In September 2024, African startups raised a total of $138 million through a mix of equity, debt, and grants. The latest report from Africa: The Big Deal highlights a surge in investment activity, with fintech startups securing the majority of the funding.
A Slight Dip in Total Funding, But More Startups Securing Deals
Although the $138 million raised is slightly below the monthly average of $159 million recorded over the past year, the number of startups securing significant investments grew substantially. A total of 61 startups raised over $100,000 in September 2024, a sharp increase from the 12-month average of 42 startups.
Key Markets: The Big Four Dominating
These 61 ventures spanned twelve African countries, but 90% of the total funding went to the “Big Four” markets—Egypt, South Africa, Nigeria, and Kenya—along with Ghana. The other countries represented in the report include Morocco, Algeria, Tunisia, Côte d’Ivoire, Tanzania, Uganda, and Rwanda.
Top Fundraisers: Major Deals Over $20 Million
Several startups made headlines with major fundraising rounds exceeding $20 million:
- FlapKap: An Egypt-born and Abu Dhabi-based fintech, FlapKap secured the largest deal of the month with $34 million in pre-Series A funding, combining debt and equity.
- Paymob: Another Egyptian fintech, Paymob, raised $22 million as an extension to its Series B round, and the company is now profitable in its home market.
- Fido: In Ghana, fintech company Fido raised $20 million in Series B equity funding, following a $10 million debt deal announced in August.
Notable Exits: South Africa and Nigeria Lead
September also saw significant acquisitions:
- Syft: South African AI financial reporting platform Syft was acquired by global accounting software giant Xero for $70 million, marking the largest exit of the month.
- Risevest: Nigerian fintech Risevest expanded into the Kenyan market by acquiring Kenya’s Hisa, further strengthening its foothold in the region.
Fintech’s Continued Dominance Despite Funding Shifts
Despite a slight dip in total funding compared to the previous year, investor interest remained strong, particularly in the fintech sector. The increasing number of deals reflects the dynamism of Africa’s startup ecosystem, with fintech startups continuing to lead in attracting large-scale investments.
Nigeria’s Declining Share in Startup Funding
While funding for African startups has improved, Nigerian startups are experiencing a slowdown in large deals. Despite securing smaller deals, no major deals have emerged for Nigerian startups in 2024, apart from Moove’s $100 million Series B round and a $10 million debt deal for its India expansion.
Once Africa’s top destination for startup funding, Nigeria lost its leading position to Kenya in 2023. Kenyan startups attracted around $800 million, while Nigerian startups secured $410 million. In the first half of 2024, African startups raised $780 million, with Kenya leading with $244 million, followed by Nigeria with $172 million, Egypt with $101 million, and South Africa with $85 million.
Conclusion: The African Startup Ecosystem Remains Resilient
Despite regional funding disparities, Africa’s startup ecosystem continues to attract significant investments, particularly in the fintech sector. September 2024 showcased the resilience and dynamism of African ventures, with more startups raising funds and pushing the continent’s innovation landscape forward.
Source: NairaMetrics