Mena startups raised $176 million in May, lowest amount so far in 2022

Mena startups raised $176 million in May, lowest amount so far in 2022

Startups in the Middle East and North Africa region (Mena) raised $176 million in May 2022 across 42 deals, a decline of 40 per cent month-on-month investment value, but a 62.7 per cent increase year-on-year. 

Despite a decline in funding value, the deal count saw a 31 per cent uptick versus the previous month. 

Egypt-based startups led the pack in terms of deal value and volume, raising $81 million across 11 deals, with Paymob leading the way with a $50 million Series B round from Kora Capital, PayPal Ventures, and Clay Point. The value of investments raised by Egyptian startups rose by 135 per cent year-on-year. 

Saudi Arabia-based startups were a distant second with $46 million raised across nine deals thanks to fintech Hyperpay's $36.7 million round led by Mastercard, followed closely by UAE-based startups with $45 million raised across eight deals.

The total funding value was driven by the megarounds such as Paymob and Hyperpay, whose rounds combined make up almost half of the amount raised in May. 

Overall, the deal volume and value at later stages witnessed a sharp fall, a sign that investors are pulling back on writing larger cheques.

That said, early-stage startups mopped up