African startups raised a collective $250 million in funding in October 2024, marking a strong month for the continent’s entrepreneurial ecosystem. This was largely driven by Nigerian fintech company Moniepoint, which secured a $110 million Series C funding round, making up 43% of the total amount raised by African startups during the month.
The substantial rise helped make October the second-highest month for funding this year, trailing only July. The total funding for the month was nearly 50% higher than the average monthly funding over the past year, setting a new record for October since 2019.
Moniepoint’s success has sparked discussions about the growing fintech sector in Africa, with some speculating that the company may now be a unicorn, though its valuation remains uncertain.
Other notable funding rounds in October included BasiGo’s $42 million Series A and a $33 million Series C raised by cryptocurrency exchange Yellow Card. Nigeria remained the dominant hub for funding, attracting 60% of the total raised, with fintech securing 60% of the total investments across the continent.
Despite the positive trends, the report highlighted ongoing gender disparities in leadership, with 98% of the funding going to male-led startups and 97% of the funds allocated to ventures without female founders. The only exit for the month was OmniRetail’s acquisition of Traction Apps in Nigeria.
Year-to-Date Funding Performance
Looking at the year-to-date data, African startups have raised a total of $1.7 billion in 2024, representing a 32% decline compared to the same period in 2023. The slowdown in investment activity is evident as the funding amount achieved by this time last year was reached by early June.
While 393 startups secured $100,000 or more in 2024, this represents a 10% decrease from the previous year. Of those, 137 raised $1 million or more, marking a 20% drop year-over-year.
Moniepoint’s Series C was one of the standout deals for Nigerian startups in 2024, alongside a $100 million Series B led by Uber and a $10 million debt deal for its India expansion. However, outside these two, Nigeria has seen fewer large deals this year, with smaller deals trickling in.
In 2023, Nigeria lost its position as the top destination for startup funding in Africa to Kenya, which raised $800 million, the largest amount for any African country. Nigeria, on the other hand, secured $410 million. In the first half of 2024, Kenyan startups attracted $244 million, while Nigerian startups raised approximately $172 million.
As Africa’s startup ecosystem continues to evolve, the shifting funding landscape points to the growing competition between key players like Kenya, Nigeria, Egypt, and South Africa.
