MENA Quarterly Investment Analysis Q4 CY 2024 FEB 2025 Confidential and proprietary © 1Lattice
Foreword The Middle East and North Africa (MENA) region showcased a fascinating contrast in Q4 2024. While the value of growth deals increased by ~50%, rising to US$ 1.7B from US$ 1.2B in the previous quarter, the Praneet Singhal Director value of early - stage deals declined by ~40%, falling to US$ 0.6B from US$ 1B. Overall, the total deal value Financial Investors & decreased slightly to US$ 2.4B from US$ 2.5B in the previous quarter. 1Alpha - ECM The investment landscape across the MENA region displayed significant contrasts. Israel recorded a notable 40% quarter - on - quarter increase in investment value, driven by a rise in average order values. This surge enabled Israel to capture approximately 80% of total MENA funding, up from 60% in the previous quarter. Devmalya Mukherjee In contrast, countries like the UAE, Egypt, and Saudi Arabia experienced a decline in funding amounts Director compared to the previous quarter. UAE particularly saw a decline by ~50% in their investment value. Financial Investors Tech remains the region's undisputed leader, with Software - as - a - Service (SaaS) being the most sought - after sector, followed by Consumer app & Platform. This report by 1Lattice aims to illuminate the key trends shaping the investment landscape within the MENA region during Q4 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 developments. © 1Lattice | 2
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Key takeaways ● MENA companies raised ~ US$ 2.4B across 113 deals (early, growth, late and PIPE stages) in Q4 CY24 ‒ Growth - stage deals witnessed an increase in $ value by ~50% on a Q - on - Q basis ● Average deal size increased by ~5% in Q4 CY24 in comparison to last quarter and majority of the deals were in early stage (68%) followed by growth (28%) ● Israel drew highest investment of ~US$ 1.8B followed by UAE (~US$ 270 M) and Saudi Arabia (~US$ 180M) ‒ Israel witnessed an increase in $ value by ~40% on a Q - on - Q basis fueled by an increase in average order value ● SaaS/AI was the most attractive sector for growth - stage (~US$ 1180M) and early - stage investments (~US$ 305M) ‒ Cyera , a SaaS/AI, received the highest funding of ~US$ 300M among growth - stage investments ‒ CredibleX , a consumer app & platform, received the highest funding of ~US$ 55M among early - stage investments ● Cybersecurity (~US$ 650M) & Fintech company (~US$ 530M) attracted highest tech investments in Q4 CY24
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 | 5
Key highlights Funding # Deal v olume Average ticket size US $ 2. 4 B 113 US$ 20.0M SNAPSHOT Q4 CY 2024 Top funded sector Most funded stage (by # of deals) Total tech funding SaaS / AI Growth US$ 2 . 2 B
Market by segments SaaS / AI leads funding followed by Consumer app & platforms in Q4 CY24 Funding market, segment - wise break - up Total funding size: US$ 2,377 M ( US$ M, Q4 CY24) 411 Consumer apps 1,540 & platforms 105 193 SaaS / AI Retail Healthcare & Life 129 Sciences * Others Note(s): *Others include manufacturing, transportation, e - commerce, energy, and FMCG © 1Lattice | 7 Source(s): Statistical reports, industry reports, secondary research, 1Lattice analysis
Agenda Deal landscape in Q4 CY24 Key deals and investment themes Key investors
