African Startups Collectively Raised $217 Million in February, With Nigeria Taking The Lead in Fundraising Efforts
In February 2024, African startups bounced back from a slow January, experiencing a notable surge in funding, with Nigeria leading the pack in fundraising activities.
As outlined in The Big Deal’s report, total startup funding in February soared to nearly $217 million, marking an impressive threefold increase compared to the previous month’s $77 million.
While this rebound was significant, the report highlighted that funding levels still fell short of the 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 the number recorded in January.
Despite this, the total amount they announced was nearly three times higher, reaching $217 million ($156 million in equity and $59 million in debt). The report highlighted Nigerian fintech and transportation company Moove as the primary contributor, responsible for 51 percent of the total funding.
Originally 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 highlighted, “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.”
Looking at 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) had claimed 86 per cent of all the funding, according to the Big Deal’s report.
Nigeria had 42 per cent with Moove alone raking in $233m; Kenya 27 per cent, raising $81m, Egypt 10 per cent getting $28m, and South Africa seven per cent with $22m.
