As of November 2024, the global landscape of venture capital (VC) funding has reflected significant shifts, and Africa’s tech ecosystem is no exception. Faced with tightening budgets due to rising interest rates and fluctuations in the U.S. economy, African tech funding has experienced a notable decline, falling by 32% compared to the previous year. This has resulted in total VC funding on the continent dropping from $2.9 billion in 2023 to approximately $2 billion in 2024.
Despite the overall downturn, the continent’s startup scene has demonstrated resilience. Notably, two new unicorns emerged: Tymebank and Moniepoint, signaling a robust adaptability within the tech funding landscape. As we delve deeper, we’ll spotlight the largest funding rounds of 2024, encompassing various sectors and geographical scopes.
Leading the Charge: Tyme Group
At the forefront of the funding landscape is Tyme Group, a digital banking firm that successfully secured $250 million in funding. This round, which marked a significant achievement, was led by Latin America’s Nu Holdings, which contributed $150 million. Other notable investors included M&G’s Catalyst Fund, Tencent, and Norrsken22. With over 10 million customers in South Africa and expansion efforts in the Philippines and Vietnam, Tyme is planning an IPO by 2028.
Fintech Innovations: MNT-Halan
Egypt’s MNT-Halan, a fintech company dedicated to enhancing digital financial services for the unbanked, raised $157.5 million in a funding round led by the International Finance Corporation (IFC). This funding is poised to bolster its efforts in providing financial services to small and micro-businesses across Africa and other emerging markets, expanding its digital ecosystem and enhancing accessibility.
Moniepoint: Financial Ecosystem Evolution
Nigeria’s Moniepoint, formerly known as TeamApt, has also secured attention with its $110 million Series C funding. Led by Development Partners International, this round will help Moniepoint expand its all-in-one financial ecosystem, which facilitates payment solutions and banking services across Nigeria, processing an impressive $17 billion in monthly transactions.
Mobility and Financing: Moove
Nigerian mobility fintech startup Moove raised $100 million in financing to enhance its vehicle financing services for drivers in ride-hailing and delivery apps. Led by Uber and the Mubadala Investment Company, these funds will pave the way for Moove’s expansion beyond Nigeria, particularly focusing on innovative revenue-based vehicle financing solutions.
Forging Ahead: Other Notable Funding Rounds
Several startups have also made significant strides in attracting funding, showcasing diverse innovations across sectors. For instance, M-KOPA, a fintech platform in Kenya, raised $51 million from the U.S. International Development Finance Corporation (DFC) to continue its mission of providing essential products through credit financing.
Meanwhile, Spiro, an electric vehicle company, secured $50 million in debt financing from Afreximbank, intending to lead sustainable transportation initiatives across the continent.
Cross-Border Solutions: NALA and Yellow Card
The fintech realm continues to thrive, with NALA raising $40 million in Series A funding to enhance its cross-border payment solutions, greatly benefiting from investments by Acrew Capital. Similarly, Yellow Card, a prominent player in Africa’s crypto space, raised $33 million to develop its API and further integrate stablecoin solutions across its existing operations in 20 African countries.
Agritech Innovations: SunCulture and Pula
Agricultural technology also saw exciting developments. Kenyan startup SunCulture raised $27.5 million to expand its solar-powered irrigation solutions, significantly benefiting smallholder farmers. Pula, another Kenyan agritech company, secured $20 million in funding for innovative insurance products tailored for farmers, further enhancing resilience against climate change.
Healthcare and Lifestyle: Hewatele and Planet42
In the realm of healthcare, Hewatele‘s recent $20 million fundraising aims to tackle critical shortages of medical oxygen in East Africa. Alongside it, Planet42 raised $16 million to advance its car subscription services, leveraging data analytics to provide flexible vehicle ownership solutions.
Moreover, OneOrder, a tech-enabled food supply chain startup in Egypt, raised $16 million, aiming to streamline restaurant procurement processes across the region.
Looking Forward to 2025
As we navigate through 2024 and look toward 2025, the outlook for African startups remains complex. With inflation and interest rates persisting at elevated levels, the funding environment is expected to remain subdued. Nevertheless, the innovative spirit exhibited by startups indicates a promising future, especially for sectors like fintech, climate tech, and mobility that are addressing pressing needs across the continent.
The journey ahead may be filled with challenges, but the increasing global interest in Africa’s markets and the demonstrated adaptability of its startups offer a glimmer of hope for the tech ecosystem in the near term.