Fintech Remains the Top Sector for African Startups in 2024
The fintech sector continues to dominate investor interest among African technological startups in 2024, yet it faces a significant decline for the second consecutive year.
This insight comes from the 10th edition of the African Technological Startup Financing Report, released by Disrupt Africa. This report is freely accessible as part of a collaborative initiative with Art of Scale.
Overview of Funding Trends in 2024
A mere 200 startups managed to raise a total of $1.1 billion this year. This represents a dramatic drop of over 100% from the previous year, which saw 406 startups raising more than $2.4 billion in 2023. This downward trend marks the second straight year of decreasing funding in the sector.
Fintech Startups: A Closer Look
In 2024, 51 fintech startups attracted funding, accounting for more than 25% of the total capital raised on the continent. However, the combined funding for these companies fell to nearly $500 million, representing declines of 60% and 40% respectively, compared to last year.
The Broader Startup Landscape
While fintech has seen significant funding cuts, other sectors have not fared any better or have even performed worse. This has resulted in the fintech sector maintaining a similar share of overall financing as in previous years. Notably, mobility stands out with an increase in financing, jumping from 14.4% to $231.8 million, marking its first appearance as the second highest sector.
The Impact of Major Funding Rounds
Significant funding rounds raised by fintech firms such as Moniepoint, Mnt-Halan, Nala, and Yellow Card, along with mobility ventures Moove and Basigo, are crucial to the overall funding landscape. Together, these large rounds account for almost half of the continent’s total financing in 2024. Without these key players, the funding situation would appear significantly worse.
Accessing the Full Report
For a comprehensive look into the current state of African technological startup funding, please download the report or visit Perrupafrica.com/funding-report. For inquiries, contact Gabriella at gabriella@disruptafrica.com or Tom at tom@disruptafrica.com.
About Disrupt Africa
Disrupt Africa serves as a vital source for news, information, and insights regarding Africa’s technological startup ecosystem. With journalists exploring the continent to uncover and interview the most innovative startups, it showcases promising businesses and entrepreneurial ideas. Its research division produces in-depth reports covering various aspects of the African tech scene; further details can be found here.
About Art of Scale
Art of Scale is a reliable partner for founders and CEOs looking to succeed, offering an innovative self-service platform and tailored support services. Whether you need tools for scaling or practical assistance to tackle challenging issues, Art of Scale provides the advice, resources, and expertise necessary for achieving remarkable growth.