32 African startups raised $180m in November as 2024 venture funding hits $1.86bn

Venture funding into Africa witnessed a slump in November 2024 as startups on the continent were able to raise $180 million during the month. This is according to a report by African venture funding analytics company, Africa the Big Deal.

The $180 million raised in November represents a 29.1 per cent decline from the $254 million raised by startups on the continent in the previous month. The disparity is also portrayed in the number of startups that raised funding in the two months as 32 startups were responsible for November’s numbers against 42 in October.

Despite this slump, the November total still trumps the $138 million raised in September by 23.3 per cent. Compared to August when African startups raised only $56 million, the disparity is a whopping 68.9 per cent.

September venture funding powered by debts as Nigeria and Kenya lead

Per the total Africa venture funding in November, $122 million representing 68 per cent of the $180 million raised came in the form of debt financing. This was, of course, led by Nigerian solar energy company, Sun King which raised $80 million in debt financing led by IFC per the report. Sun King’s raise accounted for 44 per cent of the total. 

$55.5 million, representing 31 per cent of the $180 million raised in November went to equity venture funding while $2.5 million representing 1 per cent of the total was in the form of grants.

Aside from Sun King, other African startups were able to raise $10 million or above in the month of November. One of them is Kenya-based internet service provider (ISP), Mawingu, which raised $15m in debt and equity to finance its expansion into East Africa. The investment comprised $4 million in equity funding powered by InfraCo Africa and Dutch Entrepreneurial Development Bank FMO, and $11 million in long-term senior debt from the Africa Go Green Fund (AGG).

Another startup that raised over $10 million is the Ivorian financial technology startup, Djamo which raised $13 million in a Series B round to drive its regional expansion. The round was powered by Enza Capital, Oikocredit, Partech Africa, Janngo Capital, Axian, Launch Africa, P1 Ventures, and Y Combinator. 

The report noted that Djamo’s raise was only the 7th Series B venture funding round to be announced so far in 2024. This is half of the total 14 Series B funding that were announced last year). 

Country-wise, Nigeria and Kenya once again showed their dominance in the African venture funding space with both countries responsible for 76 per cent of the $180 million raised on the continent last month. This shows the Nigerian market is responding to a recent report that revealed how much funding into startups in the space has declined in recent months.

Aside from debts, equity and grants, the African startup space also witnessed two acquisitions and mergers. in November 2024. First is the Egyptian ‘contech’ Elmawkaa which was acquired by Saudi proptech Ayen. The second saw SteamaCo and Shyft Power Solutions merge. 

African startups have raised $1.86 billion so far

As the year hurtles towards its end, African startups have raised $1.86 billion as of November 2024. Of the $1.86 billion venture funding so far,  $1.2 billion, representing 64 per cent came in the form of equity. $635 million, representing 34 per cent came in the form of debts, while $33 million representing 2 per cent came in the form of grants.

With a month left in the year, it has become highly unlikely that this year’s funding will get anywhere close to the $2.9 billion that was raised in 2023. However, one can only hope it hits the $2 billion mark which might prove a tall ask as well, as companies tend to wind down operations for the year and take stock. 

So far in 2024, 425  African startups have already raised $100,000 or more.

See also: African startups raised $254m in October 2024 led by Moniepoint’s unicorn-making raise