31 African Startups secure $100m funding from VCs in January 2023

By Alexander Chiejina

Thirty-one African startups secured $100 million funding from venture capitalists (VCs) in January 2023, Business A.M. investigation reveals. Unlike January 2022 which saw over $400 million raised by 44 startups, January’s 2023 fundraising saw five startups secure funds from the North African region, four startups from the South African region, while the West and East regions of the continent shared 13 and nine respectively.

Business A.M. discovered that out of the 31 startups, five announced undisclosed funding with South Africa’s gaming startup, Carry1st, securing $27 million, the biggest financing disclosed for African startups in January 2023. Also, Kenya, South Africa, Nigeria and Egypt continue to dominate their respective regions with agtech startups taking over the scene for the month of January.

Below is a look at the fundraising by regions in Africa

West Africa

13 startups in the West African region secured up to $22.1 million, excluding undisclosed funding rounds from Nigeria’s Boundless Pay, while Ghanaian Logistics startup, Jetsream, secured the highest in the region at $13 million.

Waza ($1.2m), ShekelMobility ($1.95m), Husk Power ($750k), Pakam ($635k), Trade Lenda ($520k), Releaf ($3.3m). Catalyst Fund invested $800k in Nigeria’s Eight Medical, Farmz2U and Paddy Cover as well as Senegalese Assuraf.

Twelve out of the 13 are Nigerian and this confirms another dominating fundraising journey for Nigeria in the West African region with more agtech than any other verticals have raised funding in the region.

East Africa

Nine East African startups raised $45.1 million in funding. Ethiopia’s Samanu raised $21 million, followed closely by solar startup, Welight. from Madagascar with $20.5 millar. Kenyan fintech, Kwara received $3 million while Zuri Health, Gebeya and Teraki announced undisclosed funding. Catalyst Fund invested $600k in Kenya’s Farm2feed, Octavia Carbon, and Uganda’s Agro Supply.

Kenya slightly edges Ethiopia by the number of startups.

North Africa

A total of $4.3 million was raised in this region by five startups. Egypt’s clean tech, Karmsolar secured $3 million and Cathedis, a Moroccan-based logistics startup, received $735k. Catalyst Fund invested $600k in Egypt’s Bekia and VAIS as well as Morocco’s Sandtogreen.

Three of these five Northern startups are Egyptian. This may be an early indicator that Egypt is ready for another roller coaster year of investment rounds in North Africa as it did in 2022.

South Africa

Startups from the Southern African region secured a total of $36 million, with South Africa’s Carry1st taking a large chunk of the region’s investment for January as the gaming startup raised $27 million. Proptech startup Flow and E-commerce platform both raised $4.5 million each, while Nambu an agtech startup announced undisclosed funding.

All 4 startups are South African, and this is yet another indication of South Africa’s dominance in that region for 2023.