The latest report by Africa: The Big Deal, which tracks investments in the continent’s startups has revealed that only three female-led startups made the list of the top fundraisers since 2019.
According to the report, the three female-led startups that broke into the male-dominated list include Nigerian logistics start-up Kobo360 is led by Cikü Mugambi who joined as Chief of Staff and Investors Relations in 2021, before replacing co-founder and CEO Obi Ozor in August 2023.
The company is number 33 on the list of top fundraisers.
Another Nigerian logistics startup Sabi, co-founded by Anu Adasolum, who also serves as its CEO, also made the list at number 40. Sabi raised $38 million in a Series B round in May 2023, with its valuation rumored to exceed $300 million. It ranked 40 on the top 100 list.
The third startup is South Africa’s Cape Bio Pharms, led by CEO Belinda Shaw. Cape Bio Pharms raised over $50 million through a grant in 2020, though it hasn’t reported any additional fundraising since. The startup is number 44.
The top fundraisers
The report indicated that 27 African startups have raised over $100 million in equity, debt, or grant funding since 2019.
“Leading the charge is MTN-Halan, which has secured nearly $1 billion over the past five and a half years, followed by energy company Sun King and fintech giant OPay.
“If the bar is lowered to $50 million in funding, the list expands to include 56 startups. To break into the top 100, a startup would need to have raised at least $32 million over the period,” the report stated.
- It noted that despite the impressive fundraising achievements, there remains a stark gender imbalance among the top-funded startups.
- According to the report, all of the top 10 ventures that have raised $100 million or more since 2019 are led by male CEOs.
“In fact, there are no female-led ventures in the entire group of companies that have secured over $100 million,” it added.
- The report, however, noted that the only notable exception from earlier years was Gro Intelligence, a deep tech startup co-founded and formerly led by Sara Menker.
- In January 2021, Gro Intelligence raised $85 million in a Series B round, the largest round ever raised by a female-led startup on the continent. However, Menker was replaced by James Cariello earlier this year, and the company is reportedly facing closure.
What you should know
The data highlights the continued dominance of male leadership among Africa’s top startups, despite the increasing attention to gender diversity in the global tech and investment space.
Meanwhile, amid the ongoing funding drought, startups across Africa secured a total of $420 million in funding in July 2024, and that came as the highest monthly record so far this year.
- With the July record, African startups have also crossed the $1 billion mark, indicating a remarkable improvement amid funding winter.
- However, the July funding was dominated by only three deals, which accounted for 90% of the funds raised.
- According to the report, d.light’s $176 million securitization facility MNT-Halan’s $157.5 million raise, and NALA’s $40 million Series A were the major deals that pushed up the continent’s startup funding in July.
- The $420 million raised in July was not only the highest this year but also in the last 14 months.