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MENA startup funding falls to $228 million in November 2025, down 71% MoM

Nesma Abdel Azim

• 08 December, 2025

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Investment activity across the MENA startup ecosystem slowed sharply in November 2025, with 35 startups raising a combined $227.8 million. That marks a steep drop from the $784.9 million recorded in October and a 12% decline compared to November last year. The pullback reflects a market in consolidation mode as funds rebalance portfolios after an unusually active year.

More than half of last month’s total was driven by a single debt-backed transaction from erad, which alone propelled Saudi Arabia to the top of the regional leaderboard. Across 14 deals, the Kingdom attracted $176.3 million, accounting for over three-quarters of all capital deployed in November.

Capital narrows to five markets

Despite activity spanning 35 startups, funding was tightly concentrated in just five countries. After Saudi Arabia’s dominant lead, the UAE followed with $49 million across 14 deals. Egypt saw a muted month with just $1.12 million across four transactions, while Morocco recorded $1.1 million through two deals. Oman logged one deal with an undisclosed value. Outside these markets, investment activity was largely absent.

This concentration signals growing selectivity rather than a broad-based acceleration, particularly as the year approaches its close.

Fintech rebounds on the back of debt

Sector-wise, fintech regained its lead in November, pulling in $142.9 million across nine deals, largely driven by the same debt-heavy transaction that shaped the month. At a distant second, e-commerce secured $24.5 million across six rounds. Proptech, which topped the charts in October, slipped to third with $18.9 million raised by three startups.

This mix points to a market still prioritising revenue-linked and utility-driven models over long-horizon bets, with fintech retaining its structural appeal while consumer-facing sectors continue to grow at a more measured pace.

Early-stage equity, zero late-stage appetite

Debt dominated the month, accounting for more than $125 million through one transaction alone. The remaining capital was almost entirely channelled into early-stage startups. Notably, no later-stage rounds were recorded in November, underlining investor caution as valuations reset and deployment slows.

From a business model perspective, B2B startups captured the vast majority of capital, with 20 companies raising $197.1 million. B2C startups lagged far behind, with nine companies raising just $22.2 million. The rest was split across hybrid business models.

Gender gap continues to widen

The gender funding gap showed no signs of narrowing. Male-led startups absorbed 97% of the capital raised in November, with only the residual share allocated to female-led and mixed-gender founding teams. The disparity remains structural rather than cyclical.

What is this really signalling?

While the slowdown marks the quietest month of the quarter, it does not point to structural weakness. Instead, it reflects a pause for recalibration after a year dominated by large sovereign-backed and foreign-led investments. The absence of late-stage equity, the dominance of debt, and the concentration around a single market all suggest that investors are preserving firepower for 2026.

The coming year is increasingly expected to be shaped by mega rounds in AI and the industries built around it. November looks less like a warning sign and more like the breath before another acceleration cycle.

Darren Yuen believes purpose only comes alive when people take responsibility and feel proud of their work. He explains that ‘LOVE’ — Learning, Ownership, Visibility, and Experience — is the framework that brings this to life. When lived with intention, it fuels growth and channels passion, turning everyday work into something meaningful.

Being named the gold winner for ‘Most People-Focused CEO’ at the HR Excellence Award 2025, Malaysia was a moment of quiet pride for Darren Yuen, Chief Executive Officer – not for the title itself, but for what it represents. For him, this recognition reflects a year shaped by intention, compassion, and a shared commitment to nurturing IPG Mediabrands’ people.

What began as his personal vision became a collective effort, carried forward by many who embraced it with heart. This award, he believes, is a testament to that unity. It affirms the path they’ve taken and fuels their resolve to keep building a workplace where their people continue to grow, belong, and thrive together.

This strength and collective spirit have also led Darren and his team to win numerous other accolades at the awards:

• Gold for Excellence in Business Transformation
• Gold for Excellence in Hybrid Working,
• Gold for Excellence in Recovery & Rebound Strategy,
• Gold for Excellence in Agile Talent Mobility, and 
• Silver for Excellence in Work-Life Harmony. 

Reflecting on this recognition with HRO, Yuen shares what people-first leadership truly means to him.

Q Congratulations on being named the People-Focused CEO of the Year! What does this recognition mean to you?

It’s a deeply fulfilling achievement, and one that holds a lot of meaning for me. 

Nurturing our people has been a core focus this year. It has been a vision of mine, and supporting me, there have been many people who have helped cascade this vision with a lot of heart. This recognition validates that dedication. It has also given us renewed energy, knowing that we’re on the right path this year. That collective commitment towards our people is what’s reflected in this award, and I’m incredibly proud of what we’ve achieved together. 

Q You’ve spoken about leading with a people-first mindset. Could you share one top initiative you have championed at IPG Mediabrands that you believe contributed most to this award?

The mystery getaway series. With nearly 450 people in the organisation, expecting everyone to build relationships organically is unrealistic, especially with our daily demands.  

The team-building getaways allowed us to see each other beyond job our titles. We weren’t just media planners or creative directors. We were just real people with interests, humour, and stories to share. We laughed together. We played together. We rode a bus together. And the camaraderie truly built through that process.  

This has made a world of difference in our daily interactions. We now get to work with people we truly know, not just colleagues we sit across from. Our business has grown not just because we worked harder, but because we worked as one. In this industry, and in life, success is never a solo act. Strength grows when we lift each other up.  

That’s the heart of people-first leadership. 

Q You pioneered the concept of ‘LOVE’ – Learning, Ownership, Visibility, and Experience. Tell us about this philosophy has reshaped employee engagement across the network?

Our priority has been creating a strong sense of purpose. Everyone needs to know that they truly fit and matter. And each of us has an important role to play.  Purpose only works when people take responsibility and feel proud of their work. LOVE (Learning, Ownership, Visibility, Experience) brings that to life.   

“When lived intentionally, it fuels growth and channels that burning passion, making the everyday experience of work meaningful. That sense of belonging is the key. It inspires momentum and a genuine devotion for us to keep going with pride.”

Q One of the things you believe in is the importance of asking “How can we help?”. How has this simple question influenced client relationships and internal culture?

This seemingly very simple question has been a real gamechanger. It shows initiative. Instead of selling campaigns or packages, we take ownership of our clients’ challenges, building trust and creating lasting partnerships.

Internally, asking “How can we help?” has done wonders as it has cultivated synergy through a sincere desire to help. It can be daunting to approach a senior leader for support, but when the question comes from them, it opens a door. And suddenly, support flows both ways.

We’ve managed to foster a sense of togetherness like no other, where everyone is looking out for one another, and it has been amazing to see the ripple effects of this.

Q What advice would you give to other leaders who aspire to build a people-powered organisation that drives both culture and commercial success?

Acknowledge that we don’t know everything. To be truly people-focused, we need to learn and listen before we direct. That’s how you understand what drives your teams, what they care about, and what they aspire to become.

Then, it simply comes down to motivating the teams toward small wins that support the long-term goals. These little victories guide us towards building a habit of success over time.

Lastly, like anything meaningful, it takes practice. I keep saying: The more we practice, the luckier we get!

Read more interviews on why organisations have won trophies for their HR practices – head over to our Winning Secrets section!

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