April 9, 2024

African Startup Funding Has Fallen Again – With One Notable Exception

In the first quarter (Q1) of 2024, Africa’s startup scene saw another year-on-year and quarter-on-quarter dip in investments – with a notable exception in the mobility and fintech sectors.

A drop in funding

According to Africa: The Big Deal, Q1 saw $466 million raised through $100k+ deals by 121 startups (excluding exits).

This is a 27% decrease from the previous quarter and only half of the amount raised at the same time last year.

Techpoint Africa’s analysis of data from Intelpoint notes a 62% drop in African tech startup funding compared to last year.

Mobility Sector Shines

Nevertheless, the mobility sector managed to draw significant attention and capital, followed closely by fintech.

In March, Moove clinched a massive $100 million in a Series B round led by Uber – accounting for a quarter of the continent’s total investments for the quarter. 

The investment is expected to enhance Moove’s operations, which already span significant markets, including Nigeria, South Africa, Ghana, the UK, India, and the UAE. 

The mobility fintech is now focused on expanding to 16 markets by 2025 and prioritizing electric vehicles (EVs).

Read:  Women-Led African Healthtech Companies Raised A Historic $52M Last Year

More startups raised $1M+

Like in previous quarters, the landscape favored equity over debt, with 71% of the funding coming from equity.

The funding landscape also displayed no surprises regarding locations, with Nigeria, Egypt, South Africa, and Kenya capturing 87% of total funding.

Promisingly, the continent saw an increase in startups raising over $1 million after six consecutive periods of decline.

The funding scene, however, still shows a bias towards male-founded and led startups, with less than 1% of funds going to companies without at least one male founder and 6.5% to female CEOs.

Samara Linton

Community Manager at POCIT | Co-editor of The Colour of Madness: Mental Health and Race in Technicolour (2022), and co-author of Diane Abbott: The Authorised Biography (2020)