The second quarter of the year looks promising for African tech. The start-ups are at $430 million in funds raised in April 2022 alone, or 2.5 times the amount obtained over the same period in 2021.
African start-ups have already raised $2.25 billion in the first four months of the year, from January to April 2022, learned the Ecofin Agency, from a recent analysis published by thebigdeal platform. substack.com.
“This is 2.5 times the amount that was raised at the end of April 2021. It is also more than half of the total amount raised in 2021 ($4.4 billion). The $2 billion milestone was reached in 17 weeks, almost twice as fast as in 2021 (30 weeks)”, underlines the data site on the activity of African start-ups.
For the month of April 2022 alone, nearly $430 million in funds were captured by these technology companies, which posted around $140 million raised until the last week of April. With Africa-focused off-grid solar company Sun King’s $260 million Series D, announced in late April, the ecosystem ended up raising a total of around $430 million.
By January 2022, African start-ups had raised $480 million. In February, this amount reached $630 million and $710 million last March.
“If the ecosystem can maintain this momentum, and continue to raise over half a billion dollars per month on average throughout the year, it is on track to raise nearly $7 billion in 2022.” , assure the analysts of thebigdeal.substack.com site.
Recall that in the first quarter of 2022, Nigeria was the first country on the continent in terms of funds raised, i.e. $600 million. It is followed by Kenya, South Africa and Egypt. Already in 2021, Nigeria had attracted the bulk of venture capital deals, by value and volume in Africa.
In terms of industry, fintech once again remains the most investor-funded companies on the continent to date. Moreover, two fintech companies have already carried out mega-transactions of more than $100 million during these first four months. These are the Nigerian Flutterwave and Moove Africa.