According to a report by Africa: The Big Deal, September saw a notable month of fundraising activity for African startups, with a total of $138 million announced across $100k + deals, including equity, debt, and grants.
While this figure is slightly below the average monthly amount raised over the past year, ($159 million/month), it marks a significant level of investment across the continent.
A total of 61 startups disclosed some level of fundraising ($100k+ excluding exits), which is a substantial increase compared to the average of 42 startups raising capital monthly in the last 12 months. These ventures spanned twelve countries, though 90% of the funds raised were concentrated in Africa’s “Big Four” startup ecosystems: Egypt, South Africa, Nigeria, and Kenya, along with Ghana. The remaining countries represented included Morocco, Algeria, Tunisia, Côte d’Ivoire, Tanzania, Uganda, and Rwanda.
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Top Deals in September
Among the leading funding deals, three startups announced funding rounds exceeding $20 million:
1. 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.
2. 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.
3. 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.
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.
In addition to fundraising activities, September also saw two notable exits. The most significant was the acquisition of South African Al-powered financial reporting platform Syft by global accounting software giant Xero for $70 million. This deal highlights the growing international interest in Africa’s tech ecosystem.
Additionally, Nigerian fintech Risevest announced its acquisition of Kenyan platform Hisa as part of its expansion strategy into the Kenyan market. This acquisition marks an important step for Risevest as it seeks to strengthen its presence in East Africa.
Notably, Africa’s “Big Four”, 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.
Despite a slight dip in total funds raised compared to previous months, September was an active and promising month for African startups. The increasing number of ventures securing funding demonstrates the growing dynamism of the continent’s entrepreneurial ecosystem.
Fintech, in particular, continues to play a pivotal role, attracting significant investment and driving growth across Africa’s, most vibrant economies. With major deals and strategic exits, the African startup scene is poised for further expansion and development.