CAIRO: Startups across the Middle East and North Africa accrued a solid $95 million across 31 deals in July 2023, marking a slight decrease from last year’s $105 million for the same month, yet demonstrating a robust 167 percent month-on-month surge from June’s $35.6 million.
While the deal volume decreased by 31 percent, the numbers yield a different perspective when factoring out the UAE’s electric vehicle startup One Moto’s $40 million lease financing round.
Excluding that, the total equity investment for July recalibrates to $55 million, reflecting a 55 percent growth from the preceding month.
Moreover, UAE startups led the month with $64.7 million raised, thanks to One Moto’s round.
Saudi Arabia came in second with $18 million raised via five deals. The highest funding for the month was clinched by Riyadh-based foodtech Kaso, amassing $10.5 million in a seed round.
Egypt and Morocco held the third and fourth positions, securing $7 million and $2 million in funding, respectively.
Founded in 2021 by Manar Alkassar and Ahmed Soliman, Kaso isaB2BF&B marketplace for restaurants. (Supplied)
Seed and pre-seed stage startups took the lion’s share with 15 deals. However, late and growth-stage startups witnessed a funding contraction, contributing to the slowdown in venture capital activities in July.
The mobility sector emerged as the top-funded sector in July, driven by One Moto's significant round.
The food technology industry cornered $17 million across five deals, propelled by a burgeoning adoption of enterprise software solutions in the sector.
When dissected gender-wise, funding remains limited for female-founded startups, with most capital funneled through accelerators and incubators. Only one deal, with Jordanian proptech Nomad, went to a female-led startup in July.
Mixed-gender founding teams fared better, drawing $12 million across six deals. All-male-led startups amassed 87 percent of total funds, raking in $84 million.
US-based investors proved the most active foreign participants, with ten deals. Regionally, investors from Egypt and the UAE participated in eight deals each, with Saudi investors partaking in seven.
Beyond pure funding, July witnessed several notable acquisitions, including Saudi Arabia’s HyperPay take over of Riyadh-based Sanad Cash and the UAE’s EDGE Group's acquisition of Abu Dhabi’s OrxyLabs.
In a significant transaction, Germany’s Delivery Hero procured the remaining shares of Saudi Arabia’s HungerStation for $297 million.
Other highlights include the introduction of a $54 million foodtech-focused fund by Agthia Group, and a novel accelerator program targeting Egypt-based accelerator and incubator managers, launched by 500 Global.
UAE’s LVL Wellbeing secures $10m in a series A funding round, eyes Saudi expansion
LVL Wellbeing, a corporate platform based in the UAE, has closed its series A funding round at $10 million led by MG Wellness Holding, a subsidiary of the Abu Dhabi-based Multiply Group.
The newly acquired funding will be used to bolster the growth of LVL Wellbeing, enabling it to become a leading wellness platform within the workplace environment.
This will include the addition of exciting new features, such as an Arabic language version of the app, expected to launch in the second half of 2023.
“This investment will allow us to prioritize creating unique, immersive experiences in corporate spaces. Our members will have the opportunity to focus on their well-being whether at home, in the office, or while traveling,” Gary Blowers, CEO of LVL Wellbeing, said.
The infusion of funds will also facilitate the integration of HealthierU into LVL Wellbeing’s operations. Supplied
Blowers also revealed plans to expand into Saudi Arabia as part of the company’s organic regional growth strategy.
The infusion of funds will also facilitate the integration of HealthierU, a Multiply Group subsidiary, into LVL Wellbeing’s operations.
HealthierU, a marketplace platform connecting individuals with wellness consultants worldwide, has demonstrated impressive results in reducing chronic disease risks among predisposed individuals.
“The integration of HealthierU into the LVL Wellbeing ecosystem will enable us to combine forces to offer the most comprehensive preventative health and wellbeing services to our members and clients,” Blowers added.
The LVL Wellbeing app offers a host of engagement features designed to support members on their wellbeing journey and provide real-time data to corporate clients.
Moreover, LVL Wellbeing has developed a digital wellbeing studio to deliver content directly to corporate spaces, with studios in Dubai, Abu Dhabi, and Palm Jumeirah, and further locations in the pipeline.
UAE’s UDENZ raises $5m in a series A round as it aims to digitize dental healthcare
UDENZ, a digital dental health platform headquartered in Dubai, has secured a $5 million series A funding round from Hakim Capital Holding, Techcelerate Investments LLC, Inspira Management, and Dubai Business Corporation.
Launched in 2016 by Hisham Safadi, UDENZ is a digital healthcare platform that integrates 26 services into one platform and has catered to over 100,000 dentist search requests and confirmed more than 5,000 bookings. Its database boasts nearly 8,000 dentists from across the MENA region.
UDENZ plans to utilize the funding to expedite a free platform service for over 50,000 dentists across the region.
“This significant investment will empower us to build on our vision to revolutionize dental services, making them more accessible and effective for both practitioners and patients. It’s a validation of our efforts and a catalyst for our future growth,” Safadi said.
