African startups raise over $390m in May 2023

By Alexander Chiejina

Apart from an undisclosed amount in May 2023, the funding journey for African businesses has significantly improved from March and April, raising nearly $390 million, Business A.M. investigation shows.

Twelve of the 27 firms that received funding announced unpublished numbers. West Africa recorded six startups, while North, South, and East Africa each created seven. In May’s fundraising campaign, nobody from Central Africa participated.

Compared to April’s Victory Farm, which collected $35 million as the highest announced investment, Kenyan asset financing firm, M-Kopa raised $250 million. With more fintech leading in terms of numbers, Nigeria, Kenya, and South Africa continued to top their respective areas.

Morocco replaced Egypt in February and March, while Tunisia emerged in April. However, Egypt has reclaimed its position as it just edged Morocco in May’s fundraising campaign for North Africa. An overview of fundraising in Africa by region can be found below.

North Africa

The remaining three of the seven startups in this area are Moroccan, with four of them being Egyptian. Balad (undisclosed), Helpoo (undisclosed), Dawi Clinic ($8 million), and Axis ($8.2 million) are startups from Egypt. Chari (Undisclosed), DataPathology ($1 million), and Prestafreedom ($1 million) are three Moroccan businesses. This area received $18.2 million in financing. Come June, which country in North Africa will have attracted the most foreign investment — Morocco or Tunisia?

South Africa

Tyme, a startup in digital banking, received 98 percent of the $78.8 million raised by startups in this area. Five of the seven startups — Kula, Play Sense, Digsconnect, Quromedical, and Port443 — announced undisclosed sums. Viatu, a business offering wildlife vacation in Namibia, raised $1 million. Six of the seven startups are from South Africa.

East Africa

Seven businesses in East Africa raised $254.1 million in funding, with Kenya’s M-Kopa earning the greatest percentage (98%) as previously noted. Undisclosed funding was announced by Zydii and Elevate Hr. Novfeed ($1 million), Amini ($2 million), Raise ($120,000), and Zofi Cash ($1 million) make up the remaining sum.

West Africa

Six firms founded in this area raised $40.2 million. Undisclosed amount was announced by Ghana’s Kofa and Nigeria’s Zeeh Africa. Figorr made $1.5 million. Fintech startup Nkwa from Cameroon raised $15,000, b2b e-commerce Sabi raised $38 million, and Kunda Kids closed $700,000.