With investors worldwide tightening their purse strings due to high interest rates, African tech funding saw another significant year-on-year downturn.
Much like the global venture capital (VC) landscape, Africa’s startup ecosystem felt the effects of a challenging funding environment in 2024. With investors worldwide tightening their purse strings due to rising interest rates and a strong U.S. economy, African tech funding also witnessed a significant downturn. As of November 2024, total VC funding on the continent had declined by 32% year-over-year, reflecting broader global trends.
Preliminary estimates suggest African startups raised approximately $2 billion this year, a sharp drop from the $2.9 billion recorded in 2023. Despite the funding contraction, many African startups continued to secure significant investments, with two new unicorns minted in Tymebank and Moniepoint, showcasing resilience and adaptability in a tough economic climate.
We highlight the 15 largest funding rounds of 2024, including debt rounds and focusing on companies with substantial operations in Africa.
Tyme Group, a digital banking firm backed by South African billionaire Patrice Motsepe, led the funding charts with its $250 million raise. The round was spearheaded by Latin America’s Nu Holdings, which contributed $150 million, with additional investments from M&G’s Catalyst Fund, Tencent, and Norrsken22.
TymeBank, the group’s South African subsidiary, has over 10 million customers. The company also operates a joint venture in the Philippines and has expanded into Vietnam, serving a total of 15 million global users. Tyme aims to replicate its success in Southeast Asia and Africa, with plans for an IPO by 2028 and a target return on equity of 30% in South Africa.
Egypt’s MNT-Halan, a leading fintech, focuses on providing digital financial services to the unbanked. Its ecosystem includes small and micro-business lending, payments, consumer finance, and e-commerce.
The $157.5 million round, led by the International Finance Corporation (IFC), also saw participation from Development Partners International and Apis Partners. This funding will support its ambitious geographical expansion across Africa and other emerging markets.
Nigerian fintech Moniepoint, formerly known as TeamApt, raised $110 million in a Series C round led by Development Partners International.
Moniepoint operates as an all-in-one financial ecosystem offering payment solutions, banking services, credit, and business management tools. The company, which powers most point-of-sale (POS) transactions in Nigeria, processes $17 billion monthly. The funding will help Moniepoint accelerate its growth and expand its offerings across Africa.
Moove, a Nigerian mobility fintech startup, secured $100 million in funding to expand its vehicle financing services for ride-hailing and delivery app drivers. The round was led by Uber and the Mubadala Investment Company.
The funds will support Moove’s expansion into new global markets, with a focus on scaling its innovative, revenue-based vehicle financing solution.
5. M-KOPA – $51 Million
M-KOPA, headquartered in Kenya, is a fintech platform that provides underbanked customers with access to financing and digital financial services. The company raised $51 million in debt financing from the U.S. International Development Finance Corporation (DFC).
Founded in 2011, M-KOPA has connected millions of customers to essential products such as solar-powered devices and smartphones. This funding will enable further expansion into additional African markets.
Spiro, an electric vehicle company, raised $50 million in debt financing from Afreximbank to drive sustainable transportation initiatives in Africa.
Spiro’s goal is to accelerate the adoption of electric vehicles across the continent, contributing to cleaner and more efficient transportation systems. The funds will be used to develop charging infrastructure and scale production.
Tanzania-founded fintech startup NALA raised $40 million in Series A funding to expand its cross-border payment solutions and develop Rafiki, its B2B payments platform. NALA enables fast and secure money transfers from Europe, the UK, and the U.S. to multiple African countries.
The funding, led by Acrew Capital and supported by angels such as Ryan King and Vlad Tenev, will help NALA grow its consumer and business offerings, bridging gaps in Africa’s financial ecosystem.
Yellow Card, a pan-African fintech startup specializing in crypto transactions, raised $33 million in Series C funding. The funds, led by Blockchain Capital, will enhance its API and widget products, enabling international businesses and pan-African companies to easily integrate stablecoin solutions.
With operations in 20 African countries and over $3 billion in transactions facilitated, Yellow Card is positioned as a leader in Africa’s crypto space.
SunCulture, a Kenyan agritech startup, raised $27.5 million in a Series B round to fuel its growth and expand its portfolio of solar-powered irrigation solutions.
SunCulture’s technology has been transformative for smallholder farmers, increasing crop yields and reducing costs. Investors in this round included Reed Hastings, InfraCo Africa, and EDF Group, among others.
Roam, formerly known as Opibus, raised $24 million to expand its production of electric motorcycles and buses tailored for the African market.
The Kenyan startup, which focuses on locally designed and manufactured vehicles, received funding from Equator Africa and the U.S. Development Finance Corporation. The investment will support Roam’s mission to revolutionize African transportation.
Egypt’s Paymob extended its Series B funding with an additional $22 million to pursue growth in Africa and the Middle East.
The company provides a robust payment infrastructure, including mobile wallet solutions, and empowers 350,000 merchants. The round was led by EBRD Venture Capital, with participation from Endeavor Catalyst and existing investors.
Kenyan agricultural insurance and technology company Pula raised $20 million in a Series B round. Pula designs innovative insurance products that help smallholder farmers mitigate risks related to climate change.
By bundling insurance with inputs like seeds and credit, Pula aims to improve farmer resilience and incomes. The funds will support scaling operations across emerging markets.
Hewatele, a Kenyan startup providing medical oxygen, raised $20 million in financing to expand its operations in East Africa.
The funding will address critical shortages in medical oxygen, improving healthcare access in underserved areas. Hewatele’s innovative approach ensures affordable and reliable oxygen delivery to hospitals and clinics.
Planet42, a South Africa-based car subscription company, secured $16 million in a debt and equity funding round.
The company leverages data analytics to assess credit risk and provide flexible vehicle ownership solutions. The funding, led by Standard Bank, will help Planet42 expand its reach and enhance its local currency financing options.
Egypt’s OneOrder, a tech-enabled food supply chain startup, raised $16 million in a Series A round led by Delivery Hero Ventures.
OneOrder provides restaurants with a seamless, centralized platform for procuring supplies, streamlining operations, and reducing costs. The funds will support its expansion into the GCC region and further develop its technology.
Our Outlook for 2025
The road ahead for African startups remains challenging. With inflation elevated and interest rates unlikely to see sharp cuts in the near term, the funding environment may stay subdued in 2025.
However, the resilience displayed by African startups this year highlights the potential for innovation and growth in the face of adversity. Investors will likely continue to focus on startups addressing critical needs, such as fintech, climate tech, and mobility.
While the funding numbers may remain modest, the ecosystem’s adaptability and the increasing global interest in African markets offer hope for a brighter future.
