Përshëndetje,
Victoria from Techpoint here,
Here’s what I’ve got for you today:
- African startups scored $187 million in funding in May
- Pitfalls to avoid when expanding a startup
- Wasoko and MaxAB’s merger to proceed despite delays
- Adia Sowho steps down as MTN Nigeria CMO
African startups scored $187 million in funding in May
In May, African startups hit the jackpot, scoring a whopping $187 million in funding, a jaw-dropping 149% jump from April’s $75 million.
Per a report by ‘Africa: The Big Deal,’ a firm that tracks startup deals on the continent, 64 companies snagged at least $100,000, with 17 startups bagging over $1 million, showing how investors are warming up to African startups.
Breaking it down, 4% came from grants, 31% from equity, and 65% from debt, showcasing the various investment strategies in play.
Notable deals included Kenyan fintech M-KOPA pulling in $51 million and electric vehicle maker Spiro scoring $50 million, proving that diverse sectors are attracting big bucks.
Though the total funding for the year is still shy of previous periods at $729 million, May’s surge hints at the resilience and potential of African startups, drawing global investors’ attention.
Diving into the numbers, the report compared ventures raising at least $1 million in previous years. While 2024 saw a slight dip compared to 2023 and 2021, with 90 ventures in January to May, the data suggests consistent interest and investment in African startups.
Shifting focus, Nigeria’s startup scene had a chill month in May, with just two major deals totalling less than $7 million announced. This quieter activity sheds light on the funding differences across regions and sectors within Africa’s dynamic startup landscape.
Source
techpoint.africa