In a remarkable achievement, African start-ups raised an astounding $420 million in July 2024, marking the highest monthly fundraising total in over a year. This impressive performance has propelled the total fundraising for African start-ups in 2024 beyond $1.2 billion.
Record-Breaking Fundraising: July 2024 Highlights
July 2024 has proven to be a standout month for African start-ups, with the $420 million raised exceeding the total funds accumulated during the entire second quarter of the year. This monthly figure is 2.5 times higher than the average monthly amount raised over the past year, establishing July 2024 as the most successful month on record since fundraising tracking began in 2019 according to a recent report by Africa: The Big Deal.
Noteworthy Ventures and Mega Deals
A total of 47 ventures secured at least $100,000 in funding during July, making it the second-best month of the year following May, which saw 40 grant announcements from prominent organizations like DEG, CCHub, and iHub. Among these 47 ventures, 16 raised at least $1 million each, aligning with the monthly average for the first half of 2024.
The substantial increase in fundraising can be attributed to several major deals announced in July. Notably, d.light, a leader in solar energy solutions, obtained a new $176 million securitization facility. Meanwhile, MNT-Halan, a microfinance and payment company, secured $157.5 million to support its expansion efforts. Additionally, NALA, a digital payments company, raised $40 million in its Series A funding round. Collectively, these three deals accounted for 90% of the total funding raised in July.
Impact on the African Start-Up Ecosystem
This exceptional monthly performance not only helped the African start-up ecosystem surpass the $1 billion mark in funding for 2024 but also elevated the total to $1.2 billion. This figure surpasses the total amount raised throughout 2020 and brings the ecosystem closer to reaching the $1.4 billion milestone achieved in 2019.
Despite the impressive growth in July, the pace of funding has been relatively slow compared to recent years. Nonetheless, with the momentum gained from this record-breaking month, the goal of surpassing the previous high of $1.4 billion seems increasingly attainable.
Future Outlook for African Start-Ups
The significant increase in funding in July 2024 underscores the growing investor confidence in the African start-up ecosystem. As the year progresses, there is optimism that the momentum will continue, potentially leading to further record-breaking months and continued growth in funding levels.
With a solid foundation built on the success of July, African start-ups are well-positioned to achieve even greater heights in the coming months. The industry’s robust performance highlights the region’s potential as a thriving hub for innovation and investment.
