While some African startups are still able to raise mega-rounds of funding from VCs and angels, a significant number of startups on the continent haven’t been so fortunate with getting their own pie.
This isn’t just relatable to Africa, as VC funding dropped globally. A TechCrunch report in July showed that founders are keen to get cash, but VCs appear to be slow in deploying capital.
The drop in VC funding was evident in the month of June as 42 African startups raised $152.8 million compared to May which saw 38 startups raise $255.2 million.
In the month of July, 27 African Startups raised $444.48 million. This figure excludes the $298 million raised by South Africa’s Metro Fibre Network from Standard Chartered Bank.
North Africa produced 7 startups, 5 startups raised funding from the Southern region, East Africa had 3 while the West African region saw 12 startups secure funding.
Out of the 27 startups, 5 announced undisclosed amounts, with South Africa’s H20 Securities (solving water scarcity through blockchain) raising $150 million through sales of its token. This is in contrast to June which saw $30 million as the highest Compared to June which saw Ghanaian health tech, Fido secured $30 million.
Nigeria, Egypt and South Africa continue to dominate their respective region. As usual, fintech continues to raise the most funding on the African continent.
Here is a look at the fundraising by region:
West Africa
A total of $123.48 million was raised in this region, excluding undisclosed funding from Ghanaian e-mobility startup, Solar Taxi and Senegalese fintech, Monetic Group. Senegalese Wave secured the highest funding in West Africa ($91.5m)
Out of the 12 startups that raised funds in this region, 8 are Nigerian. Winich ($790k), CreditCheck ($240k), Zazuu ($2m), Swipe ($500k), Moove ($20m), Scorefam ($25m), Ubenwa ($2.5m), Evolutics ($250k), and Ivory Coast fintech, Bizao raised $8.2m.
Nigeria once again continues to dominate the West African startup scene in terms of a number of fundraisers but not in the amount of funding. Nigeria’s 8 startups raised only 58.6% of West Africa’s total funding.
North Africa
7 startups in this region secured up to $2145 million, with 3 out of these startups being Egyptian, 2 from Morocco, while Sudan and Tunisia had one each.
Egypt’s Stllr Network and Tunisia’s Paymee secured undisclosed funding. Others include Aza Petrosolutions ($250k), Cartona ($12m), Bloom ($6.5m), The Fashion Kingdom ($2.6m) and Smartprof ($50k)
From January to June, Egypt has dominated North Africa’s fundraising scene and July isn’t different following an 86.4% of the month’s total funding.
South Africa
All 5 in this region are South African, raising 100% of the funding. Digsconnect securing an undisclosed amount.
H2O Securities previously mentioned ($150m), Michanic ($400k), Qwili ($1.2m), and Cassava ($50m).
East Africa
Unlike June which had 10 startups raised $37m, July saw only 3 startups. Crossboundary ($40m), Solar Panda ($8m), and D.light ($50m).
The 3 startups secured $98 million, with no undisclosed funding recorded.
There was no Central African entrant in the month of July.
The first half of 2022 saw African startups raised $2.01 billion. We wait and see what the other half will present.
Watch out for this space to get a round-up of fundraising by African startups for August.
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