Nigeria Captures Only 14% of African Startup Funding in August 2024, Contributed by A Single Funding Round
A single funding round by Nigerian fintech Waza significantly contributed to Nigeria’s 14% share of the $56 million raised by African startups in August 2024, according to a new report from research firm ‘Africa: The Big Deal.’
Waza, a Y Combinator-backed B2B payment and liquidity provider for emerging markets, secured $8 million in a mix of equity and debt funding. This included a $3 million seed equity round and $5 million in debt, positioning Waza among the top three funding deals in August. The other notable investments were Dutch DFI FMO’s $10 million Series B investment into Ghana’s fintech Fido and Solarise Africa’s $9 million deal.
August 2024 saw a steep 87% drop in startup funding compared to July’s $443 million record, making it the second-slowest month in four years, after June’s $42 million. Notably, 87% of the funds raised were in equity, with 9% in debt and 4% in grants. Only 27 startups announced funding rounds, well below the 12-month average of over 40, and no exits were recorded.
Nigeria’s startup scene continues to struggle, with just one major deal in both August and July. For context, Intrion Health’s $1.6 million pre-seed round was Nigeria’s sole notable fundraising in July.
Nigeria, once the leading hub for African startup funding, has seen its dominance wane. In 2023, Kenya overtook Nigeria, raising around $800 million compared to Nigeria’s $410 million.
The first half of 2024 saw African startups secure $780 million, with Kenyan startups capturing 32% ($244 million), while Nigeria claimed $172 million, trailing behind Egypt’s $101 million and South Africa’s $85 million.
