Mena startups raised $105 million in July, lowest amount so far in 2022

Mena startups raised $105 million in July, lowest amount so far in 2022

Startups in the Middle East and North Africa (Mena) raised $105 million across 44 deals in July 2022, marking a significant slowdown in investments so far this year. In terms of investment value, this is a drop of 84 per cent year-on-year and a 68 per cent drop month-on-month. Even without Kitopi’s record-breaking $415 million Series C round announced in July last year, the amount raised last month fell by more than 50 per cent. 

The number of deals fell by almost a third when compared to June  and has halved when compared to July 2021. Investment announcements typically fall during the summer months, but it seems like this slowdown is reflective of wider global trends that have impacted investor sentiment. Investment in startups worldwide fell by 23 per cent in the second quarter this year, according to CB Insights due to growing economic uncertainty and a decline in tech stocks. 

Most of the investment in July was concentrated in the fintech sector thanks to UAE-based Yap’s $41 million growth round. This one deal accounted for more than half of the amount raised in the UAE alone. 

Saudi Arabia, which to date has seen investment in its startup rise