MENA Quarterly Investment Analysis Q3 CY 2024 October 2024 Confidential and proprietary © 1Lattice
Foreword The Middle East and North Africa (MENA) region exhibited remarkable growth in Q3 CY 2024, with deal activity rising to 123 deals from 100 in the previous quarter (~25%) and the total deal value increasing to Praneet Singhal Director approximately US$ 2.5B from US$ 2.2B (~15%). Financial Investors & 1Alpha Countries such as Egypt and the UAE saw significant increase in investment value of approximately 350% and 160%, respectively, on a Q - on - Q basis to US$ 260M and US$ 520M, respectively. In contrast, Israel, a major player in the MENA region, experienced a notable decline in investment activity (~20% decline in value), capturing only 60% of total MENA funding compared to 80% in the previous quarter. This decline is largely attributed to the recent escalation of conflict in the region. Abhilasha Jaju Director Tech remains the region's undisputed leader, with Software - as - a - Service (SaaS) being the most sought - Financial Investors and after sector, followed by Consumer Apps & Platform. Banking, Financial Services, & Insurance This report by 1Lattice aims to illuminate the key trends shaping the investment landscape within the MENA region during Q3 CY 2024. We believe this analysis offers valuable insights that can spark productive dialogue with partners across various industries. As the MENA investment landscape continues to evolve, we look forward to actively engaging in discussions, exchanging perspectives, and delving deeper into these Devmalya Mukherjee developments. Director Financial Investors © 1Lattice | 2
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Key highlights Funding # Deal v olume Average ticket size US $ 2. 5 B 123 US$ 20.1M SNAPSHOT Q3 CY 2024 Top funded sector Most funded stage (by # of deals) Total tech funding SaaS / AI Early US$ 2 . 2 B
Key takeaways ● MENA companies raised ~ US$ 2.5B across 123 deals (early, growth, late, and PIPE stages) in Q3 CY24 ‒ Early - stage deals (39% of the total funding) witnessed an increase in $ value by ~45% on a Q - on - Q basis ● Average deal size decreased from US$ 21.7M to US$ 20.1M ( ~10%) in Q3 CY24 from the previous quarter; however, the number of deals increased from 100 in Q2 CY24 to 123 in the current quarter (~25%) ● Israel attracted ~60% of the total funding at ~US$ 1.4B, followed by UAE (~US$ 520M) and Egypt (~US$ 260M) ‒ Egypt and UAE witnessed increase in $ value by ~350% and ~160%, respectively, on a Q - on - Q basis ‒ Israel witnessed a decrease in $ value by ~20% on a Q - on - Q basis fueled by investor pessimism on potential war escalation ● SaaS/AI was the most attractive sector for growth - stage (~US$ 540M) and early - stage investments (~US$ 450M) ‒ MNT Halan , a Fintech, received the highest funding of ~US$ 160M among growth - stage investments ‒ Sentient Labs, a robotics manufacturer, received the highest funding of ~US$ 85M among early - stage investments ● EnterpriseTech (~US$ 650M) and Fintech company (~US$ 400M) attracted highest tech investments in Q3 CY24 Note(s): * NaBFID – National Bank for Financing Infrastructure and Development
MENA region definition Syria Lebanon Palestine Tunisia Iraq Israel Iran Morocco Jordan Kuwait Bahrain Libya Algeria Qatar Saudi Arabia Egypt UAE Oman Sudan Yemen © 1Lattice | 6
Market by segments SaaS / AI leads funding, followed by Consumer App & Platforms in Q3 CY24 Funding market segment - wise break - up ( US$ M, Q3 CY24) Total funding size: US$ 2,473 M 179 409 Manufacturing 1,328 Consumer apps & platforms 90 101 Transportation E - commerce & & Logistics listing platforms SaaS / AI 2 39 62 62 Healthcare & Life * Others Energy Sciences Note(s): *Others include BFSI, security services, space tech and consulting © 1Lattice | 7 Source(s): Statistical reports, industry reports, secondary research, 1Lattice analysis
Agenda Deal landscape in Q3 CY24 Key deals and investment themes Key investors
Stage - wise investments Early - stage deals witnessed an increase in $ value by ~45% on a Q - on - Q basis pushing the total funding during Q3 CY25 to US$ 2.5B 1 Investment amount (US$ B) and # deals ( Q3 CY23 – Q3 CY24 ) 2.5 2.0 123 2.3 125 0.03 2.2 0.3 116 2.1 100 0.3 89 0.3 0.2 0.4 1.2 0.6 1.3 1.2 1.1 0.5 1 .0 0.7 0.7 0.7 0.6 Q3 CY23 Q4 CY23 Q1 CY24 Q2 CY24 Q3 CY24 2 Early Growth Late Others Deals 1 2 Note(s): An approximate amount has been assumed for undisclosed deals basis previous deals of investors & the funding stage; Others include deals with PIPE and unattributed rounds Source(s): 1Lattice Deals Database © 1Lattice | 9
