Home Startups Start-Ups in Africa Raised $2.2 Billion in 2024 Amid Funding Challenges, Rebounds...

Start-Ups in Africa Raised $2.2 Billion in 2024 Amid Funding Challenges, Rebounds in H2

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African start-ups raised $2.2 billion in equity, debt, and grants in 2024 (excluding exits), a figure that, while significant, marked a 25% decline compared to the $2.9 billion raised in 2023, according to Africa: The Big Deal.

Despite the dip, there were bright spots. A total of 188 ventures secured $1 million or more last year, just 10% fewer than in 2023.

Additionally, the exit front saw improvement, with 22 exits publicly announced in 2024 compared to 20 the previous year.

According to the  report, the slow start to 2024 is largely to blame for the overall drop in funding, with just under $800 million raised in the first half of the year—the slowest semester since 2020.

However, the second half of the year brought a significant rebound, with $1.4 billion raised, a 25% year-over-year increase and an 80% jump compared to H1.

This surge made H2 2024 the second-best semester since the onset of the “funding winter” in mid-2022.

Driving these numbers were two mega-deals in Q4, involving Moniepoint and Tyme Group, which minted two new unicorns back-to-back—the first such events since early 2023.

Another notable trend was the shift in funding composition. Debt funding, which dominated in 2023—dubbed “The Year of the Debt” when it accounted for 38% of total funding—contracted by 40% year-over-year in 2024, contributing to the overall decline.

However, equity funding showed resilience, with $1.5 billion raised in 2024, down only 11% from the $1.7 billion raised in 2023.

This stabilization is encouraging, especially after equity funding plummeted 57% year-over-year in 2023.

Despite the challenges, the report underscores reasons for optimism, highlighting the rebound in the latter half of the year and the sustained stabilization in equity funding. “It’s not all doom and gloom,” the report notes, as the numbers point to a promising trajectory for the African start-up ecosystem.

Kenyan Startups That Raised Funding in 2024

In 2024, Kenyan startups demonstrated resilience and innovation, attracting significant investments across various sectors.

Collectively, these ventures secured approximately $250 million, accounting for 32% of all funding raised across Africa in the first half of the year.

These startups include:

Fintech & Asset Financing

  1. M-Kopa:
    • Funding: $51 million in debt financing from U.S. International Development Finance Corporation (May)
    • Founders: Nick Hughes, Chad Larson, Jesse Moore
    • Founded: 2010
    • Sector: Asset Financing
    • Overview: Provides affordable access to essential products like solar lighting, smartphones, and fridges through a flexible credit model for underbanked customers.

Electric Vehicles (EV)

  1. BasiGo:
    • Funding: $44 million (including $3 million from CFAO in March and $42 million in Series A debt-equity round in October)
    • Founders: Jit Bhattacharya, Jonathan Green
    • Founded: 2021
    • Sector: Electric Vehicles
    • Overview: Offers electric buses under a pay-as-you-drive model and plans to deliver 1,000 electric buses across East Africa by 2026.
  2. Roam:
    • Funding: $24 million in a Series A debt-equity round (February)
    • Founders: Albin Wilson, Filip Lövström, Mikael Gånge
    • Founded: 2017
    • Sector: Electric Vehicles
    • Overview: Designs and deploys electric buses and motorbikes tailored for Africa’s needs, evolving from EV conversions to vehicle assembly.

Agriculture & Insurtech

  1. SunCulture:
    • Funding: $27.5 million in Series B round (April)
    • Founders: Samir Ibrahim, Charles Nichols
    • Founded: 2012
    • Sector: Agriculture (Solar-powered irrigation)
    • Overview: Provides affordable solar irrigation systems to smallholder farmers across Kenya, Uganda, and Ivory Coast.
  2. Pula:
    • Funding: $20 million in Series B round (April)
    • Founders: Thomas Njeru, Rose Goslinga
    • Founded: 2015
    • Sector: Insurtech
    • Overview: Offers agricultural insurance to smallholder farmers across Kenya, Nigeria, Zambia, Malawi, and Mozambique, protecting against pests, diseases, and climate risks.

Internet & Connectivity

  1. Mawingu:
    • Funding: $15 million (November)
    • Founded: 2012
    • Sector: Internet Connectivity
    • Overview: Provides affordable internet services to rural and peri-urban communities in Kenya and is expanding internationally, having acquired a Tanzanian ISP.

HR & Payroll Solutions

  1. Workpay:
    • Funding: $5 million in Series A round (August)
    • Founders: Paul Kimani, Jackson Kungu
    • Founded: 2019
    • Sector: HR & Payroll Solutions
    • Overview: Offers a cloud-based platform for processing payroll, filing taxes, and managing employee attendance, with support for cross-border payroll.

Health-tech

  1. Ilara Health:
    • Funding: $4.2 million (pre-Series A round, February)
    • Founders: Emilian Popa, Maximilian Mancini, Sameer Farooqi
    • Founded: 2019
    • Sector: Health-tech
    • Overview: Provides health centers with access to medical supplies on credit, improving healthcare access across Kenya.

Climate-tech

  1. Octavia Carbon:
    • Funding: $3.9 million in seed funding (October)
    • Founders: Martin Freimüller, Duncan Kariuki
    • Founded: 2022
    • Sector: Climate-tech (Direct Air Capture)
    • Overview: Focuses on building machines capable of capturing 1,500 tons of CO₂ annually by 2025 to combat climate change.

E-commerce

  1. Chpter:
  • Funding: $1.2 million in pre-seed round (September)
  • Founders: Mesongo Sibuti, Kuria Kevin, Mark Kiarie, Tesh Mbaabu
  • Founded: 2022
  • Sector: E-commerce
  • Overview: Provides AI-powered tools to help merchants sell more effectively on platforms like WhatsApp and Instagram, operating in Kenya and South Africa.

These startups reflect the diversity and innovation within Kenya’s thriving entrepreneurial ecosystem, with significant investments supporting the development of clean energy, digital solutions, and agricultural growth.

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