According to a report by Africa:The Big Deal, a tracker on start-up funding in Africa, it reported that July emerged as a landmark month for startup fundraising across Africa, marking a significant resurgence in venture capital activity on the continent.
With an impressive $420 million raised (excluding exits), the month reportedly stands as the highest performing period in 14 months, surpassing the total funds raised in the entire second quarter (Q2) of the year.
A Surge in Fundraising Activity
A total of 47 ventures secured at least $100,000 in funding last month, making July the second-best month of the year in terms of the number of deals closed, trailing only behind May, which saw 40 grant announcements from major players like DEG, CCHub, and iHub. Among these, 16 ventures managed to raise over $1 million, consistent with the monthly average during the first half of the year.
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The surge in fundraising activity was heavily influenced by two major deals that dominated the headlines in July which include global leader in solar energy solutions d.light, which secured a massive $176 million securitization facility, and leading Egyptian fintech company MNT-Halan which raised $157.5 million.
These two mega deals alone accounted for a significant portion of the month’s total, underscoring the impact of large-scale funding rounds on the overall ecosystem. In addition to these, NALA, a Tanzanian fintech startup, successfully closed a $40 million Series A round, further boosting the month’s impressive tally. Combined, these three deals represented a staggering 90% of the total funding raised in July.
Exits and Ecosystem Growth
In addition to the record-breaking fundraising, July also witnessed four notable exits, although these were not included in the overall funding figures. The most prominent of these was the acquisition of Quicket, a South African ticketing platform, by global giant Ticketmaster.
A Milestone Year for African Startups
The stellar performance in July has propelled the African startup ecosystem beyond a significant milestone, comfortably crossing the $1 billion mark in funding raised so far in 2024, with a total of $1.2 billion. This not only exceeds the total amount raised in 2020 but also brings the ecosystem within striking distance of the $1.4 billion raised in 2019.
This achievement underscores the resilience and growth potential of African startups, even in the face of global economic uncertainties. The continent’s tech scene continues to attract substantial investment, driven by a combination of innovative solutions, untapped market potential, and a growing appetite for risk among venture capitalists.
As the year progresses, all eyes will be on whether African startups can maintain this momentum and surpass the 2019 funding milestone. With several promising ventures in the pipeline and increasing investor interest, the outlook remains positive for the continent’s burgeoning tech ecosystem.
Conclusion
July 2024 has has no doubt set a new benchmark for African startup funding, showcasing the continent’s dynamic and rapidly evolving tech landscape. The impressive fundraising figures, driven by mega deals and consistent investment in innovative ventures, highlight the growing confidence in Africa’s potential as a hub for technological innovation and entrepreneurship.
As the ecosystem continues to mature, African startups are poised to play an increasingly significant role on the global stage, attracting both local and international investment in the process.