The Evolution of Morocco’s Startup Ecosystem (2013-2023)

Over the last decade, Morocco has quietly emerged as a formidable player in the MENA startup scene, crafting a compelling narrative of tech-driven growth. At the heart of this rise are pioneering fintechs, resilient e-commerce ventures, and bold investors who see Morocco’s potential as a North African tech hub. Between 2013 and 2023, Moroccan startups have drawn millions in funding, capturing attention locally and internationally as they drive innovation across multiple sectors.

This report delves into Morocco’s funding landscape over the past ten years, examining year-over-year trends, sector leaders, record-breaking funding rounds, and the investors shaping the country’s tech future. Drawing comparisons with Tunisia, Egypt, and Bulgaria, the analysis sheds light on the unique dynamics defining Morocco’s evolving startup ecosystem.

Morocco’s startup funding has surged over the past decade, growing from roughly $1M in 2013 to a record $20M in 2021, driven by rising local and international investor interest. Initially dominated by seed and angel funding, the landscape evolved post-2019 with substantial venture capital inflows into fintech, e-commerce, and health tech. Despite a dip to $10.7M in 2022, momentum resumed in 2023, with $15M raised in just the first half, underscoring Morocco’s position as an emerging North African tech hub with strong government and investor backing

Top-Funded Sectors in Moroccan Startups (2013-2023)

Over the past decade, Morocco’s startup funding landscape has evolved dramatically, with fintech, e-commerce, and logistics emerging as the leading sectors in attracting capital. As Moroccan startups gained regional traction, these sectors saw increased investment interest, fueled by demand for digital solutions, improved logistics, and financial accessibility.

Fintech

The fintech sector led in capital influx, experiencing steady growth driven by the digital payment and lending boom. With notable investments, such as Chari’s $5M Series A round in 2021, Morocco’s fintech companies tapped into an underserved financial market, providing digital tools and solutions that aligned with the broader financial inclusion goals across North Africa​.

E-commerce

Morocco’s e-commerce sector expanded rapidly, particularly post-2020 as the COVID-19 pandemic drove a shift to online retail. Supported by domestic and international investors, startups in this space capitalized on growing consumer demand, with companies like BMCE Bank eCommerce leading the charge. E-commerce platforms received crucial funding as Morocco saw a boom in online transactions, signaling a changing consumer landscape​.
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Logistics

Supporting the growth in e-commerce, logistics startups also drew substantial funding, with Morocco-based Logidoo’s recent $1.55 million seed round illustrating the demand for streamlined logistics solutions. Logidoo’s focus on cross-border logistics reflects the sector’s strategic importance as Morocco builds toward becoming a regional trade and e-commerce hub. With these funds, logistics companies aim to address operational gaps in inter-African trade, ensuring faster, more reliable supply chains​.

Top 5 funded startups in Morocco from 2013 to 2023

Over the past decade, Morocco’s startup ecosystem has witnessed a significant influx of investment, showcasing a blend of innovation and entrepreneurial spirit.

Leading the pack is Mubawab, a prominent real estate platform that raised around $20 million, largely funded by UAE-based EMPG. Following closely, Chari.ma, a B2B mobile application catering to local businesses, secured nearly $10 million with backing from Y Combinator and Global Founders Capital. Other notable mentions include Freterium and WaystoCap, both of which attracted approximately $7 million in funding, demonstrating strong interest in logistics and trading solutions.

Mubawab

~$20 Million

Backed By EMPG

Chari.ma

~$10 Million

Y Combinator, Global Founders Capital

Freeterium

~$10 Million

Y Combinator, Partech Partners

WaystoCap

~$7 Million

500 Global

Agenz

~$5 Million

Maroc Numeric Fund, Azur Innovation Fund

Funding Sources For Moroccan Startups in 2023:

In Morocco’s rapidly evolving startup ecosystem, several companies have successfully raised significant capital, positioning themselves as leaders in the market. In 2023, the investment scene saw a remarkable surge, with overall investments increasing by 93% compared to the previous year​.

This momentum is driven by various public and private investment funds designed to stimulate innovation across the country.

Notable funding initiatives include:

*Please note that these figures are approximate and based on available data. Actual numbers may vary.

