African startups in September announced a total of $138 million in funding, which included 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 the $138 million raised in September 2024 is slightly below the monthly average of $159 million from the past year, the number of startups receiving substantial investments increased significantly. This trend suggests a growing diversification and vibrancy within the African startup ecosystem.
In September 2024, a total of 61 startups raised over $100,000 in funding, marking a significant increase from the 12-month average of 42 startups.
These ventures came from twelve countries, with 90% of the funding concentrated in the Big Four: Egypt, South Africa, Nigeria, and Kenya, along with Ghana. Other represented countries included Morocco, Algeria, Tunisia, Côte d’Ivoire, Tanzania, Uganda, and Rwanda.
Among the top fundraisers in September 2024, three startups stood out with investments exceeding $20 million.
Notably, FlapKap, a fintech company founded in Egypt and based in Abu Dhabi, secured the largest deal of $34 million in pre-Series A funding, which included both debt and equity.
Another Egyptian fintech, Paymob, raised $22 million as an extension of its Series B round, and it is now reporting profitability in its home market.
Meanwhile, in Ghana, fintech company Fido secured $20 million in Series B equity funding, building on the $10 million in debt it announced in August.
Two significant acquisitions were announced in the African startup landscape.
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.
Additionally, Nigerian fintech Risevest acquired Kenya’s Hisa, which is part of its strategy to expand into the Kenyan market.
Despite a slight dip in total funding compared to the previous year, September 2024 demonstrated strong investor interest, particularly in the fintech sector.
The increasing number of deals indicates a growing dynamism in Africa’s startup ecosystem, with fintech remaining at the forefront of securing significant investments.
