Moniepoint’s raise propels African start-up funding to $254m in October

African start-ups had a record-setting October, securing $254 million across 42 deals valued at $100,000 or more, according to Africa: The Big Deal.

The report, titled ‘Best October on record,’ disclosed that October was the second-best month for funding this year after July and nearly 50 percent above the 12-month average. The month’s haul also represents the best October on record since 2019.

“One of the biggest headlines was Nigerian fintech Moniepoint, which raised $110 million in Series C funding, representing 43 percent of October’s total. With this round, Moniepoint is widely considered Africa’s latest unicorn—a title given to start-ups valued at $1 billion or more.

“However, the valuation of some of Moniepoint’s unicorn peers has been questioned, as their assessments are based on funding rounds that are now somewhat dated. Moniepoint’s round drew significant attention within the continent and beyond, underscoring Nigeria’s place as a fintech powerhouse in Africa,” it said.

Read also: How Moniepoint joined league of Nigerian unicorns

The report further disclosed that October’s funding saw several other notable rounds, including electric bus service BasiGo, which closed a $42 million Series A round, and cryptocurrency exchange Yellow Card, raising $33 million in Series C funding.

It said these top three deals accounted for a large portion of the month’s funding activity and demonstrated the continued dominance of Nigeria’s fintech sector. Overall, 60 percent of the funds raised last month went to start-ups based in Nigeria, and 60 percent went to fintech firms.

However, October’s funding numbers also highlighted some persisting disparities within the African tech environment. Regarding gender, 98 percent of the total funding went to start-ups with male CEOs, and 97 percent was directed to ventures without a female founder. T

Further analysis of The Big Deal report revealed that October also saw a notable acquisition, with OmniRetail acquiring Traction Apps in Nigeria. This marks one of the few exit transactions announced in 2024, amid a year marked by both exciting new deals and a gradual slowdown in overall venture funding across the continent.

“To date, African start-ups have raised $1.7 billion in 2024 (excluding exits), a 32 percent drop compared to the same period in 2023. At this point last year, this funding level had already been reached by early June—nearly five months ahead of this year’s timeline.

“The decrease in year-on-year funding reflects a global venture capital slowdown, which has impacted deal flow, particularly for rounds above $1 million. So far in 2024, 393 African start-ups have closed deals worth $100,000 or more, down 10 percent year-on-year, with only 137 securing $1 million or more, a 20 percent drop from last year,” it added.