This chart illustrates the distribution of funding provided by key initiatives supporting the Moroccan startup ecosystem. Fonds Maroc Numérique, established in 2010, has contributed the largest share, reflecting its significant role in fostering the digital economy

Fonds Maroc Numérique: Established in 2010, this fund has invested $25 million in 26 startups. It plays a critical role in fostering the digital economy in Morocco​

Founders 212: Launched in 2019 by the State Fund for Management and Deposits, this initiative added $12 million to the ecosystem and plans to expand its financial support in the coming years.

UM6B Entrepreneurship Fund: Backed by the Mohammed VI University of Technology, this fund has invested $7 million since its inception, with plans to increase its investments to $50 million, focusing on deep-tech startups.

Comparison of Morocco’s funding landscape with Tunisia, Egypt, and Bulgaria.

Morocco: A Rising Star

Morocco’s startup scene is experiencing remarkable growth, with a 93% increase in investment reported by 2023. This surge is supported by key funds such as the Digital Morocco Fund and the UM6B Venture Fund, which target sectors like ICT, healthcare, and agriculture. In recent years, Moroccan startups have attracted around $44 million, showcasing a vibrant ecosystem that aims to position itself as a regional tech powerhouse by 2030. The government’s ambitious Digital Morocco 2030 strategy aims to create 1,000 startups by 2026, backed by substantial funding commitments.

Tunisia: Emerging but Challenged

Tunisia’s startup ecosystem is characterized as emerging, with significant potential yet facing notable challenges. Although innovative initiatives like the Startup Act have laid the groundwork for entrepreneurship, funding remains limited. The country has focused on sectors such as FinTech and AgriTech, but recent reports indicate that funding levels are still low compared to its neighbors. The government is working on reforms to enhance access to finance and support growth through various local funds.

Egypt: A Mixed Bag

Egypt’s startup landscape has seen significant fluctuations, with a reported 80% decline in funding during the first half of 2024. Despite this downturn, Egypt remains a key player in the MENA region due to its robust FinTech sector. Notably, it attracted $185 million across several deals in July 2024 alone, driven largely by major transactions like that of MNT-Halan. However, the overall investor sentiment has been impacted by economic instability, leading many startups to seek opportunities abroad.

Bulgaria: Growing Tech Hub

Bulgaria stands out as a growing tech hub in Eastern Europe. With increasing interest from local and international investors, the country has established itself as a favorable environment for startups focused on IT and software development. The presence of funds like Eleven Ventures indicates a healthy investment climate. While still developing compared to Morocco and Egypt, Bulgaria’s startup ecosystem benefits from EU funding initiatives aimed at fostering innovation.

In summary, while Morocco’s ecosystem is on an upward trajectory with ambitious goals and increasing investments, Tunisia’s potential remains largely untapped amid funding challenges. Egypt’s mixed results highlight the volatility of its market despite strong sector performance, whereas Bulgaria continues to cultivate its growing reputation as a tech hub. As these countries navigate their unique landscapes, the future of their startup ecosystems will depend heavily on regulatory reforms, access to finance, and continued investment from both local and international players.

Conclusion:

Over the past decade, Morocco’s startup ecosystem has experienced remarkable growth, attracting approximately $1.2 billion in funding across 400+ deals. The fintech sector has emerged as a frontrunner, accounting for a significant share of investments, with startups like Cash Plus raising $60 million in 2023 alone. Key investors, including Méditerranée Capital Partners and FMO, have played a crucial role in shaping this landscape.

When compared to neighboring countries, Morocco stands out in the MENA region, showing a year-on-year growth rate of 15% in funding. However, challenges such as access to finance and regulatory hurdles persist. Government initiatives like the Digital Morocco Fund aim to address these issues and bolster support for innovation.

Looking ahead, the future appears promising. Projections suggest a 20% increase in the number of startups by 2024, pushing the total beyond 1,500. Emerging sectors like health tech and agritech are expected to attract more investment, driven by local market needs. With anticipated revenue growth of 15% and a rise in foreign investment, Morocco is poised to solidify its position as a leading startup hub in North Africa. As it continues to foster entrepreneurship and innovation, Morocco’s startup ecosystem is set for a transformative journey.