investments and e-commerce solutions. 

The company became Egypt’s first fintech unicorn in 2023 and has expanded through organic growth and acquisitions. 

Mabiati and Al Jabal Agriculture secure six-figure investments in Iraq 

Iraq-based startups Mabiati and Al Jabal Agriculture have secured separate six-figure investments from Iraqi investors and strategic partners. 

Founded by Mohammed Al-Sultan, Mabiati operates a digital commerce platform that enables entrepreneurs to launch and manage online stores while connecting merchants, suppliers, logistics providers and customers through a single ecosystem. 

Founded in 2022 by Mohammed Al-Ruwaishdi, Al Jabal Agriculture provides AI-powered smart farming solutions using satellite monitoring, geographic information system technologies and agricultural analytics. 

Both startups are backed by Orange Corners Baghdad and the Orange Corners Innovation Fund Iraq. 

They will use the funding to accelerate growth, expand technology capabilities and increase their impact across Iraq’s digital commerce and agriculture sectors. 

Edafa Venture acquires Kuadra and IRRI Vision 

Edafa Venture has acquired two AI startups, Kuadra and IRRI Vision, in six-figure transactions announced during AI Everything Middle East & Africa – Egypt 2026. 

The acquisitions are part of Edafa Venture’s strategy to expand its presence in the AI and technology ecosystem. 

Kuadra develops AI-powered construction technology solutions that help improve the planning, management and execution of large-scale construction projects through interconnected smart operating systems. 

Egyptian health tech startup IRRI Vision provides AI-based diagnostic solutions designed to help physicians and healthcare providers deliver faster and more accurate diagnoses, improving treatment outcomes and health care quality. 

Blnk raises $37.1m to expand consumer financing in Egypt 

Egyptian fintech Blnk has raised $37.1 million, comprising $12.5 million in series A equity funding and $24.6 million in local debt facilities, to expand its point-of-sale financing business and increase access to consumer credit across Egypt. 

The equity round was led by Algebra Ventures, with participation from SANAD Fund for MSME, Endeavor Catalyst and Emirates International Investment Company. 

The debt financing was provided by a group of local banks and non-bank financial institutions, including the National Bank of Egypt, Suez Canal Bank, Bank Albaraka, Corplease, Globalcorp and BM Lease. 

Founded in 2021 by Amr Sultan and Tarek Elsheikh, Blnk provides AI-powered consumer financing solutions through a network of more than 3,000 merchants. 

The company plans to use the funding to expand its product offering, enhance its technology stack, explore regional expansion and launch a credit card program. 

In 2022, Blnk raised $32 million in a mix of equity and debt funding.​​​​