We explore the portal to North Africa and MENA's up and coming Emerging Venture Markets with the launch of our 2021 Egypt Venture Investment Report sponsored by ITIDA- here's Egypt's top 3 funding rounds in 2021
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With the release of our 2021 Egypt Venture Investment free Report brought to you by ITIDA, we explore this fast-evolving Emerging Venture Market. The VC ecosystem in Egypt has made great strides over the past years, having grown at a 117% CAGR between 2017 and 2021. Last year, however, was a new height for the ecosystem as it closes record amounts of investment and transactions, and observes unprecedented investor participation backing the local entrepreneurial scene.
Over 147 transactions startups in Egypt raised a record-breaking $491M, observing 26% and 167% YoY growth respectively. This feat is especially remarkable while Egypt observed an unprecedented influx of international investors, as Egypt saw the highest participation from non-local investors accounting for 77% of total active investors compared to 44% across MENA, 46% in UAE, and 25% in KSA. In line with the general tendency towards larger ticket sizes observed across EVMs over the past year, average ticket sizes have increased- most remarkably, the Average Series A funding round observed a 337% YoY increase to cap at around $21M in 2021. However, Egypt was still the only geography of MENA’s top 3 to observe an increase (10 PP) in the proportion of Early-Stage funding rounds (<$500K) in 2021.
As a result of an impressive full-year funding run, the Egyptian VC ecosystem ranked in third place by total funding both in MENA and Africa. This week, we explore the three startups in the driver's seat of this funding growth with Egypt’s top 3 funding rounds 2021:
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Halan- $120M Funding Round
While FinTech raised the lion’s share of total transactions across Egypt, the Transport & Logistics (T&L) sector accounted for 36% of total funding, making it the most funded industry in Egypt in 2021. This was mainly driven by Egypt’s first Mega Deal ($100M+) to date recorded by T&L turned micro-crediting and nano-financing solutions startup Halan. The $120M Mega Round raised by Halan accounted for 68% of all capital deployed in the T&L space which observed a 281% YoY growth in funding in 2021.
Halan had raised one of 3 Series B rounds recorded in 2020, along with customer management SaaS provider DSquares and food aggregator Elmenus. While this Mega Round came a year after, it accumulated a consortium of strategic veteran investors including Apis Partners, DPI ( Development Partners International ), Lorax Capital Partners, Endeavor Catalyst, Disruptech, and Middle East Venture Partners (MEVP).
MaxAB- $55M Series A
Although growing by a mere 5% in number of transactions closed YoY, the E-commerce sector observed more than 300% YoY growth in funding to near the $100M mark and rank as the second-most funded industry in Egypt in 2021. The E-commerce sector observed sizable investments driven by the rise and attractivity of the B2B space, where B2B E-commerce marketplace for food & grocery MaxAB raised an exceptional $55M in Series A financing. This funding round accounted for more than 57% of all capital invested in the E-commerce space which accounted for almost every fourth dollar of investment in Egypt over the past year.
Over two funding rounds, the Egypt-based B2B E-commerce startup has raised more than $61M in funds and aggregated top-tier investors including BECO Capital, Endure Capital, 4DX Ventures, 500 Global, and the IFC.
Capiter- $55M Series A
Another big win for the B2B E-commerce space, with FMCG B2B marketplace Capiter raising an exceptional $33M Series A in 2021. Together, MaxAB and Capiter had raised more than 90% of all capital invested in the E-commerce space showing just how focal was the B2B space in revitalizing the influx of capital in the E-commerce space in Egypt and surely across Emerging Venture Markets. Following its SEED round from initial investors Foundation Ventures and Shorooq Partners, the $33M Series A round recorded investments from the likes of Quona Capital, MSA Capital, Savola Group, Accion Venture Lab, and Derayah along with the initial investors.
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