Nigeria gets $ 5 million as African startups raise $ 77 million in January

STARTUPS in Africa raised over $ 77 million in funding in the first month of the year.

According to the ‘ Africa: The Big Deal’ report, which disclosed this, it identified 38 over $ 100, 000 deals worth a combined $ 77 million, making January 2024 the second- lowest month in terms of fundraising announced since early 2021 ( only March 2023 recorded lower numbers).

The report noted that three 8- digit deals ( or just about) made up 38 per cent of the amount raised on the continent last month. These are Yodawy ( healthtech, Egypt, $ 10 million), Apollo Agriculture ( agritech, Kenya, $ 10 million), and Hatch Africa ( agritech, pan- African, $ 9.5 million).

It disclosed that equity represented 74 per cent of the funding announced, with the rest ( 26 per cent) raised as debt ($ 20 million in total through five transactions including Hatch Africa’s and $ 7 million to Sun King). The report said there was only one public exit: Egyptian edtech Orcas’ acquisition by Baim, for an undisclosed amount.

Further, the report noted that the three sectors that attracted the most funding were Agriculture & Food ($ 24 million through five deals, inc. Apollo Agriculture and Hatch Africa), Healthcare ($ 14 million through four deals inc. Yodawy) and Fintech ($ 13 million), though Fintech represented the largest number of deals ( 10).

Climate Tech- related deals ( across various sectors) amounted to 21 per cent of the total raised ($ 16 million), a lower share if compared to 2023 overall.

While the same number of over $ 100, 000 deals were announced in Egypt, Kenya and Nigeria ( eight each), the report observed that from an amount point of view, Egypt and Kenya were clearly in the lead, with $ 24 million raised each ( 72 per cent of the total raised that can be tagged to a specific country ( i. e. excluding Hatch Africa)). South Africa came third ($ 7 million through three deals) and Nigeria fourth ($ 5 million).

It said combined, 90 per cent of the funding went to the Big Four, where 75 per cent of all deals were announced.