Capital continues its brisk trajectory toward inventive enterprises across the Middle East and North Africa. This week witnessed a flurry of strategic acquisitions, successful funding initiatives, and ambitious regional expansions, underscoring the robust dynamism within the area’s burgeoning innovation sphere. From crucial seed capital injections to pivotal regulatory clearances, founders and financial backers are strategically positioning themselves to achieve substantial growth amidst a competitive and swiftly transforming market.
On the mergers and acquisitions front, Tech Universal Ventures, a UAE-based entity, has procured a controlling interest in FixSquad, an Emirati brand specializing in mobile and electronics upkeep, alongside ELVA11, a Swedish consultancy focused on artificial intelligence and software. This move aligns with TUV’s overarching strategy to cultivate a worldwide network of essential digital infrastructure firms. FixSquad maintains operations throughout the Gulf Cooperation Council, employing a dual business-to-consumer and enterprise model and is currently establishing a regional franchise system. Simultaneously, ELVA11 delivers software crafting, AI consultation, and digital learning services from its operational hubs in Malmo and Stockholm. Darko Atijas, TUV’s chief operating officer, stated that these buyouts manifest their commitment to establishing and supporting entities providing foundational elements for digital progress.
In funding news, Riyadh-based fintech innovator Stitch successfully closed a $10 million seed funding round. The investment was spearheaded by Arbor Ventures, COTU Ventures, Raed Ventures, and Saudi Venture Capital, with additional financial backing from private investment offices and individual investors. Established in 2022, Stitch provides an API-centric platform empowering financial institutions to construct and implement digital solutions with greater efficiency compared to conventional systems. Mohamed Oueida, Stitch’s founder and CEO, articulated that their aspiration is to revolutionize how both financial and non-financial organizations introduce banking and payment offerings to the market.
Further fueling regional expansion, Qashio, a UAE-based platform for expenditure management, secured $19.8 million through a combination of equity and non-equity financing. This funding round was led by Rocketship VC, with participation from MoreThan Capital, regional banking entities, and private investment groups. Founded in 2021, Qashio intends to utilize these funds to enter the Saudi Arabian market and enhance its business-to-business loyalty program across the MENA region. Qashio previously secured $10 million in seed funding in 2022.
Saudi Arabia’s startup scene also witnessed significant activity, with BirdEye, a newly established enterprise, concluding a $586,000 pre-seed funding round led by a private investment vehicle concentrating on technology. Founded in November by Abdullah bin Omairah and Abdulrahman Al-Hassan, BirdEye offers an operational oversight platform specifically designed for small and medium-sized retailers undergoing digital transformation. This investment will facilitate the company’s nationwide growth and team expansion.
UAE-based Gainz successfully closed a 7-figure US dollar pre-seed funding round, comprising both equity and debt financing. The round was led by Antler MENAP, Lithium Holdings, and Eleventh Invest Inc. Launched in December, Gainz operates a Shariah-compliant crowdfunding platform enabling individuals to invest in thoroughly vetted small and medium-sized enterprises. The platform employs artificial intelligence to broaden access to working capital for businesses throughout the region. The newly acquired funds will be directed towards scaling operational activities and fostering product innovation.
COREangels MEA, in collaboration with PTS Holdings and the Arab Academy, has introduced a $10 million investment fund dedicated to early-stage fintech startups that align with the United Nations Sustainable Development Goals. During its 5th Investment Committee meeting in Cairo, five startups—eMaisha Pay, RentBeta, Aqua Offers, Monak, and Reeple—were selected to each receive up to $150,000 in funding. The fund operates on a hybrid framework, integrating global angel investor networks with local innovation proficiency.
Expanding its footprint in the digital commerce sector, Iraq-based B2B e-commerce startup Toolmart secured seed funding from Plus VC, Oasis500, and various individual investors. Established in 2022, Toolmart offers a digital procurement platform assisting enterprises in lowering expenses and optimizing their sourcing processes. The new capital will be deployed to enlarge its team and broaden its operational reach across the region.
In a significant development for Egypt’s financial technology landscape, Valu, a prominent buy now, pay later platform, is slated to commence trading on the Egyptian Exchange during the week of June 22. This follows an in-kind share distribution by its parent company, EFG Holding. The official listing took place on May 21, 2025. Founded in 2017, Valu operates in both Egypt and Saudi Arabia and reported 3.1 billion Egyptian pounds in gross revenue and 423 million Egyptian pounds in net profit for the year 2024.
Highlighting the growing appeal of sustainable solutions, Bloomspoon, a UAE-based greentech startup, successfully secured $218,000 in exchange for 49 percent equity on the television program Shark Tank Dubai. Founded in 2023 by Mostafa Khattab, Bloomspoon produces reusable cutlery from wheat straw that contains embedded seeds, allowing for planting after its use. This funding will support the expansion of its product lines, enhance retail distribution networks, and facilitate efforts towards achieving B Corp certification.
Fostering innovation in the artificial intelligence domain, Google has announced the second iteration of its “Google for Startups Accelerator: AI First” program, specifically targeting the MENA and Turkiye region. This 12-week initiative is designed for Seed to Series A stage startups that are leveraging AI to develop scalable solutions, providing them with technical resources, including cloud credits and expert mentorship.
Reflecting the increasing momentum in regional deal-making, EY’s MENA M&A Insights report revealed a substantial 31 percent year-on-year increase in the volume of mergers and acquisitions in the first quarter of the year, with 225 deals valued at $46 billion. Cross-border transactions constituted over half of all agreements and a significant 81 percent of the total deal value. The UAE led the region with 63 deals totaling $20.3 billion. The technology sector emerged as the dominant force in domestic M&A activity, accounting for 37 percent of the total deal value. The largest domestic transaction during this period was Group 42’s $2.2 billion acquisition of a 40 percent stake in Khazna Data Centers. These diverse transactions and funding successes collectively paint a picture of a vibrant and rapidly maturing startup ecosystem across the MENA region.