Thirty-two African startups raised $180 in funding.
According to a report by Africa: The Big Deal, November saw 32 African startups collectively raising $180 million in funding, excluding exits, bringing 2024 funding close to $2 billion.
The funding distribution included $122 million in debt (68%), $55.5 million in equity (31%), and $2.5 million in grants (1%). The standout deal was the International Finance Corporation’s (IFC) $80 million debt backing of Sun King in Nigeria, which accounted for 44% of the total funding for the month.
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Other significant deals included Kenya-based internet service provider Mawingu securing $15 million in debt and equity for its East Africa expansion and Ivorian fintech Djamo raising a $13 million Series B round—the seventh Series B of 2024, compared to 14 last year. These four deals comprised two-thirds of November’s total funding, with 76% of the funds going to startups in Kenya and Nigeria.
In addition to funding announcements, November featured two notable exits: Egyptian construction tech startup Elmawkaa was acquired by Saudi prop-tech Ayen, and energy-focused companies SteamaCo and Shyft Power Solutions merged.
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Year-to-date (2024), African startups have raised $1.86 billion, excluding exits. This total is distributed across equity ($1.2 billion, 64%), debt ($635 million, 34%), and grants ($33 million, 2%). While optimism remains about crossing the $2 billion mark by year-end, the numbers will likely fall short of the $2.9 billion raised in 2023.
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Looking back at Q3, African startups raised over $600 million, more than double the amount secured in Q2, making it the best quarter of 2024 and comparable to Q3 2023. This was largely driven by two major deals: d.light’s $176 million securitization multi-currency facility and MNT-Halan’s $157.5 million funding round.
During Q3, 44 startups secured $1 million or more, an improvement from Q2’s four-year low but below the 2023 quarterly average of 55. Year-to-date, total funding of $1.4 billion compares favorably to pre-2020 levels but represents a 38% decline from the same period in 2023. However, the number of startups raising $1 million or more has remained relatively steady, with only a 6% year-over-year decrease.
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Notably, the funding trends and developments in 2024, carry mixed implications for African startups, reflecting both opportunities and challenges. The significant reliance on debt financing (68% of November’s funding) shows that startups are finding ways to secure capital without diluting equity. This could allow founders to retain more control over their businesses while accessing resources for scaling.
Also, the disparity in funding distribution across the continent suggests that startups outside of established hubs like Kenya and Nigeria may face challenges in accessing capital. Diversifying investments geographically and sectorally could be key to unlocking broader potential.
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African startups continue to demonstrate resilience and adaptability, with opportunities to leverage growing interest in key markets and sectors. While challenges remain, these developments underscore the resilience and potential of Africa’s startup ecosystem amid a shifting funding landscape. However, addressing regional imbalances, diversifying funding strategies, and fostering investor confidence are crucial for the ecosystem’s long-term success.
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