In this edition of Industry Voices, we're diving into the evolving startup ecosystem in Tunisia through the lens of Manar Labidi, CFO at Cynoia. From her early days as a student operator to leading finance and strategy at one of Tunisia’s rising SaaS startups, Manar shares what it means to build in a market full of ambition, yet facing structural challenges. We explore the country’s progress post-Startup Act, the hurdles of scaling beyond seed, and why founders are increasingly looking abroad to unlock growth.

An Experienced Operator in Tunisia

Manar Labidi’s journey into the world of startups began during her studies at TBS (Tunis Business School), where she specialized in finance and business analytics. While studying, she started working with startups to gain hands-on experience in the Tunisian entrepreneurial ecosystem.

Her first foray into the startup world began with SgharToon, a tele-therapy platform for kids across the MENA region. She also worked with Fabskill, an HR tech platform where she conducted research on investment readiness for African tech startups. These experiences offered her a firsthand look at the challenges and rewards of being both an operator and an early-stage employee. She thrived in the dynamic environment and found herself drawn to the excitement of building something from the ground up.

 After graduating, Manar decided to continue working with startups and joined Cynoia. At the time, Cynoia didn’t have a dedicated employee for the finance function, so Manar stepped into the role, starting as a finance officer. Her responsibilities included financial planning & analysis, preparing for investment rounds, and talking to investors.

Today, as the company's CFO, Manar's role extends far beyond finance. She plays a key part in decision-making, strategic management, and even representing the company on the global stage, pitching at major international conferences.

An All-in-One Platform for African Businesses

Cynoia is an all-in-one communication and collaboration platform designed specifically for African businesses. The platform aims to simplify work processes by replacing multiple applications like Zoom, Google Drive, and Slack with a single, intuitive tool. Cynoia offers features such as chat, video conferencing, project management, shared calendars, note-taking, and cloud storage.

Cynoia provides its software to any organization seeking to streamline collaboration, serving a diverse range of clients, including SMEs, telecom companies, universities, and even venture capital firms. They currently operate offices in Tunisia and France and, as part of its expansion into West Africa, launched its legal entity and offices in Senegal in late 2024 to scale its customer base.

On the fundraising side, Cynoia has raised €850,000 in its seed round, followed by a bridge round. The company is now preparing for its Series A, targeting a raise of around €5 million, though the final amount is still being evaluated. “Series A is a big deal,” Manar emphasizes. “We need to be absolutely ready before jumping in.”

The Tunisian Startup Ecosystem: A Work in Progress

Manar’s insights into the Tunisian startup ecosystem are both inspiring and sobering. She views Tunisia’s 2018 Startup Act as a pivotal moment for the country’s entrepreneurial landscape. By providing a legal framework that made it easier for startups to operate, the act sparked a wave of innovation and new ventures, particularly among the younger generation.

Today, Manar observes a growing shift. She noticed that more students are exposed to entrepreneurship through university courses, and many are opting to launch their own businesses rather than pursue traditional career paths.

However, the ecosystem is still in its early stages, and challenges remain. While there is plenty of support for early-stage startups (incubators, accelerators, early-stage VCs), the ecosystem struggles to provide the same level of support for companies looking to scale. Series A and follow-on funding remain scarce in Tunisia, and there are few success stories at that stage for startups to draw inspiration from. "As a founder, you don't have many models to follow, so you often have to learn through trial and error rather than by example," Manar explains. This lack of guidance and funding contributes to a significant drop in the survival rate of startups beyond the seed stage.

The “Death Valley”

Another key challenge is the economic conditions in Tunisia. The country’s financial restrictions, including foreign exchange limitations and high tax rates, make it difficult for startups to operate and expand. According to Manar, new financial laws adopted in 2025 have introduced additional tax burdens, further complicating matters for businesses.

Additionally, talent retention is becoming increasingly difficult due to competitive global salaries luring skilled workers abroad. Startups are struggling to offer competitive pay while remaining financially sustainable. Some stakeholders and ecosystem players have even referred to Tunisia as the "Death Valley," a term that highlights the challenging conditions that make it difficult for the country’s entrepreneurs to thrive and succeed.

Despite these challenges, Manar remains optimistic. She believes that the Tunisian market has significant potential, and many founders are finding creative ways to navigate the obstacles. One key strategy is international expansion, which enables startups to bypass local financial constraints and tap into larger markets, effectively moving beyond the "Death Valley."

Expanding Beyond Tunisia

When it comes to scaling beyond Tunisia, many startups look to France as their first international market. Manar explains that this tendency is driven by several factors:

• Proximity: France is geographically close and has strong historical ties with Tunisia.

• Large Tunisian diaspora: France is home to a large North African community, which facilitates the expansion of Tunisian startups. Many Tunisian founders have established networks in France, making it easier to set up businesses and navigate the legal complexities of entering a new market.

• Startup-friendly environment: French banks offer more competitive debt financing options compared to Tunisia and there is a larger entrepreneurial ecosystem.

However, expansion is not without its challenges. Manar emphasizes the importance of understanding the local market and building strong networks. In Africa, for example, Cynoia had to navigate cultural barriers and adapt its approach to suit different regions. The company’s experience in Senegal demonstrated the importance of being physically present to establish trust and credibility.

The Importance of Community and Partnerships

One of the strengths of the Tunisian ecosystem is its sense of community. Founders and startups are closely connected, and there is a strong culture of collaboration and mutual support. Manar highlights the role of hubs like The Dot, where startups, accelerators, and other ecosystem players come together to share resources, collaborate, and learn from each other. This interconnected environment facilitates the exchange of opportunities, information, perks, sales, and talent.

Tunisian Success Stories

Although success stories in Tunisia are still relatively few, Manar emphasizes the invaluable role exited founders play in the ecosystem. She points out that one successful exit can have a ripple effect, benefiting the entire entrepreneurial community. Exited founders often return to the ecosystem to invest, advise, and mentor new startups. She cites the founders of InstaDeep and Expensya as prime examples. Their exits have not only created financial wealth but have also reinvigorated the ecosystem by providing much-needed capital and expertise to the next generation of founders. This creates a virtuous cycle, where success breeds further success, helping to build a sustainable and thriving entrepreneurial environment in Tunisia.

Advice for Tunisian Founders: Be Adaptive and Network

Manar’s advice for Tunisian founders looking to scale their businesses is simple: be adaptive and build a strong network. She stresses the importance of being flexible and open to new ways of doing things. Founders should be willing to learn from others and seek out opportunities to collaborate and share knowledge.

Networking is also crucial. Manar believes that building relationships with other founders, investors, and ecosystem players can open doors and create opportunities for growth. She encourages young founders to focus on building their network and being accessible to others in the ecosystem.

Looking Ahead

As Cynoia prepares for its Series A funding round, Manar is focused on ensuring that the company is ready to take the next step. The team is working hard to meet its target metrics and prove its value to potential investors.

The Tunisian ecosystem is still grappling with challenges, but it is evolving steadily. More startups are emerging, and the entrepreneurial culture is gaining momentum. With the right support, a stronger focus on collaboration, and improvements in regulations, the ecosystem has the potential to foster more success stories.