Funding Soars to $217 Million: A 182% Increase from January
In February 2024, African startups witnessed a substantial surge in funding, reaching a total of $217 million, marking a significant 182% increase compared to January.
Uber’s Reported Investment in Moove Boosts Figures
Reports by ‘Africa: The Big Deal’ highlighted that January’s $77 million funding landscape paled in comparison to February’s robust activity. Notably, Uber’s reported $100 million investment in Nigeria’s mobility fintech, Moove, contributed to the impressive total. The confirmation of Moove’s $100 million Series B investment further solidified the month’s funding report.
38 Startups Raise Substantial Capital
During February, 38 startups secured at least $100k in equity, debt, or grants, mirroring January’s numbers. However, the total amount announced skyrocketed to $217 million, with $156 million in equity and $59 million in debt.
Africa’s Startup Ecosystem Flourishes
The surge in capital raise activities since the year’s onset indicates Africa’s thriving startup ecosystem. Despite January’s relatively subdued funding landscape, February showcased a remarkable uptick in activity, with startups across various sectors securing substantial investments.
Nigeria and Kenya Lead Funding Race
Year-to-date, African startups have amassed nearly $300 million in funding. Nigeria and Kenya emerged as frontrunners, claiming 42% and 27% of the total funding, respectively. Other countries like Egypt, South Africa, and Uganda also witnessed notable funding activities.
Diverse Sectors Benefit from Investments
Logistics & Transport emerged as the top-funded sector, largely attributed to Moove’s significant contribution. Healthcare, Fintech, and Energy followed closely behind. Fintech, in particular, led in terms of the number of startups raising funds, with 18 out of 80, representing 23%.
Amidst this funding surge, Africa’s startup landscape is poised for continued growth and innovation, driven by substantial investments and promising developments across various sectors.
Source: Nairametrics