In 2021, The Big Deal Report indicated that African startups have secured funding 2.5 times than what was raised in 2020. With over 800 deals worth over $100k totalling $4.27 billion.
The year 2022 has begun with another interesting fundraising journey for African startups. More than $400 million have been raised by 44 startups with 34 deals in the month of January.
January’s fundraising saw 11 startups secure funds from the North African region, 10 startups from the South African region, while the West and East region of the continent shared 15 and 8 respectively.
Also read, African Startups Funding Journey in 2021
Out of the 44 startups, 11 announced undisclosed funding with Tunisia’s Enterprise AI Instadeep securing $100m, the biggest disclosed funding for African Startups in January 2022.
Kenya, South Africa, Nigeria and Egypt continue to dominate their respective region with fintech and e-commerce taking over the scene for the month of January.
Here is a look at the fundraising by region
A total of $107 million was raised in this region excluding, undisclosed funding from 5 Egyptian startups OBM Foundation, Super FNY, Crafty Workshop, 3atter, and SplendApp as well as Morocco’s Chari bridge funding.
Notable funding include Tunisia’s Instadeep ($100m), Egypt’s Brimore ($2.5m), Orcas ($2.1m) and Tawfeer ($500k)
In the Northern region, edtech and e-commerce platforms raised the most funding. Fintechs have raised the most funding overall in 2021, however, no fintech startup in North Africa raised funding.
This isn’t an indication as this is just the beginning of the year, as we move over to February, it is almost expected that fintech startups might take over the edtech and e-commerce platforms for the highest number of fundraising and deals.
Egypt continues to dominate the North African startup scene.
Startups from the Southern African region secured a total of $56.7 million with the exception of undisclosed funding from Wamly.
Fintech platform Finclusion and gaming startup Carry1st each secured $20 million as the highest deals.
Others include Jabu ($3.2m), Health Leap ($1.1m), Orderin ($4.5m), Floatpays ($4m), Tallorder ($3m) and Comparisure ( $980k)
Unlike North Africa, which saw the domination of edtech and e-commerce startups in January’s fundraising, South African startups saw a spread in verticals ranging from health, fintech, conversational commerce.
South Africa produced eight out of the nine startups in the Southern region. E-commerce startup Jabu from Namibia is the only non-SA startup.
What has happened to other startups in this region for the month of January? South Africa has always been in the spotlight in the southern African startup scene, however, other countries in the region should likewise step up their game.
East African startups raised $139 million in funding with Kenyan E-commerce startup Copia raking up $50 million, followed by Ugandan startup Asaak ($30m) and another Kenyan startup, POA ($28m).
This total amount excludes Undisclosed Series B funding from Mr Green Africa, a Kenyan recycling startup.
Other fundraising includes Alvin ($740k), Lipa Later ($12m), Zanifu ($4.5m), Sote ($4m), Nala ($10m).
Seven out of these startups are Kenyan, with Uganda and Tanzania having one each.
In this region, Rwanda is known for its innovation, however, the month of January hasn’t been busy for Rwandan tech startups.
15 startups in this region secured up to $97m, excluding undisclosed funding rounds from Nigeria’s Pivo and Mustard with Benin Republic’s Fedapay.
Ghana’s mPharma secured $35m, with another Ghanaian startup, Float closing in $17m. Close by are Nigeria’s Bamboo ($15m) and Seamless HR ($10m).
Others include, Bfree ($1.7m), ThankUCash ($3.5m), Afrikrea ($6.2m), Orda ($1.1m), Frain ($374k), Paps ($4.5m), OZÉ ($3m), Vesti Technologies ($500k).
More fintech than any other verticals have raised funding in this region. Ivory Coast, Senegal and the Benin Republic have commenced 2022 with their respective startups making January’s funding round.
Nine Nigerian startups from the 15 in West Africa is an indication that the country continues to lead the region in startup fundraising rounds.
Watch out for this space to get a round up of fundraising by African startups for February.
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