• Thursday, June 20, 2024
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Kenya still top destination for startup investors — Report

Kenya still top destination for startup investors — Report

Kenya continues to attract more funding from investors among the Big Four, as 19 Kenyan startups raised over $37 million in February 2024.

Briter Bridges, an African research firm, disclosed this recently. In a chart, the firm revealed that Kenya led the way in February deals, followed by Nigeria, South Africa, and Egypt, which recorded 13, 3, and 3 deals, respectively.

“As usual, the ratio of undisclosed, announced deals remains high – roughly one every three, and several transactions being announced in the year before happened in the first quarter. In addition, given the current funding environment, many deals involve down and bridge rounds…,” it said.

A further breakdown of the report reveals that funding across Africa dropped by 74 percent to $73 million in February. The firm noted that February saw a decline in deal activities compared to the same period in 2023, with only 40+ companies raising funds.

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“In light of the tepid funding environment highlighted, this raises important questions about the challenges and opportunities African startups are facing,” it highlighted.

According to Briter Bridges, 42 startups raised $85.6 million in January. This was smaller than what has been raised in recent years in the first month of the year.

Commenting on recent funding patterns in the year, the data insight firm said, “The mobility sector is the top-funded in terms of funding volume with Roam accounting for a $24 million debt funding and other companies like Moove and BuuPass.

“While the Agtech sector led with seven deals counts of which four were undisclosed grants from the GSMA Innovation Fund for Climate Resilience and Adaptation.”