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African startups scored $187 million in funding in May


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

Money pouring on someone's hand like rain. Used to depict a naira float, following the country's announcement

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.





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