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# MENA startups raised $445 million in May 2023
- URL: https://www.techloy.com/mena-region-startups-raised-445-million-in-may-2023/
- Published: 2023-06-18T14:30:10.000Z
- Updated: 2023-06-19T11:02:19.000Z
- Author: Yusuf Balogun
- Tags: Tech in MENA, / Startups, / Insights

The month of May was a bounce-back month for venture capital activity in the Middle East and North Africa (MENA), as venture funding into the region’s startups reached a $445 million split over 39 transactions, a significant increase from [the $7 million raised across 11 acquisitions reported in April](https://www.techloy.com/mena-startups-funding-declined-97-percent-april-2023/).

A notable 153% increase in deal volume was seen year-over-year, but, a 7% decline in deal volume was also noted.

With $422 million raised over 14 deals, representing 90%, the UAE topped the pack. The $350 million loan round from [BNLP startup Tabby](https://www.techloy.com/dubai-based-fintech-tabby-raises-58m-funding/) was a major driver of the funding. With $12 million raised by [super-app Snoonu](https://www.techloy.com/snoonu-raises-12-million-series-b/), Qatar moved up to the second rank for the first time, followed by Saudi Arabia with $6 million raised through 15 deals. The total amount raised in the region reduces to $95 million after Tabby's debt round, with the UAE contributing $71.6 million of that.

[CHART: Startup funding in the MENA region saw a 97% MoM drop in April 2023According to data compiled by Wamda, startups in the Middle East and North Africa (MENA) region raised just over $7 million in April 2023, marking a decline of 97% compared to March 2023 and 99% compared to April 2022\. The sharp drop in investment is primarily attributed to the traditional![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/size/w256h256/2021/07/techloy-dot.png)Acquah Nana YeboahTechloy![](https://images.unsplash.com/photo-1630673265211-8f8aca42fd5e?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=MnwxMTc3M3wwfDF8c2VhcmNofDZ8fGZ1bmRpbmd8ZW58MHx8fHwxNjgzNjUyNzc5&ixlib=rb-4.0.3&q=80&w=2000)](https://www.techloy.com/mena-startups-funding-declined-97-percent-april-2023/)

The graduation of seven domestic startups from the [Flat6labs](https://www.techloy.com/flat6labs-launches-startmashreq-in-mena/) Riyadh accelerator program helped Saudi Arabia top the charts in terms of deal count. 

When it comes to industries, fintech has remained a top choice for VC funding both with and without Tabby's round, while e-commerce attracted the second-highest amount of funding thanks to Squatwolf, a company based in the UAE, and its $30 million round. The sector in question moved up to third place thanks to Snoonu's round.

[📊 The MENA region’s startup funding declined by 67% in March 2023The startup scene in the Middle East and North Africa (MENA) region witnessed a significant decline in funding, as per the latest report by MAGNiTT, a data platform for startups in the region. According to the report, MENA-based startups raised $247 million across 67 deals in March 2023, marking a![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/size/w256h256/2021/07/techloy-dot.png)Acquah Nana YeboahTechloy![](https://images.unsplash.com/photo-1586724237569-f3d0c1dee8c6?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=MnwxMTc3M3wwfDF8c2VhcmNofDN8fHNhdWRpJTIwYXJhYmlhfGVufDB8fHx8MTY4MDg3ODI0Nw&ixlib=rb-4.0.3&q=80&w=2000)](https://www.techloy.com/mena-region-startup-funding-march-2023/)

Dealmaking has improved after being badly harmed by unstable market conditions in the later phases of funding. Pre-seed and seed startups continue to account for the majority of deals.

According to the report by *Wamda* and *Digital Digest*, 92.8 per cent of the investments went to startups with all-male founding teams, compared to 7.2 per cent for businesses with both male and female founders. In May, only one female-founded startup received funding – a $10,000 grant awarded to Chefaa, an Egyptian health tech firm.