The latest reports revealed that the 50 most-funded start-ups in the Middle East and North Africa raised a total of $3.2B since their inception, with 18 companies from the UAE, 12 from Saudi Arabia and 11 from Egypt making the list. Rain Management, a Bahrain-based start-up that ranked sixth on the list, raked in $118M in fundraising.
To be considered for the list of the top 50 start-ups in the world, a start-up must have been founded no earlier than 2015 and have raised at least $20M in total funding. Start-ups that were acquired, merged, went public on stock markets, or did not provide sufficient data on funding and investors were excluded from the list. The cut-off date for funding was November 10, 2022.
In 2021, Pure Harvest Smart Farms was the second-place finisher in the list of the top ten Agri-tech businesses in the UAE. However, this year, the company has managed to secure the top spot, thanks to the $387M in total funding it has raised. In addition, the UAE-based start-up formed an alliance with Al Dahra Group in June 2022, increasing the total operating capacity under its management to over 22 hectares. Meanwhile, buy-now-pay-later Fintechs Tabby and Tamara retained their top five positions at second ($275M) and third place ($216M), respectively.
In 2022, Fintech companies were the most popular recipients of funding, with 21 companies attracting a total of $1.3B. E-commerce (ten) and delivery and mobility (four) were the top three most popular sectors, raising $576.7M and $299.6M, respectively.
The startups on the 2022 list represent nine MENA countries. For the third consecutive year, the UAE was the country with the most active start-up ecosystem, with 18 start-ups raising $964M in total funding. On the other hand, Saudi Arabia is home to 12 start-ups raising $946.7M, while 11 start-ups are headquartered in Egypt, raising $508.5M.
The 112 founders of the top 10 start-ups in the world are evenly distributed between solo founders and co-founders. Out of these 10 startups, 5 are led by solo founders, and Noureddine Tayebi’s ride-hailing, delivery, and payment platform, Yassir, ranks fifth with $193.25M in total funding.
One newcomer to the crypto-asset exchange market made the top 10 this year, with Rain Management ranking sixth after raking in $118M. Beyond securing millions in capital, many new entrants also cemented valuable partnerships, future-proofing their offerings in the market.
The list includes start-ups that were founded between seven and seven and a half years ago, excluding companies like Saudi Arabia’s fintech Foodics, which raised a total of $198M, and the UAE’s cloud kitchen Kitopi, which raised $804 M in total funding.
According to Forbes, the most funded fintech companies were those that received the most investment, with 21 start-ups raising a total of $1.3B. Following this was e-commerce, with 10 start-ups raising $576.7M. Finally, four mobility startups raised a total of $299.6M.
Many new entrants secured millions in capital and cemented valuable partnerships in the market. For example, Egyptian digital payment solutions platform PaySky partnered with Visa to launch the Yalla Card and Yalla Super App in the Middle East. Meanwhile, proptech Huspy acquired three brokerages on its home turf of the UAE: Home Matters, Just Mortgages, and Finance Lab. Here are some of the companies in MENA, that shared a large number of funding to expand their ventures as well as their exposures:
Letswork
Letswork, a UAE-based stage for shared spaces, brought $2.1M up in a seed subsidizing round to grow its tasks to Saudi Arabia. The company, which was founded in 2019 by Omar Almheiri and Hamza Khan, provides a marketplace where users can directly rent out co-working spaces like private offices, creative studios, and meeting rooms.
With its flagship product, the Letswork Pass, a subscription service that grants access to a distributed network of workspaces, it helps businesses that use a hybrid or remote work model. In addition to an investment from Saudi activist and media presenter Ahmed Al Shugairi, the company has received a strategic investment as part of its plans to expand into the Kingdom.
“The Space is one of the largest operators of co-working spaces in the country. Saudi Arabia is the biggest market in the Center East, and Riyadh is one of the primary business sectors where Dubai-based organizations venture into; Therefore, many of our corporate clients requested that Letswork be utilized there,” Khan, Letswork’s CEO, stated in a statement. The business is present in Bahrain, Portugal, and Spain in addition to Dubai and Riyadh. DTEC Ventures, 500 Global, and other angel investors joined the funding round.
Morningstar Ventures
UAE-based venture capital firm Morningstar Ventures has invested over $5M in the first interactive and immersive digital art gallery called 37xDubai. Located in Dubai’s Burj Daman Tower, the gallery will become Dubai’s business and lifestyle hub and will open in the first quarter of next year.
With 23% of the UAE population owning non-fungible tokens, the UAE art gallery is one of the best places in the region to buy and sell digital art. The gallery’s Web3-enabled education, digital and traditional artistry, entertainment and communication will bridge the gap between art and technology. “The design and architecture of our gallery are highly sophisticated, filled with state-of-the-art equipment, interior, sound, and lighting infrastructure,” stated Clemence Cazeau, CEO of 37xDubai. “We hand-picked and meticulously selected every element of the space to ensure that the 37xDubai gallery and its exhibitions could be presented in an unforgettable fashion to every one of our visitors,” added Cazeau.
Qatar Investment Authority
Qatar’s sovereign wealth fund, Qatar Investment Authority, led a $196.5M series G funding round in Boston-based cybersecurity start-up Snyk Ltd. Founded in 2015, the company provides a solution to find and fix vulnerabilities and license violations in open-source dependencies and container images.
QIA, whose asset valued around $450B, has invested in a start-up Snyk Ltd., that develops security solutions. The investment is valued at $7B, down from its previous round that put the company’s value at $8.5B. QIA plans to use its investment to drive product innovation and expand its team through strategic acquisitions. This will maintain Synk’s position as a leading developer security platform.
“We are confident that Snyk’s approach will position the company for a successful future, and that it is aligned with QIA’s track record of supporting innovative companies. This funding round saw new investors like Evolution Equity Partners, G Squared, Irving Investors, Sands Capital, and Tiger Global invest,” said Mansoor Ebrahim Al-Mahmoud, CEO of QIA.
Moove
In order to expand into the United Arab Emirates, the mobility fintech start-up Moove, based in Nigeria, is issuing its first sukuk to raise $30 M. The company, which was established in 2020, provides vehicle financing to mobility entrepreneurs worldwide. By developing a fleet of electric ride-hailing vehicles, the company intends to fuel its expansion into the Middle East and North Africa.
The issuance of the first sukuk demonstrates the global expansion and sustainability of the company. In a statement, Moove co-founder and co-CEO Ladi Delano said, “This is equally important because it advances our mission to build the largest EV ride-hailing fleet in the region, to drive forward mobility electrification, and to enable cities to reach their net-zero targets.”
In order to create long-term economic opportunities, the company will use its fund to expand to 2,000 electric vehicles in the UAE over the next year. Moove Charge, the company’s electric vehicle charging app, will be made available to drivers of ride-hailing services as part of its expansion into the United Arab Emirates.
