Startups across Africa secured $187 million in fresh capital in May, significantly improving from April’s $75 million, according to a report by ‘Africa: The Big Deal,’ which tracks startup funding on the continent. This represents a 149% increase in funding.
The report noted that 64 ventures received at least $100,000 in funding, a significant rise from previous months, with 17 startups raising at least $1 million. On average, 38 startups have secured at least $100,000 each month from January to May.
In May, the funding was distributed as follows: 4% in grants, 31% in equity, and 65% in debt, with total debt funding reaching $122 million. Notable contributions included $51 million by M-KOPA and $50 million by Spiro.
Additionally, May saw three major acquisitions: Lesaka’s $85 million purchase of Adumo, Busbud’s acquisition of Ratality in South Africa, and the high-profile acquisition of Brass by Paystack-led investors for an undisclosed amount.
The report indicated that $729 million has been announced in funding (excluding exits) since the start of the year. Despite the recent surge, this figure remains behind the totals from previous years: $1.7 billion in Q1 2023, $2.7 billion in Q1 2022, and $1.1 billion in Q1 2021.
However, the number of ventures raising at least $1 million in 2024 (90) compares favorably to 2023 (95) and 2021 (91), though it falls short of the 200 ventures in 2022.
In Nigeria, the startup Moove led fundraising in Q1, but May saw a quieter scene with two significant deals totaling less than $7 million: Seamfix’s $4.5 million equity raise from Alitheia IDF, and Renda’s $1.9 million pre-seed round, a mix of equity and debt.