Country - wise investments Israel drew highest investment of ~US$ 1.4B, followed by UAE (~US$ 520 M), and Egypt (~US$ 260M); Egypt had the highest growth of 348%, followed by UAE (164%) on a Q - on - Q basis Investment amount (US$ M) and # deals ( Q3 CY24 ) Avg. deal size 20.5 30.6 20.0 13.2 8.4 (US$ M) = % C hange over - 19% +164% +348% +34% +168% last quarter in $ 69 Israel witnessed a ~20% decrease in value from US$ 1.7B last quarter, fueled 1,414 by investor pessimism on potential war 17 16 escalation 13 520 8 260 211 67 Others* Egypt Saudi Arabia UAE Israel Amount Deals Low High Note(s): *Others include Oman, Iraq, Tunisia, Morocco, Algeria, and Kuwait Source(s): 1Lattice Deals Database © 1Lattice | 10
Average deal size Average deal size decreased by ~10% in Q3 CY24 in comparison to last quarter; Majority of the deals were in early stage (76%), followed by growth (19%) 1 Split of deal volume Average deal size (#, Q3 CY23 – Q3 CY24 ) (US$ M, Q3 CY23 – Q3 CY24 ) # of 26.5 116 89 125 100 123 deals = 1% 1% 23.8 4% 2% 5% 2% 1% 6% 21.7 20% 20% 19% 24% 20.1 10% 15.9 79% 79% 78% 76% 73% Q3 CY23 Q4 CY23 Q1 CY24 Q2 CY24 Q3 CY24 Q3 CY23 Q4 CY23 Q1 CY24 Q2 CY24 Q3 CY24 2 Early Growth Late Others 1 2 Note(s): An approximate amount has been assumed for undisclosed deals basis previous deals of investors and the funding stage; Others include deals with PIPE and unattributed rounds © 1Lattice | 11 Source(s): 1Lattice Deals Database
Agenda Deal landscape in Q3 CY24 Key deals and investment themes Key investors
Top 10 investments in Q3 CY24 Top 10 investments in MENA region in Q3 CY24 accounted for approximately 50% of the total investments Top 10 investments in Q3 CY24* Amount Funding Company Sector Country Key Investors (US$ M) stage SaaS/AI 325 Late UAE Silver Rock Group Consumer App & IFC , Development Partners International, Lorax Capital Partners, 157.5 Growth Egypt Platforms Apis Partners LLP, Lunate, GB Corp Novo Holdings, Viking Global Investors, RA Capital Management, Healthcare & Life 105 Growth Israel OrbiMed , New Enterprise Associates, JVC Investment Partners, Sciences ALIVE - Israel HealthTech Fund SaaS/AI 90 Growth Israel Battery Ventures, Left Lane Capital Pantera Capital, Framework Ventures, Arrington Capital, Canonical, Manufacturing 85 Early UAE Dao5 Transportation & 82.8 Growth Saudi Arabia Merak Capital Logistics Healthcare & Life 80 Growth Israel OurCrowd Sciences SaaS/AI 80 Growth Israel PSG Equity MMC Technology Ventures LLC, Fifth Wall Ventures, Array SaaS/AI 75 Growth Israel Ventures Evolution Equity Partners, Bessemer Venture Partners, Notable SaaS/AI 70 Growth Israel Capital, Greenfield Partners, Strait Capital Note(s): *These include deals only with disclosed deal amounts © 1Lattice | 13 Source(s): 1Lattice Deals Database
Early - stage investments SaaS/AI sector received highest funding (~US$ 450M) among early - stage investments Top 10 early - stage investments in Q3 CY24* Amount Early - stage investments, by sector Company Sector Country Key Investors (US$ M) (US$ M, Q3 CY24 ) Pantera Capital, Framework Ventures, Arrington Manufacturing UAE 85 Capital, Canonical, Dao5 Saas/AI 446.7 Consumer App Haun Ventures, F - Prime Capital, Slow Ventures, Israel 55 & Platforms Spartan Capital Consumer app & platforms 173.7 Eclipse, Standard Investments, Level VC, Canon Manufacturing Israel 50 Equity, Pitango First, Grove Ventures, 10D, Dell Technologies Capital Manufacturing 140.0 SaaS/AI Israel 40 Sequoia Capital Energy 62.2 Susa Ventures, Square Peg, Firestreak Ventures, SaaS/AI Israel 40 ICON Continuity Fund, TLV Partners, Vine Ventures Equinor, Shorooq Partners, Air Liquide Venture Healthcare & Life Sciences 30.2 Capital (ALIAD), Alumni Ventures, Amazon’s Climate Energy Oman 37 Pledge Fund, Climate Investment, Innovation Development Oman, Planet A Ventures, Salica Oryx Ecommerce & listing platforms 29.6 Fund, Siemens Financial Services SaaS/AI Egypt 34 BECO Capital, PactVC , A15, Nclude , QED Investors Transportation and logistics 18.0 Others include Sola Security Others Israel 28 S Capital, S32 BFSI Security 3.4 services SaaS/AI Israel 27 Index Ventures, Cyberstarts and Consulting Others 62.0 Consumer App UAE 22 Altos Ventures Management, Activant Capital & Platforms © 1Lattice | 14 Note(s): * These include deals only with disclosed deal amounts; Early - stage investments include Pre - seed, Seed, Pre - series and Series A Source(s): 1Lattice Deals Database
