With the release of our FY2022 MENA FinTech Venture Investment Report, we take a look at FinTech as one of the major drivers of funding in the MENA region. Contact our sales team to learn more about this report and access the underlying data.
FinTech in the MENA region abated the overall EVM trend and reported a rise in both deals and funding in 2022, holding on to its position as an industry of choice for investors in the region. At a time considered to be turbulent overall, the industry in the Middle East and North Africa accumulated an unprecedented $925M in funding across 131 deals. The increase in funding was supported by both $100M+ deals which rose 75% year-on-year and non-MEGA deals whose values rose by 53%. The quarterly breakdown, however, shows that similar to its EVM peers, Q1 was the top performing quarter in 2022 and interestingly the best ever performing quarter for FinTech in the MENA region.
As the sector alone was responsible for bringing in almost 29% of the total capital deployed in the MENA region, the UAE remained the country of focus leading the FinTech front both in terms of funding capturing 37% of total FinTech funding in MENA and deals with a share of 34% of total deals. FinTech has been gaining interest in different geographies of the MENA region especially Saudi Arabia, Egypt and Bahrain which held on to the top positions in funding this year. Mainly backed by Tamara’s $100M and Rain’s $110M MEGA deals, KSA and Bahrain strengthened their presence among the top five posting 167% and 198% increases respectively in funding year-on-year.
Looking at the sub industries of FinTech, Payment Solutions was the highest funded and most transacted sub industry in the region in 2022. Maintaining its lead from 2021, Payment Solutions captured 33% of the total deals. At the same time, Neobanking maintained its position as second in the region with a share of 24%. Lending, on the other hand, broke through the top five sub industries in deals, closing 12 deals in 2022, a remarkable increase over the one deal reported in 2021. In funding, the top three industries namely Payment Solutions, Neobanking and Cryptocurrency captured 80% of total FinTech funding in MENA. Payment Solutions, which saw double its 2021 funding made it to the top with $304M, replacing Neobanking which came in second with $167M, slightly higher than its $164M reported in 2021. Cryptocurrency, which remained third, saw funding progress by 84%.
What’s In The Report?
This yearly report provides a comprehensive overview and a deep dive into the overall EVM region delving deeper into the Middle East and North Africa Fintech venture capital and funding investment space and includes the following:
• A 5-year analysis of FinTech venture funding evolution, with a focus on 2022 country and industry performance benchmarks
• A 2-year quarterly FinTech funding breakdown and comparison of Emerging Venture Markets and MENA region
• Top 20 investor ranking, together with the investor type and HQ analysis of all investment firms investing in the EVM and MENA region
• Top 20 startup Fintech funding rounds that were closed during the analyzed period, as well as the ticket size split of the entire deal flow
• Fintech exit evolution across all Emerging Venture Markets and the MENA region
Who will benefit from the report?
This report is ideal for investors tracking startup activity, consultants looking to identify technology innovation trends, as well as government entities searching for investments.
This report was created with data from MAGNiTT, a comprehensive directory of technology innovation trends. The platform provides the following analytics tools:
• Investment directories, a comprehensive list of all startup venture funding across the Middle East, Africa, Pakistan, and Turkey
• Market Sizing Tools to visualize investment growth and trends across industries, geographies, and stage
• Comparison Tools to benchmark geographies, industries and investor performance
• Exit comparisons, looking at Mergers & Acquisitions from across the region
Learn how MAGNiTT's proprietary data can help your business. Contact us now!
*This report aggregates and analyses tech startup investments across the overall Middle East, Africa, Pakistan and Turkey and gives a more detailed analysis of the Middle East and North Africa Region