September Fundraising Roundup: African Start-ups Secure $138M Across Equity, Debt, and Grants
In September, African start-ups collectively raised $138 million in deals exceeding $100,000, spanning equity (89%), debt (9%), and grants (2%). Though slightly below the previous 12-month average of $159 million per month, 61 start-ups announced fundraising, a significant increase from the 42 per month seen over the last year. The majority of the funds went to start-ups in the “Big Four” countries: Egypt, South Africa, Nigeria, and Kenya, with Ghana also making an impact.
Additionally, the month saw two notable exits: South African AI financial platform Syft was acquired by Xero for $70 million, and Nigerian fintech Risevest acquired Hisa in Kenya to expand into East Africa. Top Deals in September
Among the leading funding deals, three startups announced funding rounds exceeding $20 million:
- FlapKap: The Egypt-born and Abu Dhabi-based fintech secured the largest deal of the month, raising $34 million in a pre-Series A round. The funding was a mix of debt and equity, reinforcing its growth trajectory.
- Paymob: Another Egyptian fintech, Paymob, closed a $22 million extension to its Series B round. This milestone was particularly significant as Paymob revealed it had achieved profitability in its home market.
- Fido: Based in Ghana, fintech Fido topped the $10 million debt raise it secured in August with an additional $20 million in Series B equity funding, further boosting its growth potential in the region.
Regional Trends
Egypt, South Africa, Nigeria, Kenya, and Ghana continued to dominate the African startup landscape, securing the lion’s share of investment. These countries remain the key hubs for innovation and venture capital in Africa, with startups in fintech and other tech-driven industries leading the charge.
The increased number of startups securing funding in September is an encouraging sign of investor interest and confidence in African startups, even as the total amount raised fell slightly below the 12-month average.
