Egypt Continues to Dominate the North African Tech Startup Space as it Cornered 53% of the Region's Funding in June

Egypt with a population of about 102 million people, has maintained its dominance in almost all spheres of human endeavor, ranging from population, economy, and infrastructure development to sport. And it has now attracted the highest amount of tech startup funding to the region, dominating every month in the first half of 2022.

Northern African tech startups raised 493.5 million in H2 2022, more than 3.2 times the amount raised in the previous year. Egypt alone raised $269.1 million of the region’s total funds. Its dominance is not driven by a few megadeals but by a healthy mix of early- and late-stage deals; so far, in 2022, a new deal is signed every 2.5 days, comparable to the performance in 2021.

Breakdown of Funds Raised Monthly

JUNE

Eleven startups in the North African region secured about $18.5m, 7 out of these startups being Egyptian, translating to 53% of the total disclosed funding in the region in June.

Egyptian Adva and Boyot secured undisclosed funding, while Petcare raised bridge investment. Other Egyptian startups include Nice Deer ($1m), Khazely ($2.5m), Synapse Analytics ($2m), and DXwand ($1m). Morocco produced Wafr ($1.07m) and Jodop ($1m). Tunisia’s Save Your Wardrobe ($3m) and Gomycode ($8m).

.MAY

Twelve startups in the North African region secured about $145.4million, with 10 out of these startups being Egyptian, representing 99.3% of the total disclosed funding in North Africa for May.

Paymob raised $50m, followed by Instabug, $46m, while four startups didn’t disclose their funds (Teegara, Gooo, Natrify, and Morocco’s Blink Pharma). Other Egyptian startups are Mylerz ($9.6m), mara($23), Instabug ($46m), Doxx ($1.5m), Esaal ($1.7m), Sylndr ($12.6m). Moroccan logistic startup raised $1m.

APRIL

Eight startups in the North African region secured up to $26.9m, with 7bout Egyptian startups. Moroccan fashion startup, Nessiam raised $306k while ShiftEV and Rology’s were undisclosed. The Egyptian startups are Food Labs ($4.5m), Sprints ($1.2m), 07 Therapy ($2.1m), WaFR ($735k), and Pylon.

MARCH

The region raised $84.4 million in the North African region, excluding undisclosed funding from 3 Egyptian startups, Chefaa, Bosta, and Payment. Out of the 17 startups that raised funding, 15 are Egyptian, which was 97.8% of the total disclosed funding of the region.

Significant funding includes Egyptian fintech Khazna ($38m) and Lucky ($25). Other fundraising startups still from Egypt include: Kouncel($1.2m), Mumerz ($1.2m), Naqla ($10.5m), Shatablee ($1.2m), Nexta ($2.2m), Welnes ($300k), Flapkap ($1.2m), Xpovi ($300k), On Market ($215K), Intella ($1m), while Tunisia had Wattnow ($1.3m) and Waterspirit ($872k).

FEBRUARY

The region raised $77.7 million in North Africa, excluding undisclosed funding from 3 Egyptian startups, Nawah Scientific, Elmenus, and FreshSource. Out of the 16 startups that raised funding, 13 are Egyptian, which takes Egypt’s share to 98.5% of the total disclosed funding of the region.

Significant funding includes Egypt’s SWVL ($21.5m) and Thndr ($20). Others include Egypt’s fintech, MoneyHash ($3m), Tunisia’s Avidea ($696k), Morocco’s Wafr ($372k), and Freterium ($4m) took the other three spots. Other Egyptian startups include YFS ($7m), Sokna ($1m), Nawry ($5m), Wasla ($9m), Samas ($150k), Milezmore ($5m), OneOrder ($1m).

JANUARY

In January, the region raised a total of $107 million in this region, excluding undisclosed funding from 5 Egyptian startups, OBM Foundation, Super FNY, Crafty Workshop, 3atter, and SplendApp as Morocco’s Chari bridge funding.

Notable funding includes Tunisia’s Instadeep ($100m), Egypt’s Brimore ($25m), Orcas ($2.1m), and Tawfeer ($500k)

Egypt’s dominance of the region isn’t a surprise, having raised a whopping sum of $1.2bn in 3 years, representing 83.3% of the $1.5bn investments raised by the North African startups within the same period. Again, the North African biggest economy effortlessly raised a total of $269.1 million out of the sum of $493.5 million the investors invested in the region’s startup in the first half of 2022, according to a report by Daily News Egypt.

In the first half of this year, 35 Egyptian startups raised $269.1 million in the fintech and e-commerce sectors. Brimor and Thunder secured the majority of funds obtained in January and February, respectively, in the first two months. And March saw the most investment, with nine startups raising $78.95 million. In addition, three significant deals added to March’s ranking, with Khazna, Lucky, and Naqla raising $38 million, $25 million, and $10.5 million, respectively.

Finances fell in April but recovered in May, with PayMob’s $50 million deal leading the way, and June saw three $4.5 million deals.

So far, in 2022, a new deal is signed every 2.5 days, comparable to the performance in 2021. And it is safe to say that the country will not be slowing down anytime soon as it strives to be the best economy in Africa.