Egyptian startups have recorded an all-time high venture investment of $190 million through 114 deals in 2020 compared to $146 million in 2019, according to a new report by MAGNiTT and IT Industry Development Agency (ITIDA).
The study indicated that despite facing a 14% YoY fall in the number of transactions due to the drop in accelerated deals, MENA's startups raised 13% more funding than they did in 2019.
Key findings
Startups’ funding in Egypt has grown by 30% in 2020 compared to 2019 with a CAGR of 100% between 2015 and 2020.
The UAE has topped by a number of deals in the MENA region, which accounted for 26% of total transactions, followed by Egypt (22%), and Saudi Arabia (18%).
Egypt commanded the second-largest share of total venture investment in MENA (18%), after the UAE (57%).
E-commerce ranked first with 18 deals representing 16% of all transactions, a 64% increase in transactions in 2020 compared to 2019.
Delivery & Logistics registered the largest increase in deal count (over 80%) to reach a total of nine transactions in 2020.
Healthcare witnessed a 1600% increase in capital deployed, amounting to $57 million in 2020.
Series A and Series B+ funding rounds accounted for 10% of all venture transactions in Egypt, a 5% increase from their deal share in 2019.
Top 5 rounds in 2020
The top five deals in 2020 were credited to startups operating in E-commerce, Healthcare and Transport.
The healthcare startup Vezzeta raised the largest round of $40 million in 2020, followed by SWVL ($26 million), Halan ($15 million), elmenus ($8 million), and Yodawy ($6 million).
According to MAGNiTT’s report, international firms represented 32% of all investors supporting Egyptian startups in 2020, compared to 21% in the UAE and 18% in the KSA.
The number of investors in Egyptian startups more than doubled in three years, going from 31 active firms in 2017 to 69 in 2020. Flat6Labs, 500 Startups and Falak Startups accounted for the highest number of deals in 2020, while 64% of all active investors participated in only one deal.
Startups’ scene in 2021
MENA’s startups are gaining traction across the MENA region. Last month, 44 startups raised more than $175 million, up $5 million from March, according to a report by Wamda.
Saudi Arabia topped the list for the first time—in terms of number and value of startup investments—led primarily by Tamara’s $110 million Series A round. Egypt also performed well, with 10 of its startups raising $16.4 million.
Paymob, Homzmart, Bosta and Koinz are among the Egyptian startups that gathered significant investments in 2021.
Source
