According to a report by Africa: The Big Deal, October proved to be a record-breaking month for African start-ups, with 42 ventures securing a total of $254 million in equity, debt, and grant deals over $100,000 (excluding exits).
This impressive funding month marked the second-highest amount raised this year, following July, and was nearly 50% above the average for the past 12 months. The report highlights that this month’s funding stands out as the strongest October since 2019.
A major highlight of the funding round across the African continent, which was a landmark achievement for the African fintech sector, was Nigerian fintech Moniepoint’s $110 million Series C round led by African Development Partners (ADP) III fund, a premier fund focused on Africa. This round accounted for 43% of the month’s total funding and drew considerable attention as the continent potentially welcomed its 8th unicorn.
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The fintech giant’s rise to unicorn status is not just a testament to its robust business model but also reflects the growing investor confidence in Africa’s fintech ecosystem. Despite a regional slowdown in tech funding, Moniepoint’s success story underscores the potential and resilience of African startups.
Notably, other significant rounds last month, included BasiGo’s $42 million Series A funds raising, to support the deployment of e-buses in Kenya and Rwanda, and cryptocurrency exchange Yellow Card’s $33 million Series C investment led by Blockchain capital to drive expansion.
Overall, 60% of October’s funding went to Nigerian start-ups, with the fintech sector leading the charge by also capturing 60% of total funds. However, the funding landscape highlighted a notable gender gap, with 98% of investments going to ventures with male CEOs and 97% to start-ups without a female founder.
On the M&A front, OmniRetail, a B2B eCommerce startup in Nigeria, acquired Traction Apps, a Nigerian fintech, for an undisclosed fee. Following the acquisition, the Traction PoS solution will be integrated into OmniPay, a payment solution launched by OmniRetail in 2020. This deal marked the only exit announcement of the month.
Despite October’s standout performance, overall funding in 2024 remains below last year’s pace. African start-ups have so far raised a cumulative $1.7 billion, reflecting a 32% year-over-year decline compared to the same period in 2023. By this time last year, this amount had already been reached by early June.
To date, 393 start-ups have raised at least $100,000 in 2024, with 137 securing rounds over $1 million, representing year-over-year declines of 10% and 20%, respectively.
As the year winds down, all eyes are now on November to see if this funding momentum will continue into the final months of 2024.