African startups have surpassed $1 billion in investments in the first half of 2024, reaching $1.1 billion. This increase marks a rebound from $1 billion raised in the same period last year.
However, it still lags behind the $1.5 billion and $1.8 billion raised in the second half and first half of 2022, respectively.
Despite a global funding crunch, this growth highlights the resilience of Africa’s startup ecosystem. Wee Tracker reports that $1.67 billion was committed to African startups in H1 2024, which indicates investor confidence.
Major Funds and Investments
Adenia Partners led the investment surge with its $470 million Adenia Africa Fund. Key backers include Norfund AS, the US International Development Finance Corp., and Canada’s Findev Inc. The fund supports fintech, telecom, and healthcare startups.
Other significant funds include XSML Capital’s $98.7 million African Rivers Fund IV, targeting Central and Eastern Africa, and Glint’s $3 million Glint Fund II, focused on Egypt.
Partech’s Africa II fund, closed at over $300 million, plans to invest in Seed to Series C rounds across the continent.
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Notable Acquisitions
Acquisitions have also played a crucial role in the ecosystem’s growth. Lesaka, a leading fintech firm, acquired Adumo for $85.9 million. This move comes three years after Adumo’s acquisition of SwitchPay in 2021, showcasing Lesaka’s expansion strategy.
Level Africa strengthened its position by acquiring Utilis Ventures in Uganda. This acquisition included rebranding Utilis Ventures to Level Africa Uganda Limited, enhancing local expertise.
Kenyan travel booking platform BuuPass expanded by acquiring QuickBus in Nigeria and South Africa. This acquisition aims to leverage QuickBus’ partnerships with banks and telcos, offering more travel booking options.
Strategic mergers and acquisitions suggest a promising future for Africa’s entrepreneurial landscape. Investors are increasingly recognizing Africa’s unique opportunities, paving the way for sustained growth and innovation in the coming years.