Joy Agwunobi
A recent report by Africa: The Big Deal, a firm that tracks the African startup ecosystem, reveals that startups across the continent raised a total of $254 million in October 2024.
This strong fundraising performance brings a boost in what has been a challenging year for African startups, especially in the fintech sector.
The figure, according to the report, makes October the second-highest month for funding this year, trailing behind July. Additionally, October 2024 has become the most lucrative October for African startups since 2019.
The $254 million raised represents an 84 per cent increase from the $138 million secured in September, indicating a robust growth trajectory in the continent’s startup ecosystem.
October’s funding also marked a 353.5 per cent rise from the $56 million raised in August. However, this figure remains 42.6 percent lower than July’s record-breaking $443 million, underscoring July’s continued dominance in 2024. Nonetheless, the report noted that October’s fundraising total still outpaced the 12-month average by nearly 50 percent.
The report highlights that the substantial October funding was driven by 42 African startups, each raising at least $100,000. These investments spanned equity deals, debt, and grants, excluding any exits.
By October’s close, African startups had raised a total $1.7 billion in 2024. Although this figure is impressive, it reflects a 32 percent year-over-year decline compared to 2023, a year when similar figures had already been achieved by early June.
According to the report, leading the fundraising for October was Nigerian fintech company Moniepoint, which secured $110 million in a Series C round. This investment not only elevated Moniepoint to unicorn status with a valuation exceeding $1 billion but also contributed 43 per cent of the total funding raised on the continent in October.
The round was led by Development Partners International’s ADP III fund and saw participation from new backers, including Google and Verod Capital, alongside existing investors like QED Investors and Novastar Ventures.
Besides Moniepoint, the report also recorded two other notable funding rounds in October included BasiGo, a Kenyan e-mobility startup, and Yellow Card, a cryptocurrency exchange and payment platform.
According to the report, BasiGo raised $42.5 million in a Series A round led by Africa50, with backing from Novastar Ventures, CFAO Kenya, Mobility54, the U.S. Development Finance Corporation (DFC), and British International Investment (BII). While Yellow Card secured $33 million in a Series C round led by Blockchain Capital and supported by Polychain Capital, Third Prime Ventures, and Winklevoss Capital, among others.
The report noted that 393 African startups had raised $100,000 or more by October 2024, a 10 percent decline compared to the previous year. Of these, 137 startups raised at least $1 million, marking a 20 per cent drop from 2023. October’s funding distribution showed that 60 percent of the investments went to Nigerian startups, with fintech companies capturing 60 per cent of the total.
Additionally, 98 per cent of October’s investments were directed at startups led by male CEOs, with 97 per cent going to ventures lacking female founders. The month also recorded an exit, with Nigeria’s OmniRetail acquiring Traction Apps.
