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

Source: The Guardian

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 percent 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 percent of the funding announced, with the rest (26 percent) 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 percent 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 percent 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 percent of the funding went to the Big Four, where 75 percent of all deals were announced.

THE AUTHOR: Adeyemi Adepetun

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