Africa’s Unicorn Boom: A $16 Billion Startup Journey
In the past six years, African unicorns—startups with valuations of $1 billion or more—have collectively raised over $16 billion, with nine standout companies leading the charge. Nigerian giants such as Moniepoint, Flutterwave, and Interswitch, alongside six other unicorns across the continent, have attracted more than $3 billion in equity funding since 2019.
For perspective, data from Africa: The Big Deal shows that African startups raised a total of $13 billion in equity during the same period. This underscores the significance of these unicorns in shaping Africa’s innovation landscape.
Tyme and Moniepoint: The Newest Unicorns
Just recently, Tyme entered the unicorn club after a $250 million Series D round pushed its valuation to $1.5 billion. This milestone came mere weeks after Moniepoint announced its own Series C funding, securing its unicorn status.
The journey of African unicorns can be traced back to Jumia, an e-commerce pioneer that made headlines in the early 2010s by raising over $200 million between 2012 and 2014. This culminated in a $300 million round in 2016 under its parent company, Africa Internet Group, earning Jumia its unicorn status. However, after going public on the New York Stock Exchange (NYSE) in 2019, Jumia’s market cap fluctuated significantly, initially soaring to $3 billion, peaking at $5 billion, and eventually falling below the $1 billion mark by early 2022. Today, Jumia’s valuation stands at approximately $600 million, no longer meeting the unicorn criteria.
Another significant player often misidentified as a unicorn is the Egyptian fintech Fawry. After going public on the Egyptian Stock Exchange in 2019, Fawry reached a $1 billion valuation as a public company rather than as a private startup. Its market cap, however, has since dropped to around $600 million.
Interswitch marked the beginning of Africa’s unicorn journey in 2019, becoming the continent’s first unicorn after a $200 million investment from Visa. This milestone came 18 years after the company’s founding, a stark contrast to the five-year average it takes for other African startups to achieve unicorn status. Flutterwave followed in 2021 with a $170 million Series C round, reaching a valuation of over $1 billion. By 2022, Flutterwave’s valuation had soared to over $3 billion after a $250 million Series D round, making it the most valuable privately-owned startup in Africa today.
From Jumia’s groundbreaking start to Moniepoint and Tyme’s recent entries, African unicorns are reshaping the continent’s tech landscape. These startups not only exemplify innovation and resilience but also attract significant investment flows, signaling a transformative era for Africa’s digital economy.
