Egypt's startup funding surges 130% to $228M in Jan.-May

Workers pack dates at a production line of Linah Farms, a leading producer of Medjool dates in Egypt and the Middle East, in Menoufia Governorate, Egypt, Oct. 28, 2024. [Photo/Xinhua]

Egypt's startup sector attracted $228 million in funding from January to May, marking a 130% increase compared to the same period last year, the Egyptian government said on Sunday.

A total of 16 deals were executed during the five-month period, including 11 with disclosed investment volumes totaling 156 million U.S. dollars. Additionally, real estate startup "Nawy" and fintech company "MNT-Halan" secured debt financing worth 23 million and 49 million dollars, respectively, the Ministry of Planning, Economic Development and International Cooperation said in a statement.

"These indicators reflect the continuous activity in Egypt's startup market, particularly with the measures taken by the state to improve the investment climate and business environment," said Rania Al-Mashat, minister of Planning, Economic Development and International Cooperation and head of the Ministerial Group for Entrepreneurship.

She added that the government had taken significant steps to empower startups and enhance their ability to attract larger investments, "notably including tax incentives for companies with revenues less than 20 million Egyptian pounds (about 400,000 U.S. dollars)."

The property technology sector led in terms of venture capital investment volume, accounting for 33 percent of total investments, while the financial technology sector led in the number of deals, with five transactions representing 32 percent of the overall investment, the ministry noted.

The Ministerial Group for Entrepreneurship was launched in September 2024 to foster Egypt's startup environment through policy coordination, funding initiatives, and new proposals aimed at supporting early-stage companies, according to the statement.