Fintechs lead as African startups raise $138 million in September 2024—Report  

African startups announced a total of $138 million in September 2024, encompassing equity, debt, and grants.

This is according to the latest report by Africa: The Big Deal, which indicates that fintech startups got the larger chunk of the funding.

While this figure is slightly below the monthly average of $159 million recorded over the past year, the number of startups securing significant investments was notably higher.

A total of 61 startups successfully raised $100k+ in funding during the month, a significant jump from the 12-month average of 42 startups.

These ventures spanned twelve countries, with 90% of the total funds going to the Big Four: 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.

The top fundraisers

Among the top fundraisers, three startups stood out with major investments exceeding $20 million. Egypt-born and Abu Dhabi-based fintech, FlapKap, secured the largest deal of $34 million in pre-Series A funding, a combination of debt and equity.

• Another Egyptian fintech, Paymob, raised $22 million as an extension to its Series B round, with the company now reporting profitability in its home market.

• In Ghana, fintech company Fido raised $20 million in Series B equity funding, following the $10 million debt it announced in August.

• In terms of exits, two notable acquisitions were announced. 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.

• Nigerian fintech Risevest also made headlines by acquiring Kenya’s Hisa, as part of its strategy to expand into the Kenyan market.

What you should know

Despite the slight dip in total funding compared to the previous year, September 2024 showed strong investor interest, especially in the fintech sector.

The increasing number of deals highlights the growing dynamism of Africa’s startup ecosystem, with fintech continuing to lead the way in securing large-scale investments.

Meanwhile, despite the improved funding for the continent’s startups, things are not looking good for Nigerian companies as there has been a scarcity of big deals, while the small deals come in trickles.

• Aside from Moove’s $100 million Series B round led by Uber, and a $10 million debt deal to finance its India expansion, no Nigerian startup has landed any major deal this year.

• Nigeria, which was for years the leading destination for startups funding in Africa lost its top position to Kenya in 2023, with Kenyan startups attracting approximately $800 million, the largest amount in the continent, while Nigerian startups secured $410 million.
• In the first half of 2024, African startups secured $780 million in funding. Out of that $780 million Kenyan startups garnered the largest amount, $244 million, representing 32% of the total funding raised, while Nigeria received approximately $172 million. Egypt took a share of $101 million, and South Africa secured $85 million.