African startups raised over $5b in 2022 with various rounds that sprung up during the first half of the year followed by a sharp drop in the last months that concluded 2022.

In January 2023, 31 African startups raised $100m in funding which is quite a significant drop when compared to January 2022 when over $400m was raised by 44 startups.

Could this be an indication that African startups may have a tough time in terms of funding in 2023? Well, we never can tell as there are still many months to tell just how well African startups will fare.

In January, West Africa leads with the total number of startups that raised funds as 13 startups raised $22.1 million, followed by 9 startups from Eastern Africa raising $45 million and 5 startups from Northern Africa, raising $4.3 million with 4 startups from Southern Africa raising $36 million.

In all, five startups raised undisclosed funding with Southe African gaming startup platform, Carry1st leading with the highest funding round of $27 million.

READ ALSO - A Summary of Africa's Fundraising in 2022

The leading sector that received the most funding in January was Agritech, which projects a positive outlook for the sector in 2023.

Startup Funding in January 2023

West Africa

13 startups in West Africa raised $22.1 million with Nigeria leading with 12 of the total 13 startups. Nigerian Boundless Pay raised an undisclosed round while Ghanaian Logistics startup Jetstream secured the highest in the region with its $13 million funding round.

Other funding rounds include Waza -$1.2m, ShekelMobility - $1.95m, Husk Power - $750k, Pakam - $635k, Trade Lenda - $520k, and Releaf - $3.3m. Catalyst Fund invested $800k in Nigeria’s Eight Medical, Farmz2U and Paddy Cover as well as Senegalese Assuraf.

East Africa

9 startups in East Africa raised $45.1 million with Ethiopia leading with total funding of $21 million from Samanu, which was followed closely by Madagascan Solar startup, Welight which raised $20.5m.

Other funding includes Kenyan fintech, Kwara - $3m while Zuri Health, Gebeya and Teraki announced undisclosed funding. Catalyst Fund also invested $600k in Kenya’s Farm2feed, Octavia Carbon, and Uganda’s Agro Supply in East Africa.

North Africa

5 startups raised a total of $4.3 million with Egypt leading with total funding of $3m from clean tech platform, Karmsolar while Moroccan Cathedis secured $735,000.

Catalyst Fund also invested $600k in Egypt’s Bekia and VAIS as well as Morocco’s Sandtogreen.

South Africa

4 startups from Southern Africa raised a total of $36 million, with South Africa leading with its gaming platform, Carry1st after its $27 million funding round.

Proptech startup Flow raised $4.5m, while Nambu an agritech startup announced undisclosed funding.

All 4 startups are from South Africa.

We return in March for a Summary of Funding in February 2023.