October 2024 marked a significant month for African startups, with a total of $254 million secured in funding, fueled by a record-setting $110 million Series C round from Nigerian fintech Moniepoint. This single investment accounted for 43% of the month’s total, reinforcing Nigeria’s leading role in Africa’s technology landscape and the increasing interest in fintech solutions across the continent.
Data from Africa: The Big Deal shows that October’s funding is the second-highest monthly total of the year, trailing only July. A total of 42 African startups raised over $100,000 each through various investment channels, including equity, debt, and grants. This milestone represents the highest October funding since 2019, coming in nearly 50% above the previous year’s monthly average.
Beyond Moniepoint’s contribution, notable funding rounds included Kenya’s electric vehicle company BasiGo, which raised $42 million in Series A funding, and the cryptocurrency platform Yellow Card, which attracted $33 million in a Series C round. Nigeria led in overall funding volume, capturing 60% of October’s total investments, with the fintech sector alone accounting for the same proportion.
Despite these achievements, gender diversity remains a challenge, with male-led startups receiving 98% of the funds, and 97% of funded ventures having no female founders. The month also saw a noteworthy acquisition, as OmniRetail acquired Nigerian-based Traction Apps—a rare exit within Africa’s growing tech ecosystem.
2024 Funding Lags Behind 2023, Yet Resilience in Key Markets
By the end of October, African startups had raised $1.7 billion for the year, reflecting a 32% drop compared to the same period in 2023. Last year, the continent had already reached this funding milestone by early June, highlighting a slowdown in investment flow. Additionally, startups raising over $100,000 fell by 10% year-over-year, while those attracting $1 million or more declined by 20%.
Nigeria, historically a hub for startup funding, experienced an overall decrease in funding activity in 2024. Moniepoint’s Series C round stood out amidst a scarcity of large-scale deals. Meanwhile, Kenya, which surpassed Nigeria as the leading destination for startup funding in 2023, continued to attract significant investment. Kenyan startups raised approximately $800 million last year—nearly double Nigeria’s $410 million. For the first half of 2024, Kenyan companies led the funding charts, securing $244 million, or 32% of the continent’s total, compared to Nigeria’s $172 million.
Despite economic uncertainties and evolving investor priorities, the October funding surge highlights the resilience and potential of Africa’s tech sector. As the year draws to a close, November is poised to bring fresh funding rounds and potentially reshape the region’s investment landscape.
