Egypt’s startup funding rose 219% m-o-m in September

How did Egypt’s startup scene fare in September? Local startups raised USD 25.1 mn across eight transactions last month, a sharp 219% rise from the USD 7.9 mn raised in August across five transactions, Rasmal’s MENA startup funding report reads.

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Cairo-based startups dominated the funding landscape, accounting for six of the eight transactions, pulling in USD 24.8 mn, primarily driven by fintech and cleantech ventures, according to the report.

Who pocketed the largest investment in September? Local fintech startup Paymob closed September's largest transactions, closing a USD 22 mn series B extension round led by EBRD Venture Capital.

Egypt still lagged behind regional players securing their place in the region’s startup scene: Saudi Arabia dominated regional startup funding in September, securing USD 165.3 mn, followed by the UAE with USD 114.3 mn, which the report attributed to “favorable government policies, strong infrastructure, and a growing appetite for risk among investors.”

Regional snapshot: MENA startups raised a combined USD 328.3 mn across 60 startups last month, down from USD 566 mn in August. The region raised USD 1.1 bn across 143 startups in 3Q 2024. The lion’s share of investments in September — some USD 129.4 mn — was concentrated in late-stage VC funding. Meanwhile, seed-stage funding declined 17% m-o-m to USD 57.3 mn, while Series A funding grew 187.8% m-o-m to USD 54.7 mn.

The three most attractive sectors: Fintech startups secured USD 134.8 mn in September, up from USD 47.2 mn in August. They were followed by the logistics sector at USD 82.9 mn and the software development sector with USD 52.6 mn.