Startup wrap — Early stage funding momentum, IPO plans continue in MENA region

Startups across the Middle East and North Africa continued to attract investor interest last week, with regional companies announcing multiple funding rounds even as geopolitical tensions persisted. According to Wamda data cited in the coverage, startups in the region raised a combined $326.6 million across 62 deals in February, building on a record $7.5 billion raised in 2025 — a 225 percent increase year on year.

“Despite ongoing regional sensitivities that continue to influence global markets, our collective confidence reaffirms the resilience of the GCC’s venture capital landscape and the region’s broader financial ecosystem,” said Steve Khayat, founder and CEO of Phoenix Venture Partners. “Now more than ever, we reaffirm our commitment, with a steady hand and a firm vision, to our investors, to the founders we invest in, and to the wider ecosystem in the Abu Dhabi Global Market, as well as across the GCC and MENA’s venture community.”

Notable rounds and moves

• GAGA — $2.5 million pre-Series A: Saudi edtech GAGA raised $2.5 million in a pre-Series A round led by Phoenix Venture Partners, with participation from family offices and individual investors, taking its total funding to $4.2 million. Founded by Abdullah Al-Kharsani and Eyad Al-Shabaan, GAGA offers live online classes for students aged four to 18, with over 1,000 programs across 200 subjects. The company said it will use the capital to expand its teacher network, enhance its technology stack, scale Arabic-language content across Saudi Arabia, and strengthen AI capabilities to deliver “more adaptive and data-driven learning experiences.”
• MovitOn — $2 million community pre-sale: UAE-based Web3 logistics platform MovitOn closed a $2 million community pre-sale to accelerate development of its core features, including MovitBox smart IoT terminals, AI-driven compliance systems, and a planned mainnet launch later this year. Founder Erik Beken Tleubeck said: “This $2 million pre-sale validates our vision, where every traveler becomes a trusted courier, and every user can ship globally without barriers. Community support confirms the demand for a decentralized, AI-powered logistics solution that addresses the inefficiencies and restrictions inherent in traditional shipping services.” Co-founder and chief architect Vadim Andryan added: “MovitOn resolves all primary challenges simultaneously. We are constructing an entire Web3 ecosystem that bridges Web2 users into the decentralized economy, while delivering tangible value through our real-world asset transformation model.” The company claims its platform can deliver up to 75 percent cost reduction compared with traditional carriers.
• Ninja — exploring an IPO: Saudi quick-commerce platform Ninja, founded in 2022, is exploring a potential initial public offering and has engaged investors including at a London banking conference to assess listing appetite. The online supermarket generated approximately $1 billion in revenue in 2025 and is targeting $1.6 billion in 2026. Ninja is valued at $1.5 billion and secured $250 million in funding led by Riyad Capital in 2025, and is finalizing IPO plans and advisers with an eye on a possible listing later this year.
• Phoenix Venture Partners — third close of inaugural fund: UAE-based Phoenix Venture Partners announced the successful third closing of its inaugural fund, which targets early-stage startups in fintech, health tech, edtech and energy with a focus on MENA and global opportunities. The fund remains open to additional commitments ahead of an October 2026 final close to boost support for emerging GCC startups.
• Blossom Accelerator — DominAite: Saudi Arabia’s Blossom Accelerator launched a national AI scale and investment platform, DominAite, aligned with the Kingdom’s declaration of 2026 as the year of AI. The three-month accelerator will offer venture capital through Blossom Capital, technical enablement, market-entry support, and enterprise and government pilot opportunities.

Outlook: Investors and founders in MENA appear to be pushing ahead with growth and liquidity plans despite regional sensitivities. With early-stage funds like Phoenix Venture Partners expanding commitments, high-profile companies such as Ninja preparing IPO roadmaps, and niche players like MovitOn and GAGA closing rounds to scale technology and content, the pipeline of deals and exits is likely to remain active through 2026 — contingent on broader market conditions and execution on product and regulatory milestones.