MENA Startups Raise $150m in April as Investor Activity Recovers
April saw a rebound in funding activity for Middle East and North Africa startups, with $150 million raised across 27 deals.
Riyadh: Startup investment activity across the Middle East and North Africa (MENA) recovered in April 2026, with startups raising $150 million across 27 deals according to Wamda’s monthly investment report.
This represents a 211 percent increase compared to March when regional funding activity had slowed amid geopolitical uncertainty and investor caution.
Despite this month-on-month rebound, overall funding remained down 42 percent compared to April 2025, reflecting continued pressure on venture activity across the region.
The report noted that nearly half of the capital deployed during the month came through debt financing, highlighting investor preference for structured capital and lower-risk instruments over traditional equity exposure.
The relative stability carried into early May appears to have encouraged investors to cautiously resume activity, although the market remains selective with capital concentrated in fewer, larger transactions and sectors viewed as more resilient during periods of uncertainty.
Debt transactions accounted for $80 million raised across two deals in April, indicating investor prioritization of downside protection and capital-efficient structures.
The UAE continued to lead regional startup funding activity, attracting $78 million across eight deals, accounting for 52 percent of total capital raised during the month.
Saudi Arabia ranked second with seven startups raising a combined $26.2 million, followed by Egypt which maintained its position as one of the region’s most active startup markets with a similar funding total spread across five transactions.
Financial technology remained the most funded sector in April for the fourth consecutive month, securing $89.4 million across seven deals.
The report attributed this to sustained demand for financial infrastructure solutions and enterprise-focused products which tend to perform more consistently during uncertain market conditions.
E-commerce activity also recovered after a slowdown in March, raising $19.3 million across four deals.
Online services startups raised $15 million across two transactions, while food technology companies attracted $13 million through two deals.
Business-to-business (B2B) startups continued to dominate investment activity in April, raising $95.8 million across 11 deals compared to B2C startups which secured $35.8 million through 12 transactions.
This reflects investor preference for startups with predictable revenue models, enterprise contracts, and infrastructure-focused offerings.
Female-led startups returned to the regional funding landscape after two consecutive months without recorded transactions, raising $1.5 million across five deals in April.
However, funding disparities remained significant, with male-founded startups securing $138.8 million across 19 transactions and startups with mixed-gender founding teams raising $10 million across three deals.
The Wamda report concluded that April’s funding increase signals the market may have found temporary stability rather than entering a full recovery cycle.
Investors remain active but are deploying capital selectively, prioritizing risk management and sustainable growth models.
This represents a 211 percent increase compared to March when regional funding activity had slowed amid geopolitical uncertainty and investor caution.
Despite this month-on-month rebound, overall funding remained down 42 percent compared to April 2025, reflecting continued pressure on venture activity across the region.
The report noted that nearly half of the capital deployed during the month came through debt financing, highlighting investor preference for structured capital and lower-risk instruments over traditional equity exposure.
The relative stability carried into early May appears to have encouraged investors to cautiously resume activity, although the market remains selective with capital concentrated in fewer, larger transactions and sectors viewed as more resilient during periods of uncertainty.
Debt transactions accounted for $80 million raised across two deals in April, indicating investor prioritization of downside protection and capital-efficient structures.
The UAE continued to lead regional startup funding activity, attracting $78 million across eight deals, accounting for 52 percent of total capital raised during the month.
Saudi Arabia ranked second with seven startups raising a combined $26.2 million, followed by Egypt which maintained its position as one of the region’s most active startup markets with a similar funding total spread across five transactions.
Financial technology remained the most funded sector in April for the fourth consecutive month, securing $89.4 million across seven deals.
The report attributed this to sustained demand for financial infrastructure solutions and enterprise-focused products which tend to perform more consistently during uncertain market conditions.
E-commerce activity also recovered after a slowdown in March, raising $19.3 million across four deals.
Online services startups raised $15 million across two transactions, while food technology companies attracted $13 million through two deals.
Business-to-business (B2B) startups continued to dominate investment activity in April, raising $95.8 million across 11 deals compared to B2C startups which secured $35.8 million through 12 transactions.
This reflects investor preference for startups with predictable revenue models, enterprise contracts, and infrastructure-focused offerings.
Female-led startups returned to the regional funding landscape after two consecutive months without recorded transactions, raising $1.5 million across five deals in April.
However, funding disparities remained significant, with male-founded startups securing $138.8 million across 19 transactions and startups with mixed-gender founding teams raising $10 million across three deals.
The Wamda report concluded that April’s funding increase signals the market may have found temporary stability rather than entering a full recovery cycle.
Investors remain active but are deploying capital selectively, prioritizing risk management and sustainable growth models.
