Mobility startups lead the way as funding to African tech startups falls 62% YoY in Q1 2024 

African mobility startups attracted probably the most funding in Q1 2024, as whole funding fell by 62% year-on-year.

After a poor exhibiting that noticed African startups increase $2.2 billion in 2023, the consensus amongst many founders and buyers was that little or no would change within the first few months of 2024.

Knowledge from Intelpoint helps that prediction, as startups solely raised $329.5 million throughout 51 offers in Q1 2024. On the identical stage final 12 months, startups in Africa had raised $873.9 million, though a lot of it was pushed by MNT-Halan”s $400 million increase in February.

Though funding stays low, there was regular month-on-month development. With $70.7 million raised in January, there was a slight dip to $67.8 million in February, with the numbers rising once more in March to $190 million.

Moove raised $100 million in March, however even excluding that, funding would have been $90.8 million in March.

Mobility and fintech cleared the path  

Mobility startups raised probably the most funding in Q1 2024. Moove led the way in which with a $100 million Collection B spherical led by Uber in March. Bloomberg had earlier reported that Uber was in talks to guide the startup’s Collection B.

Moove permits ride-hailing drivers to acquire autos with out paying upfront, and Uber’s funding was the end result of a partnership that started in 2020. Moove’s mannequin has come below hearth in Nigeria as drivers complained in regards to the compensation plan, which was made worse by rising operational prices.

Other than Moove, Planet42 raised $16 million from Customary Financial institution, and Ampersand raised $12 million in January bringing the quantity raised by mobility startups to $178.6 million.

Funding to fintechs has remained low, with solely $38 million raised throughout three months.

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Whereas sharing her expectations for 2024, Maelis Carraro, Managing Accomplice of Catalyst Fund, acknowledged that she anticipated funding for local weather tech startups to proceed as extra buyers raised funds to spend money on local weather options on the continent.

Whereas solely a handful of local weather tech startups have raised any cash in 2024, the sector was the third-most funded in Q1.

Funding locations and kinds stay unchanged   

There have been no surprises round funding vacation spot, with the standard culprits — Nigeria, Egypt, South Africa, and Kenya — taking dwelling 82% of the funding.

Fairness funding stays a serious supply of funding for startups on the continent at 87.8%, with debt making up 11.6% of the funding. Lower than $2 million was raised in grants.  

Later levels grew 

A lot of the funding exercise in Q1 occurred on the later levels, though undisclosed funding rounds accounted for almost all of the funding ($140.5 million) on this interval.

Moove’s $100 million Collection B was the one Collection B spherical recorded, however Collection A startups raised $48 million.

Additional down the funnel, seed rounds totalled $30.7 million, pre-Collection A rounds totalled $6.7 million, and pre-seed funding was a meagre $3.6 million.


Conversations round exit alternatives have turn into extra frequent within the final 12 months as buyers search returns. Though curiosity in African startups stays, most buyers argue that exits are essential to strengthen the case for investing in African startups.

Secondaries are a fantastic alternative for early-stage buyers, however with IPOs an unlikely possibility, acquisitions present a chance for buyers to recoup their investments.

There’s nonetheless a slight drawback, although. Most acquisitions stay undisclosed, fueling hypothesis that they could have yielded little monetary returns.

Notable acquisitions embody:

Extra Africa-focused funds have been launched   

Extra funding is critical to scale back the impact of the funding drought, and a number of other Africa-focused corporations have launched or closed new funds.

The biggest by a mile was Partech’s. The agency hit the second shut of a $300 million fund that’s the largest focused at African startups. It’ll make investments from the seed to the early development levels.

Satgana raised $8.6 million to spend money on local weather tech startups throughout Africa and Europe. It had initially deliberate to lift $32.4 million however fell brief, an indication of the difficulties first-time fund managers presently face in elevating capital.

Former Andela co-founder Iyinoluwa Aboyeji introduced the launch of Speed up Africa, an accelerator backed by a grant from america Company for Worldwide Improvement (USAID). Aboyeji, who already runs Future Africa, hopes to fill the footwear left by Y Combinator’s choice to reduce on its actions on the continent.

P1 Ventures additionally hit the second shut of its $35 million fund and plans to increase its operations to Senegal and Kenya. Different buyers that launched embody BimaLab Africa Insurtech Accelerator, Sawari Ventures, Injaro, Seedstars, and weVentures.


The funding knowledge used on this article relies on publicly accessible knowledge and solely takes under consideration disclosed funding quantities. Startup sector nomenclatures might differ from what’s obtainable elsewhere.

For instance, although startups like Moove and Planet42 are sometimes called mobility fintechs, we have now categorised them as mobility startups.

Please notice that solely companies which have nearly all of their operations in Africa have been thought of for this report. Which means even when a startup’s founders aren’t African, they’re included if Africa constitutes nearly all of their operations.


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