Week 40: Africa and Middle East Startup Funding

Startups across Africa, the Middle East and Israel raised a combined $65.2 million this week, led by Israel-based HyperGuest’s $25 million round and Saudi fintech erad’s $22 million Series A. Investor appetite concentrated in AI and fintech, with additional notable rounds including a $12 million seed for AI cybersecurity firm Rig Security and a $5 million Series A for UAE beauty company Amaani.

"Apax Partners put in $25 million through its mid-market investment arm, AMI, and HyperGuest is using it to grow as AI tools start changing how people search for and book hotels," the company said, underscoring investor conviction in travel tech that integrates AI into distribution and bookings.

Week's largest disclosed rounds

• HyperGuest — $25M (AI travel tech, Israel): HyperGuest builds the behind-the-scenes technology that lets hotels connect directly with booking sites, travel agencies and AI agents without separate setups for each partner. The round was led by Apax Partners via its AMI arm.
• erad — $22M (fintech, Saudi Arabia): Riyadh-based erad raised a $22 million Series A led by MEVP. The company provides Shariah-compliant working capital to small and medium businesses that traditional banks often turn down, and is developing financing products for capital-heavy sectors such as logistics and manufacturing.
• Rig Security — $12M (AI cybersecurity, Israel): Emerging from stealth in Tel Aviv, Rig Security claims to distinguish between real employees and AI agents impersonating them within corporate systems. The $12 million seed was co-led by Ten Eleven Ventures and Brightmind Partners, with backing from CrowdStrike's venture arm and Wiz co-founder Ami Luttwak. Rig Security said the funds will be used for "research, engineering and growing in the US."
• Amaani — $5M (consumer, UAE): Dubai-based Amaani, the company behind AÏZA skincare and haircare built around Middle Eastern beauty traditions, closed a $5 million Series A led by BECO Capital, with participation from Homegrown Ventures and Peak XV's Surge. Amaani plans to use the investment to launch AÏZA at Ulta Beauty stores in Saudi Arabia, and to expand into Kuwait and Qatar next.

These rounds reflect distinct regional strategies: Israeli startups are capturing AI-focused capital across travel and cybersecurity, while Gulf-based companies attracted fintech and consumer funding aimed at regional expansion. HyperGuest’s investment from Apax Partners highlights interest in travel tech platforms that can plug hotels into a growing web of AI-enabled booking channels. erad’s financing, led by MEVP, signals continued investor appetite for Shariah-compliant financial products that address gaps in SME access to working capital.

Rig Security’s emergence from stealth and its backers — including Ten Eleven Ventures, Brightmind Partners, CrowdStrike’s venture arm and Wiz co-founder Ami Luttwak — point to heightened concern among investors about AI-driven identity risks inside enterprise systems. "Rig Security just came out of stealth in Tel Aviv with a way to tell the difference between a real employee and an AI agent pretending to be one," the company noted as it outlines plans for U.S. expansion.

Looking ahead, the week’s $65.2 million in disclosed funding suggests a continued flow of capital into startups that blend AI with traditional industries, plus targeted bets on region-specific consumer and fintech opportunities. With funds earmarked for product development and market expansion, the coming quarters should reveal which of these companies convert investor confidence into broader commercial traction across their respective markets.