Startups across the Middle East and North Africa are experiencing a surge in capital investment, strategic acquisitions, and regional expansion, highlighting the increasing momentum in the area’s innovation ecosystem. This week, various startups secured funding and achieved key regulatory milestones, positioning themselves for growth in a highly competitive and rapidly changing market landscape.

Credit: Arab News

On the acquisition side, UAE-based Tech Universal Ventures has acquired a majority share in two companies: FixSquad, an Emirati mobile and electronics servicing brand, and ELVA11, a Swedish AI and software consultancy. This strategy aims to establish a global network of digital infrastructure companies. FixSquad operates throughout the Gulf Cooperation Council region with a hybrid consumer-enterprise model and is launching a regional franchise framework. Meanwhile, ELVA11 provides software development, AI consulting, and digital education services from its offices in Malmo and Stockholm. Darko Atijas, chief operating officer at TUV, noted that these acquisitions reflect their strategy to support companies delivering essential infrastructure for digital growth.

In addition to acquisitions, fintech startup Stitch has successfully raised $10 million in a seed funding round led by Arbor Ventures, COTU Ventures, Raed Ventures, and Saudi Venture Capital, with further contributions from family offices and angel investors. Founded in 2022, Stitch provides an API-driven platform that enables financial institutions to create and implement digital solutions more efficiently than existing systems. Founder and CEO Mohamed Oueida emphasized the company’s mission, stating, “At Stitch, our vision is to reinvent how financial and non-financial institutions bring banking and payment products to market.”

UAE-based spend management platform Qashio raised $19.8 million in equity and non-equity funding, led by Rocketship VC, with participation from MoreThan Capital, regional banks, and family offices. Established in 2021, Qashio is planning to enter the Saudi market and enhance its B2B loyalty program across the MENA region. The company had previously raised $10 million in a seed round in 2022.

Saudi startup BirdEye has closed a $586 000 pre-seed funding round led by a private tech-focused fund. Founded in November by Abdullah bin Omairah and Abdulrahman Al-Hassan, BirdEye offers an operations management platform designed for small and medium-sized retailers undergoing digital transformation. The investment will aid the company’s expansion throughout the nation and support team growth.

UAE-based Gainz has successfully raised a 7-figure pre-seed round in a mix of equity and debt, led by Antler MENAP, Lithium Holdings, and Eleventh Invest Inc. Launched in December, Gainz features a Shariah-compliant crowdfunding platform that enables individuals to invest in vetted SMEs, using AI to democratize access to working capital for businesses across the region. The new funding will be allocated towards scaling operations and innovating products.

COREangels MEA, in collaboration with PTS Holdings and the Arab Academy, has launched a $10 million investment fund aimed at early-stage fintech startups that align with the UN Sustainable Development Goals. During its fifth Investment Committee meeting in Cairo, five startups were selected to receive funding of up to $150 000 each.

Iraq-based B2B e-commerce startup Toolmart has secured seed funding from Plus VC, Oasis500, and other angel investors. Founded in 2022, Toolmart offers a digital procurement platform designed to help enterprises minimize costs and streamline sourcing. The recent capital will be used to grow its team and expand operations across the region.

Additionally, Egypt’s buy now, pay later platform Valu is set to begin trading on the Egyptian Exchange during the week of June 22, following an in-kind share distribution by its parent company, EFG Holding. Valu, founded in 2017, operates in Egypt and Saudi Arabia, reporting 3.1 billion Egyptian pounds in gross revenue and 423 million Egyptian pounds in net profit for 2024.

UAE-based greentech startup Bloomspoon raised $218 000 for 49 percent equity on Shark Tank Dubai. Founded in 2023 by Mostafa Khattab, Bloomspoon produces reusable cutlery from wheat straw embedded with seeds that can be planted after use. The funding will assist in expanding product lines, boosting retail distribution, and working toward B Corp certification.

Finally, Google has launched the second edition of its “Google for Startups Accelerator: AI First” program for the MENA and Turkiye region. This 12-week program is designed for Seed to Series A startups utilizing AI to develop scalable solutions and provides technical resources including cloud credits and mentorship.

According to EY’s MENA M&A Insights report, the region saw a 31 percent increase in mergers and acquisitions in the first quarter, totaling 225 deals worth $46 billion. Cross-border activity constituted over half of all agreements and 81 percent of total value, with the UAE leading the way with 63 deals amounting to $20.3 billion. The technology sector emerged as the dominant force in domestic M&A, accounting for 37 percent of deal value, while the largest domestic transaction involved Group 42’s $2.2 billion acquisition of a 40 percent stake in Khazna Data Centers.