Top early - stage investments Top funded early - stage* startups with their competitors Company Description Competitors Manufacturer of a robotic gripper modular Provider of cryptocurrency marketing and risk management services Developer of quantum computers with qubits Maps threat actor techniques against the configuration of security tools and enables one click mitigations to fortify defenses Startup specializing in artificial intelligence software for code testing and bug detection Note(s): *Early - stage investments include Pre - seed, Seed, Pre - series and Series A Source(s): 1Lattice Deals Database © 1Lattice | 15
Growth - stage investments SaaS / AI dominated growth - stage investments* (~US$ 550M) Top 10 growth - stage investments in Q3 CY24 Growth - stage investment, by sector Amount (US$ M, Q3 CY24 ) Company Sector Country Key Investors (US$ M) IFC , Development Partners International, Consumer App & Egypt 157.5 Lorax Capital Partners, Apis Partners Platforms SaaS/AI 542 LLP, Lunate, GB Corp Novo Holdings, Viking Global Investors, Healthcare & Life RA Capital Management, OrbiMed , New Israel 105 Sciences Enterprise Associates, JVC Investment Consumer app & Platform 229 Partners, ALIVE - Israel HealthTech Fund SaaS/AI Israel 90 Battery Ventures, Left Lane Capital Transportation & Saudi Arabia 82.8 Merak Capital Healthcare & Life Sciences 201 Logistics Healthcare & Life Israel 80 OurCrowd Sciences Transportation & Logistics 83 SaaS/AI Israel 80 PSG Equity MMC Technology Ventures LLC, Fifth SaaS/AI Israel 75 Wall Ventures, Array Ventures Ecommerce & listing 60 Evolution Equity Partners, Bessemer platforms Israel 70 SaaS/AI Venture Partners, Notable Capital, Greenfield Partners, Strait Capital Artal Capital, Elm, Impact46 , Derayah Ecommerce & Manufacturing 39 Syarah Saudi Arabia 60 Listing Platforms Ventures Israel 42 SaaS/AI Fortissimo Capital, Kreos Capital © 1Lattice | 16 Note(s): *Growth - stage investments include Series B, C, D and E; The table includes deals only with disclosed deal amounts Source(s): 1Lattice Deals Database
Top growth - stage investments Top funded growth - stage* startups with their competitors Company Description Competitors Online platform for consumer payments and loans Venous catheter - based therapy for ADHF Provider of price intelligence solutions for e - commerce businesses A comprehensive platform specializing in technology - driven mobility solutions for people and products Discovering immune system - based drugs by biological data analytics Note(s): Growth - stage investments include Series B, C, D and E Source(s): 1Lattice Deals Database © 1Lattice | 17
Tech investments EnterpriseTech (~650M) and FinTech (~400M) attracted the highest tech investments in Q3 CY24 Top 10 tech investments in Q3 CY24* Amount Tech investments, by sector Company Sector Country Key Investors (US$ M) (US$ M, Q3 CY24 ) 0.0 SaaS/AI UAE 325 Silver Rock Group EnterpriseTech 653.0 Fintech 396.5 IFC , Development Partners Consumer App Cloud services & Infrastructure 199.5 Egypt 157.5 International, Lorax Capital Partners, & Platforms Apis Partners LLP, Lunate, GB Corp Cybersecurity 145.5 HealthTech 145.4 SaaS/AI Israel 90 Battery Ventures, Left Lane Capital Analytics 121.5 Logistics services 100.8 Pantera Capital, Framework Ventures, Manufacturing UAE 85 Robotics 85 Arrington Capital, Canonical, Dao5 Autotech 64.5 Transportation Electrical/Electronics 44 Saudi Arabia 82.8 Merak Capital & Logistics Developer Tools and Platforms 43 Others include Healthcare & Advertisement & Sales 39 Pharma, Israel 80 OurCrowd Life Sciences Crypto/Blockchai Security services 28 n, Edtech, Media & entertainment 21.6 CRM/Chatbots, SaaS/AI Israel 80 PSG Equity B2B E - Spacetech 19 commerce, Home & interiors 19 Logistics Tech, MMC Technology Ventures LLC, Fifth SaaS/AI Israel 75 Networking, and FoodTech 18.8 Wall Ventures, Array Ventures Travel & Consulting 15 Hospitality Evolution Equity Partners, Bessemer HR Services 14.8 Israel 70 SaaS/AI Venture Partners, Notable Capital, Greenfield Partners, Strait Capital Others 42.4 Ecommerce & Artal Capital, Elm, Impact46, Derayah Syarah Saudi Arabia 60 Listing Platforms Ventures Note(s): *These include only disclosed deal amounts Source(s): 1Lattice Deals Database
