2024 Trends in African Startup Funding
As we reflect on the past year, African startups saw funding surpass $2 billion, a return to pre-pandemic levels that brought a mixed bag of outcomes. Looking ahead to 2025, the signs point to a continuation of cautious trends that have characterized the past two years.
The decline in mega-deals, reflecting a global tightening of venture capital since the boom of 2020-2021, has led local and international investors to prioritize sustainable business models and clear paths to profitability. This shift has proven challenging for well-funded startups that failed to meet these criteria, resulting in high-profile closures such as Copia and Gro Intelligence, both of which had raised over $100 million in venture funding.
While startup failures in Africa were once concentrated in the pre-seed and Series A stages, recent closures like Dash and 54gene in 2023 signal a turning point where even growth-stage and late-stage startups face increasing risks.
Despite these challenges, some startups have opted for strategic pivots to weather the storm. For example, B2B e-commerce giants Wasoko and MaxAB merged operations to conserve cash and streamline resources, demonstrating resilience in the face of adversity.
On the other hand, startups like Moniepoint, Moove, and TymeBank have thrived, attracting investments from notable players like Uber, Google, and Nubank. Their strong growth metrics and profitability have set them apart in the competitive landscape.
These developments highlight the dual realities of Africa’s post-boom tech ecosystem: escalating challenges alongside resilient adaptations.
Unicorns in Africa
Flutterwave (2021) — $3 billion: Nigerian fintech Flutterwave provides payment solutions for individuals and businesses across Africa, with investments from Tiger Global, Avenir Growth, and DST Global.
OPay (2021) — $2 billion: Offering digital financial services, OPay has raised over $500 million, with investments from SoftBank Vision Fund 2, Sequoia Capital China, and Redpoint China.
Wave (2021) — $1.7 billion: Senegal-based Wave provides mobile money services in Francophone Africa, backed by investors like Stripe, Sequoia Heritage, and Ribbit Capital.
Andela (2021) — $1.5 billion: Global talent marketplace Andela connects companies with tech professionals, with funding from SoftBank, the Chan Zuckerberg Initiative, and Spark Capital.
TymeBank (2024) — $1.5 billion: South African digital bank TymeBank offers a range of financial products targeting lower-income individuals and businesses, with investments from Nubank, Tencent, and others.
Chipper Cash (2021) — $1.25 billion: Enabling money transfers and investments across African countries, Chipper Cash has raised over $300 million from investors like FTX and Ribbit Capital.
Interswitch (2019) — $1 billion: Providing payment solutions across Africa, Interswitch has raised over $300 million, with Visa and Helios Investment Partners among its backers.
MNT-Halan (2023) — $1 billion: Egyptian financial super app MNT-Halan offers a range of services to the underserved, with investments from Chimera Investments, Apis Growth Fund II, and others.
Moniepoint (2024) — $1 billion: Nigerian fintech Moniepoint offers financial services tailored for businesses and individuals across Africa, with investments from QED, Development Partners International, and others.
Moniepoint and TymeBank, valued at $850 million and $965 million respectively, emerged as Africa’s leading contenders for unicorn status in 2024.
African “Soonicorns”
PalmPay — $800 million to $900 million: Nigerian fintech PalmPay offers money transfers, bill payments, and credit services, with investments from Transsion Holdings, Chuangshi Capital, and others.
Moove — $750 million: Mobility fintech Moove provides vehicle financing for gig workers, with investments from Uber, Mubadala Investment Company, and others.
Yassir — $600 million to $800 million: Algerian super app Yassir offers on-demand services across six countries, with funding from BOND, Y Combinator, and Stanford Alumni Ventures.
Kuda — $500 million: Nigerian digital-only bank Kuda offers a range of financial services and smart budgeting features, with investments from Target Global and Valar Ventures.
Wasoko/MaxAB — About $500 million: Kenyan and Egyptian B2B e-commerce platforms Wasoko and MaxAB merged to create Africa’s largest digital platform for informal retail, with investments from Tiger Global, Silver Lake, and others.
Clickatell — About $500 million: South African startup Clickatell enables businesses to engage with customers through messaging channels like SMS and WhatsApp, with investments from Sequoia Capital, Arrowroot Capital, and others.
M-KOPA — About $500 million to $600 million: Kenyan lender M-KOPA offers affordable access to smartphones and financial services across sub-Saharan Africa, with investments from Sumitomo, Lightrock, and others.
Yoco — $400 million to $500 million: South African fintech Yoco provides payment solutions for small and medium-sized enterprises, with investments from Dragoneer Investment Group, Breyer Capital, and others.
Onafriq — About $300 million to $500 million: South African fintech Onafriq operates a digital payments hub connecting mobile money wallets across Africa, with investments from AfricInvest, CommerzVentures, and others.
