After experiencing a sluggish January, African startups witnessed a significant surge in funding in February 2024 with Nigeria topping the fundraisers.
According to The Big Deal’s report, the total startup funding in February reached nearly $217m, marking almost a threefold increase compared to the previous month’s $77m.
The report noted that despite the rebound, funding levels still fell short of figures observed in the same period over the past four years.
In February, 38 startups raised at least $100k last month in equity, debt, or grants, the same number as in January.
However, the total amount they announced was nearly three times higher, at $217m ($156m in equity and $59m in debt).
The report showed that Nigerian fintech, transport company Moove, emerged as the largest contributor, accounting for 51 per cent of the total funding.
Initially announcing a $10m debt for its expansion in India, Moove later became the focus of reports, revealing ongoing talks with Uber for a potential investment of up to $100m.
If successful, the investment could elevate Moove’s valuation from $650m to $750m, the report stated.
With an outlook for startup funding for 2024 YTD, the report revealed that startups on the continent had raised just a little short of $300m.
It added that 80 startups had raised at least $100k, 38 of which had raised at least $1m.
The continent’s Big Four (Nigeria, Kenya, Egypt, And South Africa) had claimed 86 per cent of all the funding, according to the Big Deal’s report.
Nigeria had 42 per cent with Moove alone raking in $233m; Kenya 27 per cent, raising $81m, Egypt 10 per cent getting $28m, and South Africa seven per cent with $22m.
