African Startups Raise Record $254mln in October 2024

(Ecofin Agency) - Even though venture capital investments have slowed in Africa, sectors like fintech and renewable energy continue to draw significant funding. However, the ecosystem remains largely male-dominated.

In October 2024, African startups raised a total of $254 million, marking the best October since 2019. A total of 42 companies secured funding despite a global tightening of liquidity. According to data from Africa: The Big Deal, October's performance stands as the second-best month of 2024, following July, and represents a nearly 50% increase compared to the average of the last 12 months. This is in contrast to the global trend, where funding has been more difficult to secure.

Since the start of 2024, African startups have raised $1.7 billion in 393 deals worth over $100,000. However, this is a 32% decline compared to 2023. Among these deals, 137 surpassed $1 million, a 20% year-on-year drop, reflecting the ongoing challenges in financing tech startups.

One standout success this month was Moniepoint, a Nigerian fintech, which raised $110 million in a Series C funding round. This single deal accounted for 43% of the total funds raised in October. This major funding round positions Moniepoint to potentially become Africa's eighth unicorn—a status given to companies valued at over $1 billion. Other notable deals include BasiGo’s $42 million raised in a Series A round and Yellow Card’s $33 million in Series C funding.

The breakdown of investments shows a clear trend: 60% of the funds raised in October went to Nigerian startups, and the fintech sector received a similar 60% of the total. However, there were significant gender disparities. A staggering 98% of the funds went to male-led businesses, and 97% of the companies did not have female founders, even in this "Pink October" month focused on women.

Globally, startup funding showed signs of recovery in October, though it remained lower than previous years. According to Crunchbase, global startup funding reached approximately $25 billion in October, marking a 10% increase compared to September but a 15% decrease from October 2023.

Source: Ecofin Agency