Africa Big Deal: Fintechs Lead As African Startups Raise $138 Million

Fintech Leads In Funding: African startups have announced a total of $138 million in funding across equity, debt, and grants, according to the latest report from Africa: The Big Deal. This report came in September.

Although the funding falls short of the $159 million monthly average recorded over the past year, the number of startups securing significant investments saw a notable increase.

Egyptian Fintech Leads In Funding

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.

Among the top recipients, fintechs lead the funding. Egypt-based fintech FlapKap raised $34 million in pre-Series A funding, combining equity and debt.

Another Egyptian fintech, Paymob, raised $22 million as part of an extended Series B round, reporting profitability in Egypt. Ghana’s Fido, also a fintech, secured $20 million in Series B funding.

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.

Also Read: African Startup Funding Surpasses $1 Billion in 2024, Two Months Later Than Last Year

September Funding Revealed An Increase In Investors’ Interest 

Fintech Leads In Funding: Despite a slight decrease in total funding compared to previous years, September 2024 demonstrated robust investor interest, particularly in the fintech sector.

Additionally, the increasing number of deals underscores the growing dynamism of Africa’s startup ecosystem, with fintech continuing to lead in securing substantial investments.

Recall that the funding dropped significantly in August by about 87 percent. It went down from $443 million recorded in July to $56 million a month after.

Africa: The Big Deal said, “Start-ups in Africa announced only $56 million in funding, down from $443 million in July (8x less) and $234 million in August 2023 (4x less), making August 2024 the second-slowest month in four years in terms of funding raised, after June 2024 ($42 million).”

It disclosed that most of the funding was raised as equity (87 percent), and the rest was debt (nine percent) and grants (four percent). The data showed that Nigeria accounted for 14 percent of the $56 million raised in August 2024.

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