In 2022, African startups reached a milestone of over $5b in their fundraising journey, with a decline in VC funding towards the end of the year.
Unlike January 2022 which saw over $400m raised by 44 startups, January 2023 recorded 31 startups secured over $100m. Is this an indication of another run of drop in VC funding? The rest of the 11 months will determine that.
January’s fundraising saw 5 startups secure funds from the North African region, and 4 startups from the South African region, while the West and East regions of the continent shared 13 and 9 respectively.
Out of the 33 startups, 5 announced undisclosed funding with South Africa’s gaming startup Carry1st securing $27m, the biggest financing disclosed for African Startups in January 2023.
Kenya, South Africa, Nigeria and Egypt continue to dominate their respective region with agtech startups taking over the scene for the month of January.
Here is a look at the fundraising by region
North Africa
A total of $4.3 million was raised in this region from 5 startups. Egypt’s clean tech Karmsolar secured $3m and Cathedis a Moroccan-based logistics startup received $735k.
Catalyst Fund invested $600k in Egypt’s Bekia and VAIS as well as Morocco’s Sandtogreen.
Three of these five Northern startups are Egyptian and this might be an early indicator that Egypt is ready for another roller coaster year of investment rounds in North Africa as it did in 2022.
South Africa
Startups from the Southern African region secured a total of $36 million, with South Africa’s taking a large chunk of the region’s investment for January as the gaming startup raised $27m.
Proptech startup Flow and E-commerce platform both raised $4.5m each, while Nambu an agtech startup announced undisclosed funding.
All 4 startups are South African, and this is yet another indication of South Africa’s dominance in that region for 2023.
East Africa
9 East African startups raised $45.1 million in funding. Ethiopia’s Samanu raised $21m, followed closely by Solar startup Welight from Madagascar with $20.5m.
Kenyan fintech, Kwara received $3m while Zuri Health, Gebeya and Teraki announced undisclosed funding.
Catalyst Fund invested $600k in Kenya’s Farm2feed, Octavia Carbon, and Uganda’s Agro Supply.
Kenya slightly edges Ethiopia by the number of startups. Is Ethiopia ready to dominate East Africa in 2023? We wait and see what the rest of the 11 months will bring.
West Africa
13 startups in this region secured up to $22.1m, excluding undisclosed funding rounds from Nigeria’s Boundless Pay, while Ghanaian Logistics startup Jetsream secured the highest in the region ($13m).
Waza ($1.2m), ShekelMobility ($1.95m), Husk Power ($750k), Pakam ($635k), Trade Lenda ($520k), Releaf ($3.3m). Catalyst Fund invested $800k in Nigeria’s Eight Medical, Farmz2U and Paddy Cover as well as Senegalese Assuraf.
Twelve out of the 13 are Nigerian and this is confirmed another dominating fundraising journey for Nigeria in the Western region.
More agtech than any other verticals have raised funding in this region.
Watch out for this space to get a round-up of fundraising by African startups for February.
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