Top M&As Top M&As in Q3 CY24 Top M&As in Q3 CY24 Amount Acquired Company Sector Country Date Acquirer (US$ M) Consumer App & Platform September 2024 Israel 700 Healthcare & Life Sciences Israel 600 August 2024 SaaS/AI September 2024 Israel 450 SaaS/AI United Arab Emirates 385 September 2024 BFSI Bahrain 200 July 2024 SaaS/AI Israel 110 August 2024 Consumer App & Platform Israel 80 August 2024 Healthcare & Life Sciences United Arab Emirates 3.58 September 2024 Note(s): Includes top M&A deals whose amounts were disclosed Source(s): 1Lattice Deals Database © 1Lattice | 19
Agenda Deal landscape in Q3 CY24 Key deals and investment themes Key investors
Active investors Most active investors of Q3 CY24 Growth - stage investors Early - stage investors (# deals) (# deals) 3 3 2 2 3 2 2 2 2 2 2 2 Source(s): 1Lattice Deals Database © 1Lattice | 21
Active early - stage investors Most active early - stage investors and their investment segments in Q3 CY24 Ecommerce Consumer Investors & Listing Manufacturing Energy BFSI SaaS/AI App & Others Platforms Platforms - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Note(s): Only investors who have invested in more than 2 companies considered here © 1Lattice | 22 Source(s): 1Lattice Deals Database
Active growth - stage investors Most active growth - stage investors and their investment segments in Q3 CY24 Ecommerce & Consumer Investors Listing Manufacturing Retail BFSI SaaS/AI App & Others Platforms Platforms - - - - - - - - - - - - - - - - - - - - - Note(s): Only investors who have invested in more than 2 companies considered here © 1Lattice | 23 Source(s): 1Lattice Deals Database
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We are here for you Let us know how we can meet your business requirement? Praneet Singhal Abhilasha Jaju Devmalya Mukherjee Director, Financial Investors and Banking, Director , Financial Investors & 1Alpha Director, Financial Investors Financial S ervices, & Insurance E: praneet.singhal@1lattice.com E : devmalya .mukherjee@1lattice.com E: abhilasha .jaju@1lattice.com For media queries, please contact Vaishnav Kumar Rai Manager – Corporate Communications E: communications@1lattice.com M: +91 782 794 4925 www.1lattice.com Disclaimer: This material has been prepared by 1Lattice, which is the trade name of Lattice Technologies Private Limited (“1L att ice”, “we” or “our”) with the intent to showcase our capability and disseminate learnings to potential partners/clients. This material can be referred to by the readers on the internet but should be referenced to 1Lattice, if reused or adapted in any for m, or medium and on any forum. The frameworks, approaches, tools, analysis and opinions are solely 1Lattice’s intellectual property and are a combination of the collection of the best data we could find publicly, and the 1Lattice team’s own experie nce s and observations. Any information provided herein is only for informational purposes and you are advised to perform an independent analysis of the same before making any decision based on such information. The information does not constitute an y b usiness advice or guidance and is to be construed as a general summary based upon the publicly available information and our interpretation of the same using our resources. For this material, we may have relied upon different sour ces of information which may be primary sources, publicly available information, and relevant information available with us. We make no representation or warranty, expressed or implied, that such information is accurate or complete, and nothing conta ine d here can be construed as definitive predictions or forecasts. Before reading further, the Recipient expressly agrees that this might not address any and all risks and challenges facing the Recipient, its business, and the markets within which it operates, nor all possible market co nd itions. Any use of the information provided herein by the viewer shall be at the sole risk of the viewer and 1Lattice or its business partners, affiliates, agents, officers or employees shall not be liable for any un int ended or adverse effect or outcome from the use of such information by the reader. 1Lattice does not have any duty to update or supplement any information in this document. 1Lattice shall not be responsible f or any business or commercial loss sustained by any person who relies on any information provided herein. Any and all logos of companies used in the information provided herein have been published for information purposes only and 1Lattice doe s not hold any liability in connection therewith.
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