African startups raised a total of $2.2 billion in 2024, driven by significant investments in Nigeria’s Moniepoint and South Africa’s Tyme Group. This figure, covering equity, debt, and grants, was detailed in a funding report by Africa: The Big Deal.
Despite the impressive sum, it marks a 25% decline from the $2.9 billion raised in 2023. The report showed that 188 ventures raised $1 million or more in 2024, which is 10% fewer than the previous year. There were 22 exits, slightly up from 20 in 2023.
The report attributed the slower performance in 2024 to a weak start, with under $800 million raised in the first half of the year—the slowest since 2020. However, the second half of the year saw a strong rebound, with $1.4 billion raised, marking a 25% year-on-year increase and an 80% rise from the first half. The period’s success was boosted by major deals involving Moniepoint and Tyme Group. These startups became unicorns in quick succession, the first since early 2023.
Debt funding saw a notable decline in 2024, representing 30% of total funding compared to 38% in 2023. Debt funding fell by 40% year-on-year. Equity funding, however, reached $1.5 billion, an 11% decrease from the $1.7 billion raised in 2023 but showing signs of recovery from the steep drop in equity funding the previous year. This indicates growing investor confidence and hints at a more balanced funding landscape.
Moniepoint and Tyme Group emerged as the newest African unicorns. Moniepoint, founded in 2015 by Tosin Eniolorunda and Felix Ike, raised $110 million in October 2024. This was led by Development Partners International’s ADP III fund, with participation from Google. Moniepoint valuation got a push to $1 billion. Tyme Group, backed by Patrice Motsepe, raised $250 million in December 2024, led by Nubank, boosting its valuation to $1.5 billion.
