121 African Tech Startups Garner $466M in Funding During Q1 2024, with Nigeria's Moove
Apr 11, 2024
Enrich Africa
3 minute(s) Read
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During the initial quarter of 2024, African tech startups amassed a total of $466 million in investments, as per the insights provided by Africa: The Big Deal. Although this sum is commendable, it is a 47% reduction from the nearly $900 million garnered during the same timeframe in 2023.

Notably, the number of African tech startups that secured over $1 million each in Q1 2024 exceeded those in Q1 2023.

In this quarter, the lion’s share of the capital raised was through equity funding, which amounted to $332 million, representing 71% of the overall funding. This indicates a 9% decrease from the previous quarter and a significant 47% drop year-over-year.

Conversely, debt financing contributed $132 million, equating to 28% of the aggregate funding. This sector experienced a 44% decline from the last quarter and a 46% decrease compared to the previous year.

Leading the funding race among African tech startups, Nigeria’s Moove accounted for 24% of the total capital raised. The mobility startup stood out this quarter, securing $100 million in equity funding spearheaded by Uber, along with an additional $10 million in debt financing from Stride Ventures, thus claiming a substantial 24% of the quarter’s total funding.

Moove’s co-founders; Jide Odunsi (L) and Ladi Delano (R)

With plans to expand into the UAE, Moove, a mobility fintech, fortified its position with a new $30 million investment fund. The funding round, which nudged Moove towards unicorn status with a valuation of $750 million, also received support from Mubadala, the sovereign wealth fund leading the company’s prior round. Other investors included The Latest Ventures based in Dubai, AfricInvest, Palm Drive Capital, Triatlum Advisors, and Future Africa.

Following Moove, the Kenyan transport and logistics startup Roam secured the second-highest funding on the continent with a $24 million raise, split between $14 million in equity and $10 million in debt financing. The Kenyan health technology firm HewaTele garnered the third-highest funding with a $20 million investment, equally divided between equity and debt.

READ ALSO - African Tech Startups Experience Further Funding Decline in Q1 2024

Overall, Nigerian startups led the funding influx on the continent for the quarter, responsible for $160 million, which is an impressive 35% of the total funding. Kenya came in second with $108 million, accounting for 24%, followed by South Africa with $72 million (16%), and Egypt with $53 million (12%). Collectively, the Big Four of the African tech startup ecosystem represented 87% of the total funding.

Source: Africa: The Big Deal

A total of 121 African tech startups raised $466 million in Q1 2024, with Nigeria’s Moove at the forefront. Other African nations that drew over $5 million in funding during Q1 2024 included Uganda ($16 million), Ghana ($10 million), Tanzania ($9 million), and Morocco ($7 million).

The transport and logistics sector stood out as the most funded industry, attracting 32% of the total capital. Fintech came next with 23%, while agriculture and food, as well as the energy sector, each drew 11%. Health tech received the least funding, with 10%.

In terms of founder demographics, male-led tech startups maintained their lead, with 99% of the funding going to startups with at least one male founder. Startups with at least one female founder received 15% of the funding.

Apr 11, 2024
Enrich Africa
3 minute(s) Read
Jide Odunsi
Ladi Delano

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