In the first half of 2024, African startups raised $580.7 million, 61% less than in the same period of 2023. The breakdown of funding was 75% equity, 24.1% debt financing, and 0.9% grants. Startups in Kenya, Nigeria, Egypt, and South Africa — the top four countries — raised 84% of the total disclosed funding in H1 2024. Kenyan startups led with $200.5 million, followed by Nigeria, Egypt, and South Africa.
Quarter-on-quarter, funding dropped by 23.8%, from $329.5 million in Q1 to $251.2 million in Q2. June saw the lowest funding with only seven deals totalling $37 million, while March and May recorded the highest amounts.
Although $152 million of the funding was for undisclosed rounds, more funds went to Series B rounds than others, followed by Seed and Series A rounds.
Mobility & Logistics vs. Financial Services
Despite the Financial Services sector having 23 startups, Mobility & Logistics raised more funds, primarily due to Moove's $110 million funding, which accounted for 64% of the industry's total.
Led by M-Kopa's $51 million, Financial Services startups raised a total of $146.5 million. Moove's $100 million Series B and $10 million debt deals were the highest, followed by M-Kopa's $51 million and Spiro's $50 million.
Founders' demography
Startups with all male founders raised 92% of the total disclosed amount, while startups with male and female co-founders raised 8%. All female founding teams raised less than 1%.
Startups with more than one founder raised $425 million, 75% of the total funding.
While African startup funding saw a significant year-on-year decline in H1 2024, key players like Kenya, Nigeria, Egypt, and South Africa continue to attract substantial investments.
The Mobility & Logistics sector outperformed Financial Services in funding, with notable contributions from Moove. However, the overall decrease in funding, especially in June, highlights the challenges faced by startups.
