MENA’s Investment Pulse: What Indian Investors Can Learn from October’s Cooldown

After a historic September, startup funding across the Middle East and North Africa (MENA) took a breather in October. Total investments fell sharply to around $785 million across 43 deals, a significant dip from September’s record-breaking surge. Yet, what might look like a slowdown actually signals a maturing market, where funding activity is stabilising after an exceptional quarter.

Debt financing remains the benchmark across the region. Four major rounds of debt financing accounted for nearly three-quarters of all the capital raised, indicating that late-stage and asset-backed startups are indeed leveraging structured finance as a means of scaling efficiently. This aligns with a global trend where founders are increasingly turning to debt as a means of growth, rather than solely relying on pure equity dilution.

The UAE regained its position as a funding hub, with over $600 million in funding driven by a large prop-tech transaction, while Saudi Arabia maintained steady traction. Egypt made a notable comeback, securing $33 million in funding, one of the best performances in recent months. Morocco also had a strong showing, underscoring how North Africa is gradually becoming a reliable contributor to the regional ecosystem.

Interestingly, prop-tech surpassed fintech for the top spot in value, illustrating how investors are backing more tangible, asset-linked opportunities. Early-stage activity remained solid, particularly in seed and Series A rounds, as investors looked for high-upside ventures with more reasonable valuations.

Consumer-focused startups outpaced enterprise players in terms of business model, raising nearly four times more capital; yet, the persistent gender funding gap remains a cause for concern, as women-led startups continue to capture only a small share of total funding.

For Indian investors, the MENA region presents a compelling parallel to India’s own growth story of a few years ago. With maturing founders, expanding digital adoption, and increasing cross-border collaboration, the region offers a strategic entry point for partnerships, venture investments, and debt participation.

As MENA heads into the final quarter, the region’s measured pace of funding suggests not a decline but a sustainable rhythm—one that smart investors from India would do well to watch closely.