Home Startups Fintech Dominates African Startup Funding in 2024, Surpassing Even Energy

Fintech Dominates African Startup Funding in 2024, Surpassing Even Energy

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Fintech emerged as the undisputed king of African startup funding in 2024, attracting over $1 billion and capturing a record 47% of the total investment.

This marks a significant increase from 42% in 2023 and solidifies the sector’s dominance in the African tech landscape.

While Fintech’s dominance was evident throughout the year, it wasn’t a smooth ride.

The sector struggled in the first half of 2024, representing only 22% of total funding. However, a flurry of deals in the second half, including significant rounds for companies like Tyme and Moniepoint, propelled Fintech to the top spot.

Notable Fintech players like M-kopa, Moniepoint, Tyme and MNT-Halan were among the top ten funding recipients in 2024.

Energy followed Fintech as the second-largest sector, securing $440 million in funding (20% of the total). This was largely driven by substantial investments in d.light ($192 million) and Sun King ($87 million), which together accounted for nearly two-thirds of the sector’s funding.

“However, the Energy sector experienced a significant year-over-year decline of 42%,” the report noted.

Logistics & Transportation maintained its third position, showing the most growth among the top sectors with a 6% increase in funding to $288 million (13% of the total).

Basigo, Spiro and Moove, which together attracted 75% of the sector’s funding, were key contributors to this growth.

“All in all, 80% of the funding invested in start-ups in Africa in 2024 went to those top 3 sectors. Other sectors, with the exception of Deeptech and Services, experienced declines in both absolute and relative terms.”

The “Services” sector benefited significantly from a Series A round for nuitée, a Morocco-based travel infrastructure API solution provider, which was one of the top 10 funding rounds of 2024.

Key Findings in Numbers:

  • Fintech: $1 billion+ in funding (47% of total), a significant increase from 2023.
  • Energy: $440 million in funding (20% of total), a decline of 42% from 2023.
  • Logistics & Transportation: $288 million in funding (13% of total), a 6% increase from 2023.
  • Top 3 sectors (Fintech, Energy, Logistics & Transportation) received 80% of total funding.

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