Funding for startups in Africa declined by 32 percent from January to November 2024 compared to the corresponding period in 2023, according to Africa: The Big Deal.
The data insight firm that tracks funding of $100,000 and above disclosed that startups in the continent raised $1.9 billion between January and November 2024, compared to the $2.8 billion raised in the same period of 2023.
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In the same period in 2022, African startups raised $4.3 billion, the highest amount since 2021. In 2021, startups raised $3.9 billion in the eleven months being reported.
“In November 2024, 32 startups in Africa announced a total of $180m in funding, a combination of equity, debt, and grants. The funding distribution included $122 million in debt (68 percent), $55.5 million in equity (31 percent), and $2.5 million in grants (1 percent),” the firm said.
According to The Big Deal, Sun King’s debt funding of $80m from the IFC was the largest announcement, making 44 percent of the total.
It also revealed that there were three other eight-digit deals in November, including Kenya-based ISP Mawingu, which raised $15 million in debt and equity to finance its expansion into East Africa, and Ivorian fintech Djamo, which raised a $13 million Series B.
The data insight firm noted that 76 percent of all the funding went to Kenya and Nigeria. So far, African start-ups raise (except exits) have been spread between equity of $1.2 billion (64 percent), debt of $635 million (34 percent), and grants of $33 million (2 percent).
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In Q3 2024, African startups raised over $600 million, more than double the amount secured in Q2. This made it the best quarter of 2024 so far and comparable to Q3 2023. Two major deals largely drove this: d.light’s $176 million securitisation multi-currency facility and MNT-Halan’s $157.5 million funding round.
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