July funding frenzy pushes African start-ups past $1.2bn in 2024

Business a.m.

African start-ups recorded a remarkable fundraising performance in July 2024, raising $420 million, the highest monthly figure in over a year, according to Africa: The Big Deal. This milestone marks the ecosystem’s cumulative fundraising of over $1.2 billion since the beginning of the year, further cementing Africa’s position as a key player in the global start-up sector.

Although the African start-up ecosystem celebrated a momentous achievement by hitting a record high of $420 million in fundraising for the month of July 2024, it came at a time of economic uncertainty. This record monthly funding amount, which exceeded the total raised during the entire second quarter, represents a 2.5 times increase over the average monthly funding in the previous 12 months. 

Despite reaching the $1 billion funding milestone in July, this milestone was not enough to offset the overall slowing pace of funding, a trend that has been observed in recent years.

The headwinds notwithstanding, 47 ventures managed to secure funding of at least $100,000 in July 2024, making it the second-best month of the year in terms of the number of successful funding rounds. Only May 2024 saw more funding announcements with a total of 40 grants being secured by start-ups across the continent. 

Market data further showed that out of the 47 ventures that raised funds in July, 16 secured funding of at least $1 million each, in line with the average monthly number of successful funding rounds of $1 million or more during the first half of 2024.

Notably, the record high of $420 million in funding for African start-ups in July 2024 was largely boosted by two mega deals. First, d.light, a solar energy company, secured a substantial $176 million securitisation facility, which will support their operations and expansion. Moreso, MNT-Halan, a microfinance lending and payment company, raised $157.5 million in funding, which will be used to fuel their growth and market penetration. The $40 million Series A round for NALA, a fintech start-up, also stood out among the other deals sealed during the month of July 2024.

According to market analysis, the record-breaking $420 million in funding secured by African start-ups in July 2024 not only enabled the ecosystem to comfortably surpass the $1 billion mark in overall funds raised during 2024, but also surpassed the amount raised in 2020. With this positive momentum, the African start-up ecosystem appears poised to potentially surpass the $1.4 billion mark in funding raised in 2019.