Outpaced only by the fintech sector, Mena retail and e-commerce start-ups are continuing to thrive, showcasing sustained vitality in entrepreneurial activity, according to research firm MAGNiTT.
Burgeoning retail businesses significantly benefit from heavy investments in Saudi Arabia’s Nana and Floward, which accounted for 80 per cent of the sector’s total funding in the first half of the year.
Last month, Mena start-ups raised more than $76 million across 18 deals.
This amount is significant considering that the wider Middle East, Africa and Pakistan region raised $139 million through 46 deals during the same period.
Two out of three exits recorded by the region during August originated from the Mena region, reflecting its growing role in the global start-up ecosystem, the research shows.
While the first half of 2023 was challenging for the Mena region, with a 41 per cent year-on-year decline in attracted capital across 193 deals, it outperformed the global average funding decline of 52 per cent.
Although Mena deals suffered a 49 per cent decline. Nevertheless, it was steeper than the 25 per cent drop in global deals.
MAGNiTT’s July report showed that e-commerce and fintech start-ups dominated venture capital financing in the Mena region during the first half of this year despite global economic headwinds.
