East African startups have raised US$2.3 bln since 2019

  • Posted on: 27 June 2022
  • Updated on: 27 June 2022
  • By: radmin

East Africa accounts for 23% of the funds raised by African startups since 2019. Kenyan startups attracted most of those funds or some US$1.9 billion in two years and a half. 

East African startups raised US$2.3 billion between 2019 and May 2022. The amount represents 23% of the overall funds raised by African startups during the period.  

Most of the US$2.3 billion (84%) was raised by Kenyan startups. Indeed, during the period, Kenyan startups raised US$1.9 billion.  "Of the 10 $50m+ deals recorded in Eastern Africa since 2019, 9 were in Kenya," the Big Deal indicated in an analysis posted today, June 14. 

Tanzania and Uganda were the other two East African markets to attract more than US$100 million in total funding during the period. "Combined, the three countries leave very little room to their neighbors, with 96% of all the funding raised in the region since 2019," the platform added.  

During the period, Tanzanian startups raised over US$152 million against about US$125 million for Ugandans. Ethiopia, Rwanda, and Sudan were the underdogs with respectively US$46 million, $23 million, and $6 million raised.

In the past 2.5 years, East Africa has captured nearly ¼ of all the funds raised on the continent. In 2019, they raised US$255 million, $646 million in 2020, $571 million in 2021, and $845 million from January to May 31, 2022. 

Unsurprisingly, Kenya remains the powerhouse in that region. Its startups raised over US$780 million between January and May 2022, representing a 436% year-on-year increase.  

Source: Ecofin Agency