Africa’s startups raised $2.2 billion in equity, grants, and debt (excluding exits). While this is an impressive figure, it highlights a 25% decrease compared to last year, when startups in Africa secured $ 2.9 billion, according to ‘Africa: The Big Deal.’
Who were the major key players?
The total of $2.2 billion was primarily driven by two significant deals by Nigeria’s Moniepoint and South Africa’s Tyme Group. A gross of 188 ventures secured $1 million or greater (excluding exits) in funding, 10% less given in 2023 despite the 25% dip in 2024. Regarding the exit front, 22 exits were made public last year compared to 20 in 2023, the funding reports state.
However, if we look closer at the figures, we notice that the decline in funding can be ascribed to the slow start of the year, as under $800 million was secured in H1 (first half of the year), highlighting the slowest semester since 2020. But, figures picked up later in the year as $1.4 billion was secured in H2 (second half of the year) alone.
Debt funding can be to blame
However, we shouldn’t panic as the decrease in funding from 2023 to 2024 can be linked to a decline in debt funding, according to the report. Though 2023 was named “The Year of the Debt,” about debt funding with a notable 38% of total funding, this percentage declined to 30% in 2024, with debt funding reducing by 40% yearly.
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