A fresh report has revealed that funding for startups in Africa reduced by 32 percent from January to November 2024 when compared to the equivalent period in 2023.
The report was obtained from data released by a data insight firm, Africa: The Big Deal.
The Big Deal is a data insight firm that tracks funding of $100,000 and above across the continent and beyond.
According to the report, startups in Africa raised $1.9 billion between January and November 2024, which falls short of the $2.8 billion realised in the same period of 2023.
African startups raised $4.3 billion in the same period in 2022, which forms the highest amount since 2021.
However, the data-driven firm stated that in 2021, startups raised $3.9 billion in the eleven months being reported.
It added that in November 2024, 32 startups in Africa announced a total of $180 million in funding, which is a combination of grants, debt and equity.
The Big Deal further pointed out that the funding distribution included $122 million in debt (68 percent), $55.5 million in equity (31 percent), and $2.5 million in grants (1 percent).
The report further revealed that Sun King’s debt funding of $80million from the IFC was the largest announcement, making 44 percent of the total
According to The Big Deal, there were three other eight-digit deals in November, including Kenya-based ISP Mawingu, which raised $15 million in debt and equity to finance its expansion into East Africa, and Ivorian fintech Djamo, which raised a $13 million Series B.
Of all the funding, Nigeria and Kenya got 76 percent, according to the firm.
It disclosed that African start-ups raise (except exits) have been spread between equity of $1.2 billion (64 percent), debt of $635 million (34 percent), and grants of $33 million (2 percent).
The Big Deal data indicated that in Q3 2024, African startups raised over $600 million, more than double the amount secured in Q2.
According to the data, the Q3 2023 feat made it the best quarter of 2024 so far.
When compared to Q3 2023, two major deals largely drove this: d.light’s $176 million securitisation multi-currency facility and MNT-Halan’s $157.5 million funding round, the data submitted.