Saudi Arabia leads startup funding in the region with $158.5M in April 2025
iMENA Group’s $135 million pre-IPO round propels Saudi Arabia ahead of the UAE, marking significant growth in the region’s investment landscape
RIYADH, Saudi Arabia (MNTV) — In April 2025, Saudi Arabia dominated startup funding in the Middle East and North Africa (MENA), securing $158.5 million across eight deals.
This accounted for more than two-thirds of the region’s total investment for the month, according to Arab News.
The Kingdom’s performance was largely driven by iMENA Group’s $135 million pre-initial public offering (IPO) round, which placed it ahead of the UAE, which secured $62 million in funding across nine startups.
In total, MENA startups raised $228.4 million in April, spread across 26 deals. This marked a 105 percent increase compared to March and nearly tripled the amount raised in April 2024.
The report highlighted that, notably, there were no debt-financed deals in April, underscoring a growing investor preference for equity-based funding.
“The absence of debt-financed deals in April reflects increasing confidence in equity investments, signaling a healthier capital environment,” the report stated.
Morocco ranked third in the region, securing $4 million through two startup deals, while Egypt lagged behind, raising just $1.5 million across four companies.
Early-stage ventures led in deal volume, bringing in $49 million through 20 transactions. Late-stage investment was focused entirely on iMENA’s pre-IPO round.
Fintech was the most attractive sector, drawing $44 million across seven deals. Traveltech also saw growth, driven by the HRA Experience deal, while e-commerce startups raised $2.5 million across three deals.
Software-as-a-service (SaaS) startups made a comeback, raising $1.8 million through three transactions.
Business-to-business (B2B) startups dominated the funding landscape, securing $180 million across 12 deals.
Business-to-consumer (B2C) ventures raised $43 million from seven transactions, with six companies operating both B2B and B2C models attracting the remaining disclosed funding.
Despite the positive trends in funding, gender disparities in startup investment remained a concern.
Female-led startups raised less than $500,000 in total, while male-founded ventures captured 97 percent of all disclosed capital. Startups co-founded by both men and women raised an additional $6.5 million.
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