African startups collectively raised $250 million in funding in October, driven by a significant $110 million Series C round from Nigerian fintech company Moniepoint.
This funding achievement represents a strong performance for the month, as highlighted in the latest report from Africa: The Big Deal, which tracks startup investment across the continent.
Moniepoint’s Series C funding alone accounted for 43% of the total amount raised by African startups in October.
Second-best month for African startups
According to the report, the substantial raise also contributed to making October 2024 the second-highest month for funding this year, surpassed only by July.
- Overall, the month’s total funding was nearly 50% higher than the average monthly funding over the past 12 months, setting a new record for October since 2019.
- Moniepoint’s funding success has sparked conversations about the fintech sector’s growth and potential in Africa, with some speculating that the continent may have added another unicorn.
- However, the exact valuation of Moniepoint remains uncertain, as do the valuations of some of its peers, which are based on older funding rounds.
Other notable deals
Other notable deals in October included BasiGo’s $42 million Series A and a $33 million Series C secured by cryptocurrency exchange Yellow Card.
- Nigeria emerged as a key hub for startup investment, attracting 60% of the total funding for the month.
- Additionally, fintech remained the dominant sector, receiving 60% of the total investments.
- Despite this positive funding activity, the report revealed gender disparities in startup leadership. Approximately 98% of the funding went to startups led by male CEOs, and 97% of the funds were allocated to ventures without a female founder.
- The only exit recorded in October was OmniRetail’s acquisition of Traction Apps in Nigeria.
Year-to-date funding record
Looking at the year-to-date performance, African startups have raised a total of $1.7 billion (excluding exits) in 2024, representing a 32% decline compared to the same period in 2023.
By this time last year, the same funding amount had been achieved by early June, highlighting a slowdown in investment activity.
Additionally, 393 startups have raised $100,000 or more in 2024, marking a 10% decline year-over-year. Of these, 137 ventures secured $1 million or more in funding, a 20% drop compared to 2023.
What you should know
Moniepoint’s October fundraising made it the second big ticket for Nigerian startups this year, the first being which had raised $100 million in a Series B round led by Uber, and a $10 million debt deal to finance its India expansion.
- Outside these two, Nigerian startups have been experiencing a scarcity of big deals this year, while the small deals come in trickles.
- Nigeria, which was for years the leading destination for startups funding in Africa lost its top position to Kenya in 2023, with Kenyan startups attracting approximately $800 million, the largest amount in the continent, while Nigerian startups secured $410 million.
- In the first half of 2024, African startups secured $780 million in funding. Out of that $780 million Kenyan startups garnered the largest amount, $244 million, representing 32% of the total funding raised, while Nigeria received approximately $172 million. Egypt took a share of $101 million, and South Africa secured $85 million.
