In October 2024, African startups attracted a total of $254 million in funding, driven by a record-breaking Series C round from Nigerian fintech Moniepoint.
Moniepoint’s $110 million funding alone represented 43% of the month’s investment activity, reiterating the strength of Nigeria’s tech sector and the increasing interest in African fintech ventures.
This funding achievement, revealed by Africa: The Big Deal’s latest report, places October as the second-highest month for startup funding on the continent this year, surpassed only by July.
Throughout October, 42 startups across Africa secured funding in amounts exceeding $100,000 through equity, debt, and grant deals, setting a record for the month since 2019.
This achievement was nearly 50% above the average monthly funding of the past year. Contributing transactions included Kenya’s BasiGo, a leading electric vehicle company, which raised $42 million in its Series A round, and the cryptocurrency platform Yellow Card, which secured $33 million through a Series C deal.
Nigeria led the funding sector in October, capturing 60% of the total amount raised. Fintech led the sector, accounting for 60% of the month’s investments.
However, gender diversity remained a challenge, as 98% of the funds went to male-led startups, and 97% of funded ventures had no female founders. Meanwhile, a rare exit was reported with OmniRetail’s acquisition of Nigeria-based Traction Apps.
Year-to-Date Funding Down 32% from 2023
The year-to-date funding for African startups reached $1.7 billion, a 32% decline compared to the same period in 2023. By early June last year, startups had already reached this achievement, noting a slowdown in funding activities this year.
Again, the number of startups raising $100,000 or more fell by 10% year-over-year, and those securing $1 million or more in funding dropped by 20%.
This decline shows the trends in the African tech sector. Nigeria, historically a major destination for startup investment, saw reduced funding activity.
Although Moniepoint’s Series C round was a significant boost for Nigerian startups, larger funding rounds have been relatively scarce.
Kenya, which overtook Nigeria as the top destination for startup funding in 2023, continued to attract investment. Kenyan startups raised approximately $800 million last year, double Nigeria’s $410 million.
In the first half of 2024, Kenyan ventures led the funding totals, securing $244 million, or 32% of the continent’s total, compared to Nigeria’s $172 million.
Economic challenges and changing investor interest are issues to deal with, but the October funding results reveal ongoing resilience in Africa’s tech sector.
With the year entering its final months, November is anticipated to bring new rounds and potential changes in the regional funding sector.
