Concerns have recently grown about a noticeable slowdown in investor funding across the African startup ecosystem. Nevertheless, the ecosystem hasn’t failed to record noticeable progress despite challenges. This is why we want to review 5 startups in Africa that raised the most money in 2022.
Some stakeholders predicted a funding crunch for African startups in the near future last year. And it’s easy to see why they were concerned: global venture capital funding has been declining monthly, according to Crunchbase. And Africa was not immune to this trend.
Needless to say, this was bad news for an ecosystem that relies heavily on foreign investors for funding.
How African Startups faired in 2022
Despite the ecosystem’s challenges, 2022 was a record year for Africa’s startup scene, with $5.4 billion in venture funding.
This is part of the data collected by Briter Bridges, a market intelligence platform that has been tracking the growth of Africa’s tech ecosystem since 2018.
According to Briter Bridges’ 2022 Africa Investment Report, the total value of investments raised in 2022 surpassed the $5.2 billion raised in 2021, as the total number of transactions increased from 790 to 975.
According to the report, funding for African start-ups has been increasing over the last ten years.
It explained that the 2021 funding surge into the ecosystem lasted well into 2022 before slowing in mid-2022. Startups from four countries accounted for 75% of total funding in 2022. These countries were Nigeria, Kenya, South Africa, and Egypt. It also stated that the 25 largest rounds raised all year accounted for more than half of the total figure.
Which Startups in Africa, then, raised the most money in 2022?
Top 5 startups in Africa that raised the most money in 2022
As stated earlier, most of the African startups that raised the most funds in 2022 are concentrated in Nigeria, Kenya, South Africa, and Egypt. See their details below;
Flutterwave announced a $250 million Series D funding round in February 2022, led by B Capital Group, with participation from Alta Park Capital, Whale Rock Capital, Lux Capital, and others. As of the end of the year, the Nigerian fintech behemoth was the only player in the ecosystem to raise more than $200 million in a single round.
This Kenyan e-commerce player announced in March 2022 that it had raised $125 million in a Series A2 funding round led by Tiger Global and Avenir Growth Capital. It also changed its name from Sokowatch to Wasoko.
In January 2022, this Tunisian artificial intelligence startup announced a $100 million Series B funding round led by Alpha Intelligence Capital and CDIB Capital.
In February 2022, this Africa-focused chat commerce startup announced a $91 million Series C funding round led by Arrowroot Capital, with participation from Kennedy Lewis Investment Management, Endeavor Global, and Harvest.
This asset financier received $75 million in growth equity from Generation Investment Management and Broadscale Group in March 2022. Previous investors such as CDC Group and Lightrock also took part.
Funding African startups and Market insights- what’s the connection?
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Though the African tech scene isn’t as prominent in scale as the US and European markets, it is growing and has been very successful in some areas. So there’s much to be said about what makes it an attractive place for investors entering Africa. The companies that have recently raised large sums of money and gained traction with international investors are deeply rooted in the continent. Interestingly, adequate market intelligence makes this possible through reliable data.
Overall, Survey54 provides startups with crucial information about new market trends and consumer preferences. This allows for better decision-making strategies and helps entrepreneurs understand their opportunities. It also makes it easier for startups to raise capital, which is an essential element in the journey of almost every entrepreneur.
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