African tech startups raised $466 million in the first quarter of 2024. This is according to a report by African tech startup insights company, Africa: The Big Deal. This figure, though impressive, is 47 per cent lower than the nearly $900 million raised in the corresponding period in 2023.
However, more African tech startups raised more than $1 million dollars in Q1 2024 compared to Q1 2023.
The report also revealed that 121 African tech startups were responsible for the total funding attracted to the continent. These startups raised up to $100,000 or more.
Furthermore, the majority of the funding which took place in the quarter under review was equity funding, accounting for $332 million, which is 71 per cent of the total funding. This represents a 9 per cent quarter-on-quarter decline and an outstanding 47 per cent year-on-year decline.
Debt funding, on the other hand, accounted for $132 million, representing 28 per cent of the total funding. This was a 44 per cent quarter-on-quarter decline and a 46 per cent year-on-year decline.
Nigeria’s Moove leads the pack with 24% of African tech startups’ total funding
Nigerian mobility startup, Moove was the shining beacon of the quarter as it accounted for a huge chunk of total funding into the continent. After raising $100 million in equity funding led by Uber, and an additional 10 million in debt financing led by Stride Ventures, the startup claimed 24 per cent of the total funding in the quarter.
The round which brings Moove closer to a unicorn status with a $750 million valuation was also backed by the sovereign wealth fund Mubadala, which led the company’s previous round. The round was also backed by several other investors including the Dubai-based The Latest Ventures, AfricInvest, Palm Drive Capital, Triatlum Advisors, and Future Africa.
Kenyan transport and logistic startup, Roam attracted the next highest funding into the continent with a $24 million raise. The raise comprised $14 million equity and $10 million debt financing. Kenyan health technology company, HewaTele attracted the third most funding into the continent with $20 million funding, comprising $10 million in equity and debt.
In general, Nigerian startups attracted the most funding into the continent for the quarter under review, being responsible for $160 million. This represents an outstanding 35 per cent of the total funding. Kenya followed with $108 million representing 24 per cent.
South Africa accounted for $72 million and 16 per cent while Egypt attracted $53 million which represents 12 per cent. Overall, the Big Four African tech startup ecosystem accounted for 87 per cent of the total funding.
Other African countries that attracted more than $5 million in funding in Q1 2024 include Uganda which attracted $16 million, Ghana with $10 million, Tanzania with $9 million, and Morocco with $7 million.
The transport and logistics sector emerged as the most vibrant sector by funding, attracting 32 per cent of the total funding. Fintech followed with 23 per cent, agric and food attracted 11 per cent as did the energy sector, Health tech attracted the least with 10 per cent.
Male-led tech startups continued their dominance in the quarter, with 99 per cent of funding going to startups with at least one male founder. Only 15 per cent of funding went to startups with at least one female founder.
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