In September 2024, African startups announced a total of $138 million in funding across equity, debt, and grants, according to the latest report from Africa: The Big Deal. Although this amount falls short of the $159 million monthly average recorded over the past year, the number of startups securing significant investments saw a notable increase.
Sixty-one startups raised over $100,000 in September, a significant rise from the 12-month average of 42 startups. The funding spanned twelve countries, with 90% of the total directed toward the “Big Four” markets: Egypt, South Africa, Nigeria, and Kenya, along with Ghana. Other countries featured in the report include Morocco, Algeria, Tunisia, Côte d’Ivoire, Tanzania, Uganda, and Rwanda.
Leading the fundraising efforts were three notable startups that each raised over $20 million. FlapKap, a fintech based in Egypt and Abu Dhabi, secured the largest deal with $34 million in pre-Series A funding, combining debt and equity. Another Egyptian fintech, Paymob, raised $22 million as an extension to its Series B round and reported profitability in its domestic market. In Ghana, fintech company Fido raised $20 million in Series B equity funding, following a $10 million debt announcement in August.
The month also saw two significant acquisitions. 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. Additionally, Nigerian fintech Risevest acquired Kenya’s Hisa as part of its strategy to expand into the Kenyan market.
Despite a slight decrease in total funding compared to previous years, September 2024 demonstrated robust investor interest, particularly in the fintech sector. The increasing number of deals underscores the growing dynamism of Africa’s startup ecosystem, with fintech continuing to lead in securing substantial investments.
However, the outlook for Nigerian startups appears bleak, with a scarcity of large deals and a slow trickle of smaller ones. Apart from Moove’s $100 million Series B round led by Uber and a $10 million debt deal for its expansion in India, no other Nigerian startup has landed a major deal this year. Nigeria, once the top destination for startup funding in Africa, lost its leading position to Kenya in 2023, when Kenyan startups attracted approximately $800 million, compared to Nigeria’s $410 million.
In the first half of 2024, African startups secured $780 million in funding, with Kenyan startups raising the largest share at $244 million, or 32% of the total. Nigeria followed with approximately $172 million, while Egypt secured $101 million and South Africa garnered $85 million.
