By 
In February 2024, African startups rebounded from a sluggish January, experiencing a significant surge in funding, with Nigeria emerging as the frontrunner in fundraising efforts.
According to The Big Deal’s report, total startup funding in February skyrocketed to nearly $217 million, marking an impressive threefold increase compared to the previous month’s $77 million.
Although this rebound was substantial, the report noted that funding levels still fell short of figures observed during the same period over the past four years. In February, 38 startups secured at least $100,000 in equity, debt, or grants, mirroring January’s numbers.
However, the total announced amount was nearly three times higher, reaching $217 million ($156 million in equity and $59 million in debt). The report attributed a significant portion of this funding to Nigerian fintech and transportation company Moove, which accounted for 51 percent of the total funding.
Initially disclosing a $10 million debt for expansion into India, Moove later garnered attention for ongoing discussions with Uber regarding a potential investment of up to $100 million.
The report emphasized, “January was notably quiet with only $77 million worth of deals announced on the continent. Fortunately, February brought a significant uptick, with 38 startups securing at least $100,000 in equity, debt, or grants, mirroring January’s numbers.
The standout contributor, accounting for 51 percent of the total, was Nigerian transport tech Moove. Initially, Moove announced $10 million in debt for its expansion into India, but rumors of an impending new funding round surfaced shortly after.
Confirmation from one of the investors solidified the news of Moove’s $100 million Series B funding round. Additionally, three exits were announced last month: Carbon acquired Vella Finance, Auto24 purchased Kupatana, and FairMoney showed interest in acquiring Umba. Overall, funding levels in February 2024 were on par with those observed in 2020 and 2021.”
Examining the year-to-date outlook for startup funding in 2024, the report revealed that African startups had raised nearly $300 million. Among them, 80 startups secured at least $100,000, with 38 of those raising at least $1 million.
The continent’s Big Four (Nigeria, Kenya, Egypt, and South Africa) claimed 86 percent of all funding, according to The Big Deal’s report.
Nigeria led the pack with 42 percent, with Moove alone securing $233 million; Kenya followed with 27 percent, raising $81 million, Egypt secured 10 percent with $28 million, and South Africa garnered seven percent with $22 million.
Comments