Summarized by AI Model:Overglitch/t5-small-cnn-dailymail
This achievement raises the 2024 financing total to around $2 billion . According to the financial split, there was $2.5 million (1%) in grants, $55.5 million (31%), and $122 million (68%) in debt . International Finance Corporation's $80 million debt backing of Sun King in Nigeria was one of the month's most notable transactions .A noteworthy accomplishment was made in November when 32 African businesses raised $180 million in capital, excluding exits, according to a report by Africa: The Big Deall. This achievement raises the 2024 financing total to around $2 billion. According to the financial split, there was $2.5 million (1%) in grants, $55.5 million (31%), and $122 million (68%) in debt. The International Finance Corporation’s (IFC) $80 million debt backing of Sun King in Nigeria was one of the month’s most notable transactions; it made up 44% of all funds raised in November.
Mawingu, an internet service company located in Kenya, obtained $15 million in financing and equity to fund its expansion throughout East Africa, among other noteworthy deals. Furthermore, Djamo, an Ivorian fintech business, raised $13 million in a Series B transaction. This was the seventh Series B deal of 2024, as opposed to 14 the year before. These four significant agreements accounted for two-thirds of November’s overall funding. Moreover, 76% of the cash raised during the month went to firms in Kenya and Nigeria, which dominated the funding scene.
The merging of energy-focused businesses SteamaCo and Shyft Power Solutions, as well as the purchase of Egyptian construction tech company Elmawkaa by Saudi prop-tech giant Ayen, were noteworthy exits in the African startup sector in November. Excluding exit transactions, African companies have raised a total of $1.86 billion so far in 2024. This funding is divided into grants ($33 million, or 2%), debt ($635 million, or 34%), and stock ($1.2 billion, or 64%).
The amount is anticipated to be less than the $2.9 billion raised in 2023, despite hopes of hitting the $2 billion milestone before the end of the year. Looking back on Q3 2024, African startups raised almost $600 million, more than twice as much as they did in Q2, making it the year’s biggest quarter thus far. Similar to Q3 2023, this success was primarily driven by two significant transactions: MNT-Halan’s $157.5 million funding round and d.light’s $176 million multi-currency securitisation facility.
44 companies raised $1 million or more in Q3, which is an uptick over the four-year low in Q2. This number is still lower than the 2023 quarterly average of 55, though. Total financing thus far this year is $1.4 billion, a 38% decrease from the same period in 2023 but a positive comparison to pre-2020 levels. In spite of this, the number of startups funding $1 million or more has only decreased by 6% annually, remaining largely unchanged.
For African entrepreneurs, the funding patterns and developments of 2024 paint a complex picture that includes both opportunities and difficulties. As seen by the significant reliance on debt financing—which made up 68% of November’s funding—startups are increasingly figuring out how to get money without reducing their equity. With this strategy, entrepreneurs may be able to maintain more control over their companies while still having access to the resources required for expansion and development.
The unequal distribution of funding throughout the continent, however, highlights the difficulties in obtaining capital for businesses outside of well-known hotspots like Kenya and Nigeria. Unlocking the full potential of African startups may depend on addressing this inequality through a more sectorally and geographically diverse investment approach.
African entrepreneurs are taking advantage of the growing interest in important markets and industries by demonstrating exceptional resilience and adaptability. These developments demonstrate the resilience and promise of Africa’s startup ecosystem in a changing funding landscape, albeit persistent obstacles. However, addressing regional inequities, diversifying funding options, and bolstering investor trust are critical to the ecosystem’s long-term survival.
