Fintechs rule: Moniepoint, Tyme, others raised 47% of $2.2bn African startup funding in 2024

Fintech continues to be the most preferred for venture capitalists as the sector attracted $1.026 billion in funding in 2024. This number represents 47% of the total $2.2 billion, according to data by African startup venture funding analytics company, Africa the Big Deal.

According to it, fintech’s share of the total is an improvement from the 42% share of the total that the sector commanded in 2023. Indeed, this year’s share is the highest the sector has enjoyed since after the pandemic (2021).

This is quite interesting considering that as at the end of the first half of 2024, the sector had contributed only 22% of the total funding, lagging way behind climate tech.

“If you remember though, it wasn’t always so obvious Fintech would come out on top in 2024: indeed, in the first half of the year, fintech wasn’t even the top sector in terms of fundraising and ‘only’ represented 22% of the total raised. However, the second half of the H2 brought a lot of fintech deals though (including Tyme’s of course), which put the sector back on top,” the report reads.

See also: Climate tech edges fintech, attracts 45% of Africa startup funding in 2024 so far

Fintech’s new unicorns, Moniepoint and Tyme behind a successful year

Two new unicorns were minted in Africa last year. It is not surprising that both were financial technology companies, seeing as seven of the continent’s nine unicorns are from the sector.

Both mega-funding rounds also came in the much later part of the year to thrust the sector onto the top of the funding food chain. Indeed, four of Africa’s ten largest startup funding rounds in 2024 were into fintech companies.

In July, Egypt’s MNT-Halan announced a $157.5 million raise. The raise featured contributions of $40 million from the International Finance Corporation (IFC), with the remaining funds supplied by Development Partners International (DPI), Lorax Capital Partners, funds managed by Apis Partners LLP, Lunate, and GB Corp.

The new capital influx is expected to power the Egyptian unicorn’s imminent geographical expansion.

In October, Moniepoint, regarded as Africa’s fastest-growing financial institution raised a $110 million series C equity financing round. The investment also meant that the fintech surpassed its $400 million valuation and attained unicorn status.

In December, Tyme Bank became Africa’s 10th unicorn when it raised $250 million in a Series D funding round. The digital bank controlled by South African billionaire, Patrice Motsepe, saw its valuation rise to $1.5 billion following the capital raise which includes a $150 million investment from Latin America’s most valuable financial company, Nu Holding.

Climate tech witnessed a decline in 2024

Climate tech is the fastest-growing sector in Africa and has indeed found itself competing quite favourably with the financial technology space. Its sub-sector, clean energy is the next best investment sector for venture funders, with startups operating in the space raising $440 million.

This represents 20% of the total venture funding raised in Africa in 2024.

Startups from the sector that recorded impressive funding include d.light’s $176 million securitization facility in July, SunCulture’s oversubscribed $27.5 million series B funding round, and Sun King’s $87 million securitization with Citi to broaden access to finance for off-grid solar in Kenya.

This makes East Africa and Kenya in particular, the headquarters of clean energy and climate investment in Africa.

Another climate tech sub-sector, the e-mobility sector retained its spot as the third preferred sector for funding, recording a total funding of $288 million.

This makes it probably the only sector that witnessed improved funding compared to 2023 when it raised $271 million, representing a 6% year-over-year increase. The $288 million raised by startups in this sector also means its share of total venture funding into the continent rose to 13% in 2024, up from just 9% in 2023.

Indeed, three of the ten top African startups that raised funding in 2024 belong in this sector. They include: Moove which raised $110 million in equity funding and debt financing led by Uber and Stride Ventures; Spiro which raised a significant $50 million debt facility with the African Export-Import Bank (Afreximbank) back in May and Basigo’s $44.5m series A funding targeted at delivering 1,000 e-buses across East Africa over the next three years.

These three companies attracted 75% of the sector’s total funding in 2024.

Both the clean energy and e-mobility investments comprise the broader climate-related investments. Looking at them through that climate-tech lens, they account for 32% of the total invested in start-ups in Africa in 2024.

This is less than the 36% share recorded in 2023 (36%) a drop is attributed to the drop in funding going to the energy sector.

In all, 80% of the total $2.2 billion venture funding invested in African startups in 2024 was raised by startups in those top 3 sectors.

All the other sectors suffered a loss in absolute and relative terms in 2024, with the agritech and health-tech sectors suffering 44% and 61% declines respectively.