Mena startups raised $247 million in March 2023, pushing Q1 funding to $1.1 billion

Mena startups raised $247 million in March 2023, pushing Q1 funding to $1.1 billion

Startups in the Middle East and North Africa region (Mena) raised $247 million across 67 deals in March 2023, a decline of 67 per cent month-on-month (MoM), and a 17 per cent dip from a year-ago.

The total funding raised by startups in Q1 surpassed the $1.1 billion mark in March 2023, marking a 17 per cent increase quarter on quarter.

Saudi Arabia was the top destination for startup investment last month, scooping up more than half of the total deal value in the region with $175 million across 20 deals. The rise was largely attributed to the $150 million raised by buy now pay later (BNPL) startup Tamara in a debt financing round from Goldman Sachs, which alone represented 64 per cent of the total funding value recorded last month.

The UAE was a distant second with $59 million raised across 18 deals. Notable deals include Qlub's $25 million Seed round and COFE's $15 million round led by Wa'ed Ventures as well as Almentor's $10 million pre-Series C round. 

Bahrain, Kuwait and Morocco ranked third, fourth and fifth respectively.

Amid a rising difficulty in raising capital, investor sentiment at later stages of funding remains tapped out. Last month