Amid a slowing down of equity funding into financial technology companies globally, equity funding into African fintech startups declined by 25% in 2024, hitting $600 million. This further buttresses the increasing popularity of debt financing as investors look to make safer bets on startups in Africa.
This was disclosed in the State of Global Fintech Report (2024) released by global startup analytics company, CB Insights. According to it, the $600 million equity funding attracted by fintech startups across the continent falls short of the $800 million in 2023.
Africa’s financial technology space continued to be the most vibrant in the ecosystem last year, accounting for $1.026 billion in funding. This number represents 47% of the $2.2 billion attracted by African startups, according to data from African startup venture funding analytics company, Africa the Big Deal.
On a positive note, the decline is the slowest recorded since 2022 when fintech startups raised $1.1 billion. This represented a 35.3 per cent decline from the $1.7 billion raised in 2021.
While there has been a decline in total equity in recent years, the rate has declined annually. To note, African fintech startups raised $800 million in 2023. This represents a significant 27.2% decline from the 2022 total.

Aside from the funding, the space also witnessed a decline in the total number of deals. According to the report, the $600 million in 2024 was invested across 91 deals. This is down from the 177 deals recorded in 2023 and represents a 48.5% drop.
The total number of deals has seen a consistent decline from 2022 when total deals peaked at 278.
Equity funding decline is a global affair
Equity funding into African startups declined as investors appear to be gunning for debt financing. This is coming amid a funding winter that has impacted the space.
Indeed, 2024 witnessed the lowest equity funding quarter since Q1 2020 as African fintechs attracted $35 million in the second quarter of last year. This represents the lowest quarter since fintech startups attracted just $22 million at the onset of the COVID-19 pandemic in 2020.


Despite this, the space was able to produce two unicorns. One of them, Moniepoint, led the pack for the largest equity deals during the year with its $110 million Series C raise in October. The round witnessed participation by DPI, Google for Startups, Capital Management, Lightrock and Verod Capital.
The decline in equity investments is a global phenomenon. According to the report, equity investments into global fintech companies suffered a 20 per cent year-over-year decline, falling from $41.9 billion in 2023 to $33.7 billion in 2024.
The drop is, however, the smallest in three years as equity investment had dropped from $80.7 billion in 2022 to $41.9 billion in 2023 representing a 48 per cent decline. Before then, it had declined from $143.6 billion in 2021 to $80.7 billion in 2022, representing a 44 per cent drop.
The number of deals also dropped in 2024 with the total number of deals dipping to 3580 from 4331 recorded in 2023. This represents a 17.3 per cent drop. The decline follows a streak of declines as the total number of deals similarly dropped from 6600 to 4331 representing a 34.4 per cent decline.


Quarterly, data shows a bounce back is in the offing as fintech startups finished the year strongly. Equity funding rose from $7.6 billion in the third quarter to $8.5 billion in the fourth, marking an 11.8 per cent rise.
“There are signs that the fintech market is steadying. The annual decline in funding was fintech’s smallest in 3 years. Meanwhile, at the quarterly level, funding rebounded to close the year strong, increasing 11% QoQ to reach $8.5B in Q4’24,” the report noted.
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