Startup Wrap: MENA founders secure millions as new growth capital enters the market

Startups across the Middle East and North Africa secured at least $7.4 million in disclosed funding over the past week, while new growth capital entered the Saudi market with the launch of a dedicated fund. Deals spanned artificial intelligence, education technology, fintech and taxtech, and included a multi-seven-figure acquisition in Egypt’s private capital sector and multiple seed and pre-seed rounds across the region.

"The fund will invest in Saudi technology companies through primary funding rounds and secondary transactions, targeting fintech, e-commerce, health and lifestyle, as well as businesses addressing urban living, mobility and real estate," Pinnacle said, outlining the mandate for its new Saudi growth-stage venture fund affiliated with the Watar Partners network.

The week’s largest single disclosed raise came from MENA-born voice AI startup HeyBreez, which closed a $2.5 million oversubscribed seed round led by Lunara Partners with participation from Jabbar Group, DASH Ventures and angel investors. Founded in 2025 by Karim Malhas and headquartered in Delaware with offices in Amman and Dubai, HeyBreez provides enterprise voice AI infrastructure — telephony, callbacks, follow-ups and integrations — and says its platform processes more than 1 million calls a month across MENA, Europe, the US and Latin America. The company will use the funds to accelerate product development, expand headcount and scale sales across the Middle East, the Americas, Europe and Asia-Pacific.

Saudi edtech AILA raised $3 million in a pre-series A round led by Rua Growth Fund, with participation from Jo Academy, 500 Global, Bunat VC and Fikr Ventures. Founded in 2023 by Yousef Al‑Sayed, Nouf Mugayel and Abdulaziz Bin Mugayel, AILA offers AI-powered personalized learning technology that identifies learning gaps and delivers tailored assessments, practice and performance insights. The fresh capital is earmarked for regional and international expansion and further development of the company’s AI capabilities.

Other notable financings and transactions this week included:

• Tax Star — a UAE tax technology startup founded in 2023 by Rayhan Aleem and Haris Tasawar — raised $1.75 million in a seed round primarily backed by angel investors. The AI-powered corporate tax and compliance platform is a pre-approved Accredited Service Provider for the UAE’s upcoming electronic invoicing system and will use proceeds to scale go-to-market activities and product development.
• Rozenama — an Iraqi e-commerce platform founded in Baghdad by Abbas Muhil — secured $150,000 in a pre-seed round from Iraqi entrepreneur and Aljasmi Perfumes CEO Mohammed Haider.
• XSquare — a UAE-based B2B payment orchestration platform founded in 2023 by Tanvir Shah and Ashwin Shenoy — closed an undisclosed pre-seed round led by Raed Ventures with participation from AngelSpark, 500 Global and Oraseya Capital and is preparing a Saudi launch following its Qatar expansion.
• Cyfr Capital completed investments in five Omani startups from its Seed Fund in collaboration with Future Fund Oman, backing Sooq Cars, iO Eats, Darrbak, Decoil and Pack’N; specific deal values were not disclosed.
• Exits MENA signed a multi-seven-figure agreement to fully acquire Avanz Capital Egypt; the firm will be rebranded as Exits Manara and continue managing the Manara 1 fund of funds while planning a Manara 2 for export-focused investments. Avanz’s management, led by CEO Haytham Wagih, will remain in place.

Market participants said Pinnacle’s new growth-stage vehicle aims to address limited exit pathways by providing primary growth capital and secondary liquidity to established Saudi tech companies. With several regional startups boosting R&D and cross-border expansion plans through this week’s rounds, the immediate outlook points to continued investor interest in sector-specific SaaS, voice AI, fintech and edtech solutions — particularly those with proven traction and clear paths to regional scale.