Startups in Africa secured a total of $77 million in funding during January 2024, with Nigeria receiving $5 million of the investment. This information was revealed in the ‘Africa: The Big Deal’ report, which identified 38 deals worth over $100,000. Despite the substantial amount raised, January marked the second-lowest month for fundraising since early 2021, with only March 2023 reporting lower numbers.
Within the investment landscape, three deals making up 38 percent of the total raised were in the eight-digit range. Yodawy, a healthtech startup from Egypt, secured $10 million, while Apollo Agriculture, an agritech company from Kenya, also secured $10 million. Hatch Africa, a pan-African agritech startup, received $9.5 million.
According to the report, 74 percent of the funding announced was in the form of equity, while the remaining 26 percent was raised as debt. Notable debt transactions included Hatch Africa’s funding, as well as a $7 million investment in Sun King. The report also highlighted the acquisition of Egyptian edtech company Orcas by Baim, although the financial details of the deal were undisclosed.
The report further revealed that the sectors attracting the most funding were Agriculture & Food, which received $24 million through five deals, including investments in Apollo Agriculture and Hatch Africa. The Healthcare sector secured $14 million across four deals, with Yodawy leading the way. Fintech also emerged as a popular sector, receiving $13 million in funding, although it led in terms of the number of deals, with a total of 10. Climate Tech-related deals, spanning various sectors, accounted for 21 percent of the total raised, amounting to $16 million, which is lower compared to the overall figures for 2023.
Egypt, Kenya, and Nigeria each announced eight deals worth over $100,000. However, despite the same number of deals, Egypt and Kenya took the lead in terms of funding raised, securing $24 million each. These two countries accounted for 72 percent of the total funds raised, excluding Hatch Africa. South Africa followed closely with $7 million raised from three deals, while Nigeria ranked fourth, with $5 million in funding. Collectively, the Big Four countries received 90 percent of the total funding and accounted for 75 percent of all deals announced.
The successful fundraising efforts in Africa during January 2024 point to the continued growth and potential of the African startup ecosystem. As various sectors such as Agriculture & Food, Healthcare, and Fintech attract significant investments, these startups have the opportunity to drive innovation, create job opportunities, and contribute to economic development across the continent. With Nigeria securing $5 million in funding, it demonstrates that the country is becoming an increasingly attractive destination for investors looking to tap into the African startup market.
Overall, the ‘Africa: The Big Deal’ report signifies the promising start to the year for African startups, highlighting their impressive ability to secure substantial investment. As funding continues to pour into various sectors, the potential for growth and positive impact in Africa’s entrepreneurial landscape becomes increasingly evident.
