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

RIYADH: Startups across the Middle East and North Africa secured at least $7.4 million in funding over the last week, across sectors including artificial intelligence, education, and financial technology.

The latest announcements also cover a new Saudi growth-stage fund, investments in five Omani startups and a multi-seven-figure acquisition in Egypt’s private capital sector. 

Pinnacle launches Saudi growth-stage venture fund 

Saudi Arabia-based Pinnacle has launched a venture capital fund focused on growth-stage companies and secondary investments in the Kingdom. 

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, which is affiliated with the Watar Partners network of firms, said the strategy seeks to provide growth capital and additional liquidity to established Saudi companies in a market with limited exit opportunities. 

MENA voice AI startup HeyBreez raises $2.5m 

MENA-born enterprise voice artificial intelligence startup HeyBreez has raised $2.5 million in an oversubscribed seed round led by Lunara Partners, with participation from Jabbar Group, DASH Ventures and angel investors. 

Founded in 2025 by Karim Malhas, HeyBreez is headquartered in Delaware and has offices in Amman and Dubai. Its platform provides infrastructure for deploying and managing enterprise voice AI agents, including telephony, callbacks, follow-ups and integrations. 

The company said its platform processes more than 1 million calls a month for enterprises, agencies, developers and AI companies across the Middle East and North Africa, Europe, the US and Latin America. 

HeyBreez will use the funding to develop its platform, expand its team and support sales growth across the Middle East, the Americas, Europe and Asia-Pacific. It previously raised a $1.3 million pre-seed round led by Wamda Capital in January 2026. 

Saudi edtech AILA raises $3 million 

Education technology company AILA has 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, the Saudi Arabia-based firm develops AI-powered personalized learning technology that identifies learning gaps and provides tailored assessments, practice and performance insights. 

The funding will support regional and international expansion, further development of AILA’s AI capabilities and wider adoption among students, educators, schools and education systems. 

AILA previously closed a $1.15 million pre-seed round in 2024, led by Sabah Hub with participation from White Hill Capital and three Saudi angel investors. 

UAE fintech XSquare raises pre-seed funding 

UAE-based fintech XSquare has raised an undisclosed pre-seed round led by Raed Ventures, with participation from AngelSpark, 500 Global and Oraseya Capital. 

Founded in 2023 by Tanvir Shah and Ashwin Shenoy, XSquare is developing a business-to-business payment orchestration platform that combines payment rails, collections, payments and reconciliation in a single system. 

The company operates in the UAE and Qatar, with its Qatar launch marking its first cross-border expansion. 

It will use the funding to expand its banking and payment partnerships, grow its engineering and commercial teams and launch in Saudi Arabia. 

XSquare also raised an undisclosed investment from AngelSpark earlier in 2026. 

Cyfr Capital invests in five Omani startups 

Venture capital firm Cyfr Capital has completed investments in five Omani startups through its Seed Fund in collaboration with Future Fund Oman. 

The investments went to automotive marketplace Sooq Cars, food delivery platform iO Eats, tourism marketplace Darrbak, as well as AI and data company Decoil and packaging and storage provider Pack’N. 

Sooq Cars has more than 1 million users, while iO Eats operates cloud kitchens across six locations serving more than 30 restaurants. Darrbak provides access to more than 260 tourism experiences from over 76 local providers. 

The value of the individual investments, the total capital deployed and the stakes acquired were not disclosed. 

Exits MENA strikes multi-seven-figure Avanz Capital Egypt deal 

Egypt-based investment advisory platform Exits MENA and the local management of Avanz Capital Egypt have signed a multi-seven-figure deal to fully acquire the private equity and asset management firm. 

Founded in 2022 by Mohamed Nagaty, Ayman El-Tanbouly and Ahella El-Saban, Exits MENA provides mergers and acquisitions, fundraising, investment readiness and advisory services to startups and small and medium-sized enterprises. 

The transaction has received initial approval from Egypt’s Financial Regulatory Authority. Avanz Capital Egypt’s existing management, led by CEO and Managing Director Haytham Wagih, will remain in place. 

The company will be rebranded as Exits Manara and operate as Exits MENA’s private capital and asset management subsidiary. 

It will continue managing the Manara 1 fund of funds and plans to launch Manara 2 for Export Investments, targeting mid-sized Egyptian exporters pursuing international expansion. 

UAE taxtech Tax Star raises $1.75m

Tax technology startup Tax Star has raised $1.75 million in a seed round primarily backed by angel investors. 

Founded in 2023 by Rayhan Aleem and Haris Tasawar, the UAE-based company provides an AI-powered corporate tax and compliance platform. 

It is also a pre-approved Accredited Service Provider for the UAE’s upcoming electronic invoicing system. 

The company will use the funding to expand its go-to-market activities, develop the platform and help businesses comply with the country’s e-invoicing requirements. 

Iraqi e-commerce startup Rozenama raises $150,000 

E-commerce startup Rozenama has raised $150,000 in a pre-seed round from Iraqi entrepreneur and Aljasmi Perfumes CEO Mohammed Haider. 

Founded in Baghdad by Abbas Muhil and Mohammed Fawzi, Rozenama provides an e-commerce platform for Iraqi merchants that integrates local delivery companies, payment methods and cash-on-delivery infrastructure. 

The company said its number of active merchants increased from 250 to more than 900 over the past 12 months, while registered users exceeded 13,000. 

The funding will provide engineering runway, support the launch of a rebuilt platform on Aug. 25 and finance expansion among merchants outside Baghdad.