Browsing: Startup financing in Africa

startups in Africa
  • Startups in Africa have attracted over $1.2 billion in financing this year.
  • Experts note that debt financing for startups in Africa is increasingly taking centre stage.
  • In July, startups d.light, Va1U, Terrapay as well as Cartona all settled on debt financing to boost operations.

Startups in Africa have defied the odds in declining global capital flow, attracting a record $420 million in financing in July. This funding, which excludes exits, takes to $1.2 billion the amount of money channeled to startups in Africa this year and is the highest on record in 14 months.

“The numbers were heavily skewed by the two mega deals that were announced during the month: d.light’s $176 million securitisation facility and MNT-Halan’s $157.5 million raise. NALA’s $40 million Series A also deserves a mention. Combined, these three deals represent 90 percent of the funding raised,” an update by startup funding tracker, Africa: The Big Deal

African startups
  • 121 African startups secured $466M, marking a 27 per cent drop from the previous quarter; women-led startups got 6.5 per cent of the capital.
  • About 87 per cent of startup funding in the three months to March went to entities in Nigeria, Kenya, Egypt, and South Africa.
  • Gender imbalance persists as only 6.5 per cent of the financing went to female-led startups in Africa.

The big four economies of Nigeria, South Africa, Kenya, and Egypt continue to attract the highest share of funding going to startups in Africa, even as the ecosystem suffered a 27 per cent drop in financing to $466 million in the three months to March 2024.

The latest analysis from Africa: The Big Deal shows that 87 per cent of startup funding in the three months to March went to upcoming entities in Nigeria, Kenya, Egypt and South Africa.

Attracting $160 million, Nigeria’s economy accounted for …

Eyewear startup Lapaire | Funding for growth
  • With the funding for growth, Lapaire intends to open 300 eye care centres.
  • Eye care in developing countries like Kenya and many other African states remains underfunded.
  • While it initially began with a B2B sales approach, it has since abandoned that model, favouring direct contact with the customers.

Kenya-based Eyewear Startup Lapaire has secured $3 million (KSh476 million) in private equity funding for growth initiatives across African markets. Following the deal’s closure, Lapaire intends to open 300 eye care centres, targeting 80 new outlets by December 2024.

Impact investment fund Investisseurs & Partenaires (I&P) led the equity round with AAIC, FINCA Ventures, and Beyond Capital pitching in. Cross-Boundary provided advisory support for the deal through USAID’s Africa Trade and Investment activity.

“Over the last few years, we worked hard to build a highly scalable model and we are now in the best position to accelerate our growth to positively impact …