Funding for Africa’s start-ups in May hit $645 million, a report by The Big Deal– a startup-oriented database has established.
According to the report, the capital reported for the period under review was the highest-ever figure raised in May in the history of Africa’s start-up ecosystem.
Kenyan energy start-up, M-Kopa, emerged as the highest fundraiser for the month after a successful round that saw it raise $250 million in equity and debt.
Sun King, a solar energy company, came in second having secured a total of $150 million in funding, while South Africa’s Tyme Bank took the third spot with $77.8 million.
The resurgence came against the backdrop of two slow months of March and April in terms of start-up funding since the remarkable $700 million capital raised in February.
Start-ups in the continent raised $70 million in March and thereafter saw a slight improvement in April to raise 129.8 million dollars.
The future of Start-ups Funding in Africa
Despite the resurgence, The Big Deal warns that the future of Africa’s startup ecosystem is still uncertain citing the slump experienced after February.
“Now, is it the light at the end of the tunnel? As always, it’s hard to say. While the numbers are certainly encouraging, they could also give false hope, as we experienced in February,” Max Cuvellier, founder of The Big Deal started.
The report came at a time when African start-ups continued to attract interest from multinational investors as evident in the several partnerships signed.
Orange Middle East and Africa, for instance, signed a partnership with Digital Africa, a Pan-African fund targeting start-ups, in a deal designed to offer funding opportunities for players in the African ecosystem.
In addition, mobile payment platform, Visa, announced an initiative named Africa Fintech Accelerator in a move expected to offer growth opportunities for fintech start-ups in the continent.
A report by Disrupt Africa, showed African tech startups raised $650 million in the first quarter of 2023.