Stage - wise investments Growth - stage deals witnessed an increase in $ value by ~50% on a Q - on - Q basis 1 Investment amount (US$ B) and # deals ( Q4 CY23 – Q4 CY24 ) 2.4 2.5 2.2 125 113 123 0.3 2.1 2.0 100 0.05 89 0.3 0.2 0.4 1.2 0.6 1.7 1.2 1.1 0.5 1 0.7 0.7 0.6 0.6 Q4 CY23 Q1 CY24 Q2 CY24 Q3 CY24 Q4 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 © 1Lattice | 9 Source(s): 1Lattice Deals Database
Country - wise investments Israel drew highest investment of ~US$ 1.8B followed by UAE (~US$ 270 M) and Saudi Arabia (~US$ 180M) Investment amount (US$ M) and # deals ( Q4 CY24 ) Avg. deal size 32.0 12.1 11.5 50 3.1 (US$ M) = % c hange over last 29% - 49% - 13% - - quarter in $ Israel witnessed 57 a ~30% increase in value from US$ 1.4B last 1,825 quarter, fueled by an increase in average order value 22 17 16 1 266 184 50 63 Others* Saudi Arabia Bahrain UAE Israel Low High Amount Deals Note(s): *Others include Egypt, Jordan, Tunisia, Morocco, Lebanon and Qatar © 1Lattice | 10 Source(s): 1Lattice Deals Database
Average deal size Average deal size increased by ~5% in Q4 CY24 in comparison to last quarter; Majority of the deals were in early stage (68%) followed by growth (28%) 1 Split of deal volume Average deal size (#, Q4 CY23 – Q4 CY24 ) (US$ M, Q4 CY23 – Q4 CY24 ) 23.8 # of 21.7 89 125 100 123 1 13 deals = 21.0 20.1 1% 1% 5% 4% 4% 2% 1% 6% 20% 19% 24% 10% 28% 15.9 79% 79% 76% 73% 68% Q4 CY23 Q1 CY24 Q2 CY24 Q3 CY24 Q4 CY24 Q4 CY23 Q1 CY24 Q2 CY24 Q3 CY24 Q4 CY24 2 Early Growth Late Others 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 © 1Lattice | 11 Source(s): 1Lattice Deals Database
Agenda Deal landscape in Q4 CY24 Key deals and investment themes Key investors
Top 10 investments in Q4 CY24 Top 10 investments in MENA region in Q4 CY24 accounted for approximately 50% of the total investments Top 10 investments in Q4 CY24* Amount Funding Company Sector Country Key Investors (US$ M) stage SaaS/AI 300 Growth Israel Accel, Sapphire Ventures, Sequoia, Redpoint, Coatue, Georgian SaaS/AI 200 Growth Israel General Catalyst, Alkeon Capital, Brookfield, Georgian Capital One, Frontline Ventures, Accel, Bessemer, Coatue, General SaaS/AI 150 Growth Israel Catalyst, Latitude, Thrive Capital Consumer app & 100 Growth Israel JMI Equity platforms Retail 100 Growth UAE General Atlantic, Badwa Capital, Turmeric Capital Arboretum Ventures, Johnson & Johnson Innovation, Catalio Healthcare & Life Capital Management, Freepoint Capital Group, Visionary Ventures, 68 Growth Israel Bluestem Capital, SBI (Japan) Innovation Fund, Sequoia Capital, Sciences Maverick Ventures SaaS/AI 67.5 Growth Saudi Arabia General Catalyst, Bain Capital Ventures, Arbor Ventures Lightspeed Venture Partners, NFX , Picture Capital, Glilot Capital SaaS/AI 58 Growth Israel Partners Insight Partners, M12 , BGV, Capital One Ventures, Engineering SaaS/AI 55 Growth Israel Capital, Vertex Ventures Consumer app & 55 Early UAE Further Capital platforms 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$ 305M) among early - stage investments Top 10 early - stage investments in Q4 CY24* Early - stage investments, by sector Amount Company Sector Country Key Investors (US$ M, Q4 CY24 ) (US$ M) United Arab Consumer app 55 Further capital & platforms Emirates Saas/AI 306.4 Toyota Ventures, Triventures, Samsung Next, ACTIVE fund, Assembly Ventures, Magenta SaaS/AI Venture Partners, J - Ventures, Singtel Innov8 Israel 27 Consumer app & platforms 173.5 Ventures, Wayra Telefónica, Team8, Alter Venture Partners Healthcare & Life Sciences 40.1 Creandum, Glilot Capital Partners, Play Consumer app Israel 26 Ventures, Moneta Ventures, BITKRAFT & platforms Manufacturing Ventures, Supercell 13.0 SaaS/AI Israel 25 Ballistic Ventures Ecommerce & listing platforms 10.8 Web3Port, Aptos Labs, Summer Ventures, United Arab Consumer app Heritage Horizon Capital, V2 Capital, Alpha 25 & platforms Square Group, Heng Feng Group, Trend Transportation & logistics Emirates 6.8 Investment, Bond Group Norwest Venture Partners, ServiceNow SaaS/AI Israel 21 Retail 5.0 Ventures, Columbia Capital, Inner Loop Capital SaaS/AI Israel 21 Sequoia Capital, Oren Zeev 4.5 FMCG Drive Capital, Verissimo, AirAngels, Lurie SaaS/AI Israel 21 1.0 Consulting BFSI Others include restaurants and Salesforce Ventures, Index Ventures, Entree SaaS/AI Israel 20 management Capital, Sheva VC, Vesey Ventures Others 23.4 services Red Dot Capital Partners, Unusual Ventures, SaaS/AI Israel 17.5 Emerge Ventures, Redseed , Cerca Partners Note(s): * These include deals only with disclosed deal amounts; Early - stage investments include Pre - seed, Seed, Pre - series and Series A © 1Lattice | 14 Source(s): 1Lattice Deals Database
Top early - stage investments Top funded early - stage* startups with their competitors Company Description Competitors Provider of a lending as a service platform for lenders Provider of a cloud - based platform to securely connect and manage IoT and mobile devices Direct - To - Consumer platform for mobile game publishers A platform for AI security Online platform offering exchange and trading of cryptocurrencies and crypto wallets Note(s): *Early - stage investments include Pre - seed, Seed, Pre - series and Series A © 1Lattice | 15 Source(s): 1Lattice Deals Database
Growth - stage investments SaaS / AI dominated growth - stage investments* (~US$ 1180M) Top 10 growth - stage investments in Q4 CY24 Growth - stage investment, by sector Amount (US$ M, Q4 CY24 ) Company Sector Country Key Investors (US$ M) Accel, Sapphire Ventures, Sequoia, SaaS/AI Israel 300 Redpoint, Coatue, Georgian SaaS/AI 1181 General Catalyst, Alkeon Capital, SaaS/AI Israel 200 Brookfield, Georgian Capital One, Frontline Ventures, Accel, Consumer app & Platform 238 SaaS/AI Israel 150 Bessemer, Coatue, General Catalyst, Latitude, Thrive Capital Consumer app Israel 100 JMI Equity Healthcare & Life Sciences 153 & platforms General Atlantic, Badwa Capital, Turmeric Retail UAE 100 Capital Arboretum Ventures, Johnson & Johnson Retail 100 Innovation, Catalio Capital Management, Healthcare & Freepoint Capital Group, Visionary Israel 68 Life Sciences Ventures, Bluestem Capital, SBI (Japan) Transportation & Logistics 11 Innovation Fund, Sequoia Capital, Maverick Ventures General Catalyst, Bain Capital Ventures, SaaS/AI Saudi Arabia 67.5 Arbor Ventures Energy 10 Lightspeed Venture Partners, NFX , SaaS/AI Israel 58 Picture Capital, Glilot Capital Partners Others include Insight Partners, M12 , BGV , Capital One restaurants and Others SaaS/AI Israel 55 47 drone systems Ventures, Engineering Capital, Vertex Ventures Arab financial SaaS/AI Bahrain 50 Others services Note(s): *Growth - stage investments include Series B, C, D and E; The table includes deals only with disclosed deal amounts © 1Lattice | 16 Source(s): 1Lattice Deals Database
Top growth - stage investments Top funded growth - stage* startups with their competitors Company Description Competitors Platform offering cloud data security solutions Provider of a wireless security platform for IoT applications An accounts payable solutions for vendor payments Develops a property management platform Eyewear retailer Note(s): Growth - stage investments include Series B, C, D and E © 1Lattice | 17 Source(s): 1Lattice Deals Database
