Tunisian startups achieved a notable milestone in April 2023, as they successfully secured a funding of $549,000, according to Wamda's report.
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Loading... - Debra Martin
- 12 May 2023
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This achievement holds significant significance in light of the sharp decline in startup investments witnessed in the Middle East and North Africa (MENA) region. Compared to the previous month, there was a staggering 97% decrease in investments, and a significant 99% drop compared to April 2022.
Various factors have contributed to this decline, including the A&I and P&I holidays, as well as the aftermath of the Silicon Valley Bank crisis. Additionally, this decline is part of a global trend in which startup investments have been diminishing, largely influenced by the ongoing conflict in Ukraine.
Within the region, Tunisian startups excelled in securing funding during April, with a remarkable achievement of four successful financing rounds, amounting to a total of $549,000. In terms of total value, Tunisia ranks third in the region, following the United Arab Emirates and Saudi Arabia.
Notably, Drest.tn, through its collaboration with 216 Capital Ventures, managed to secure an impressive investment of over $336 million.
In total, April witnessed 11 deals, totaling $7 million, which is comparable to the investment levels observed in 2018 and 2019 when startup investments were considerably slower compared to the preceding two years.
The United Arab Emirates and Saudi Arabia secured investments of $3.6 million and $3 million respectively, while the Iraqi economy allocated a significant $125 million to a single startup.
However, it is unlikely that this trend will continue, as the scarcity of investments in startups is expected to persist, albeit possibly at a slower rate than the previous month.
In fact, May has already seen the announcement of several deals worth a total of $35 million. Nevertheless, Wamda cautions that valuations and revenues are anticipated to decline in the upcoming months, along with sales challenges for startups.
