In February 2024, startups across Africa achieved a significant milestone by raising a total of $217 million, marking a remarkable 182% increase compared to the previous month, as reported by ‘Africa: The Big Deal,’ a platform monitoring startup deals on the continent.
The firm had reported that African startups secured $77 million in January.
The February report included Uber’s reported $100 million investment in Nigeria’s mobility fintech, Moove, pending conclusion.
The report clarified that direct confirmation with one of the investors verified the occurrence of the $100 million Series B investment in Moove.
According to the findings, 38 startups successfully raised at least $100,000 last month through equity, debt, or grants, mirroring the same number as in January.
However, the cumulative announced amount surged nearly threefold to $217 million, comprising $156 million in equity and $59 million in debt.
Highlighting the capital raise activities, the report noted, “January was a pretty quiet month with only $77 million worth of deals announced on the continent. The good news is that things have picked up in February.” The report further highlighted that Moove significantly contributed, accounting for 51% of the total funding.
The report disclosed three exits in February, including Carbon’s acquisition of Vella Finance, Auto24’s acquisition of Kupatana, and the potential acquisition of Umba by FairMoney.
Overall, the funding levels in February 2024 were comparable to those in 2020 and 2021.
Year-to-date figures indicated that African startups have raised just under $300 million, with 80 startups securing at least $100,000, and 38 of them achieving at least $1 million.
The ‘Big Four’ countries claimed 86% of total funding, with Nigeria leading at 42% ($123 million, including $110 million from Moove alone), followed by Kenya at 27% ($81 million), and Egypt and South Africa trailing with 10% ($28 million) and 7% ($22 million), respectively. Beyond these, Uganda emerged as the only other country with funding exceeding $10 million so far in 2024.
Examining sectors, Logistics & Transport took the lead, representing nearly half of all funding, driven by Moove. Healthcare, Fintech, and Energy followed in the funding distribution. In terms of the number of startups, Fintech claimed the top spot with 18 out of 80, constituting 23% of the total.