Tech investments Cybersecurity (~650M) & Fintech (~530M) attracted highest tech investments in Q4 CY24 Top 10 tech investments in Q4 CY24* Amount Tech investments, by sector Company Sector Country Key Investors (US$ M) (US$ M, Q4 CY24 ) 0.0 Accel, Sapphire Ventures, Sequoia, SaaS/AI Israel 300 Redpoint, Coatue, Georgian Cybersecurity 653.3 General Catalyst, Alkeon Capital, SaaS/AI Israel 200 FinTech 531.6 Brookfield, Georgian Capital One, Frontline Ventures, Accel, EnterpriseTech 216 SaaS/AI Israel 150 Bessemer, Coatue, General Catalyst, Media & entertainment 114.5 Latitude, Thrive Capital Consumer app Cloud services & Infrastructure 107 Israel 100 JMI Equity & platforms Developer Tools and Platforms 100.2 Arboretum Ventures, Johnson & Johnson Innovation, Catalio Capital Management, Pharma & Biotech 73.5 Healthcare & Freepoint Capital Group, Visionary Israel 68 Ventures, Bluestem Capital, SBI (Japan) Life Sciences Analytics 61.1 Innovation Fund, Sequoia Capital, HealthTech Others include Maverick Ventures 54 rental services, General Catalyst, Bain Capital Ventures, a utotech , logistics, Consumer healthcare SaaS/AI Saudi Arabia 67.5 38.5 Arbor Ventures retail, fashion & lifestyle, agritech , EdTech 32 Lightspeed Venture Partners, NFX , SaaS/AI Israel 58 networking, Picture Capital, Glilot Capital Partners energy, Drone 31 Insight Partners, M12 , BGV , Capital One management services, and SaaS/AI Israel 55 Advertisement & Sales Ventures, Engineering Capital, Vertex 13.3 environmental Ventures technology Event Management 10 United Arab Consumer app 55 Further capital & platforms Emirates Others 111.1 Arab financial SaaS/AI Bahrain 50 Others services Note(s): *These include only disclosed deal amounts © 1Lattice | 18 Source(s): 1Lattice Deals Database
Top M&As Top M&As in Q4 CY24 Top M&As in Q4 CY24 Amount Acquired Company Sector Country Date Acquirer (US$ M) Modern times Consumer app & Platform Israel 620 November, 2024 group Energy Israel 320 November, 2024 SaaS/AI Israel 300 November, 2024 SaaS/AI Israel 271 December, 2024 SaaS/AI Israel 162 October, 2024 SaaS/AI Israel 150 December, 2024 SaaS/AI Israel` 115 November, 2024 Note(s): Includes top M&A deals whose amounts were disclosed © 1Lattice | 19 Source(s): 1Lattice Deals Database
Agenda Deal landscape in Q4 CY24 Key deals and investment themes Key investors
Active investors Most active investors of Q4 CY24 Growth - stage investors Early - stage investors (# deals) (# deals) 3 3 3 3 3 © 1Lattice | 21 Source(s): 1Lattice Deals Database
Active early - stage investors Most active early - stage investors and their investment segments in Q4 CY24 Ecommerce Consumer Healthcare & Investors & listing Retail BFSI SaaS/AI app & Others Life sciences 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 Q4 CY24 Ecommerce & Consumer Healthcare & Investors Retail BFSI SaaS/AI Others listing app & Life sciences 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 Devmalya Mukherjee Director , Financial Investors & 1Alpha - ECM Director, Financial Investors E: praneet.singhal@1lattice.com E: devmalya.mukherjee@1lattice.com For media queries, please contact Urbashree Bayan Associate Manager – Corporate Communications E: communications@1lattice.com 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 conditions. Any use of the information provided herein by the viewer shall be at the sole r is k 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 1La ttice does not hold any liability in connection therewith.
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