African Startups Secure $600 Million in Q3 2024, Driven by d.light and MNT-Halan’s Major Investments
African startups experienced a pivotal boost in funding during the third quarter of 2024, raising a total of $600 million, as reported by Africa the Big Deal, a startup funding analytics company. The impressive figure, which includes equity, debt, and grants (excluding exits), marks the largest quarterly raise of the year, surpassing previous quarters.
This $600 million total is a significant improvement over the $300 million raised in Q2 2024, the poorest-funded quarter to date, representing a 100% increase. Although Q1 attracted over $5 billion in investment, Q3 remains notable for its impressive gains compared to previous quarters. Year-on-year, the $600 million raised in Q3 reflects a 20% increase from the $500 million secured during the same period in 2023.
The third quarter’s strong performance was powered by 44 startups, each raising at least $1 million, reflecting a 15.7% increase over the 38 startups that achieved the same in Q2. However, this number was slightly lower than Q3 2023, when 48 startups raised $1 million or more, indicating an 8.3% decline.
Despite this drop, two major funding announcements played a crucial role in driving the impressive total. The first was d.light, a global provider of household products and affordable finance for low-income communities, which secured $176 million in July. The multi-currency securitization facility, led by African Frontier Capital, aims to provide access to renewable energy for six million people across Kenya, Uganda, and Tanzania over the next three years.
The second significant funding event came from Egyptian fintech giant MNT-Halan, which raised $157 million in July. This round was fueled by contributions of $40 million from the International Finance Corporation (IFC) and additional investments from Development Partners International (DPI), Lorax Capital Partners, Apis Partners LLP, Lunate, and GB Corp. With this fresh funding, MNT-Halan aims to expand beyond its current market
