In July 2023, African startups raised a total of $123.4 million across 20 disclosed deals, experiencing a significant 46.5% decrease compared to the funds raised in July 2022. Cleantech startups remained dominant, securing 32.8% of the total funding. East Africa led the fundraising with $46.2 million, followed by Central Africa with $40.5 million, West Africa with $26.6 million, and North Africa with $10 million. However, Southern Africa received no disclosed funding.
Key highlights include:
- East Africa: Kasha, a Rwandan health tech startup, secured the highest funding at $21 million, followed by Kenyan startup Mydawa with $20 million. Other startups in the region also raised funds, and Rwanda-based Eden Care joined Y Combinator's summer program with a funding of $500,000.
- Central Africa: DR Congo's cleantech startup Nuru raised a substantial $40 million, the highest amount raised by a single startup in July. DRC-based fintech startup Vaultpay also received $500,000 from Y Combinator.
- West Africa: Nigerian startups led the region, with significant funding secured by Terragon, Moove, Zuvy, and others. Nigerian food-tech startup Chow Central received $500,000 as part of Y Combinator's deal.
- North Africa: Egyptian startups dominated the region, with Egyptian fintech startup Flash raising $6 million, Moroccan prop-tech startup Agenz raising $1.3 million, and Tunisian mobility startup Kaco announcing an undisclosed funding round.
- Funding Sectors/Industries: Cleantech secured 32.4% of the total funding, followed by fintech with $21.7 million, health tech with $20.7 million, and logistics with $21 million.
- Funding Stage: Pre-seed startups led, with Nigerian invoice financing startup Zuvy securing $4.5 million. Flash, an Egyptian fintech startup, raised the highest seed funding at $6 million, and health tech startup MyDawa dominated the series A category with $20 million in financing.
Despite the challenges faced by African startups in 2023, including a decline of 47.69% in funds raised in H1 compared to H1 2022, some regions like East and Central Africa showed promising signs of growth. Cleantech remained a popular investment sector, reflecting increasing interest in sustainable ventures. As the African tech ecosystem evolves, innovative startups must explore alternative funding sources and growth strategies to unlock their potential.
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