African start-ups are gaining momentum year after year. The year 2018 has been particularly successful for African startups. Not only have they multiplied and developed, but they have managed to raise huge sums over the past year. In the first six months of 2018, African startups raised as much funds as during the whole of 2017.
Focus on fundraising in 2018
In the first half of 2018, more than 160 million dollars were raised by African startups, or nearly 93 billion CFA francs. The ecosystem of startups is therefore very healthy in Africa. The African continent is in full revolution. Innovation touches all areas, ideas and projects are increasingly credible.
There are many examples in Africa, and startups with high potential do not hesitate to embark on fundraising. In just six months, more than 120 operations have been carried out by ambitious young people across the continent. All fields are represented, but the field of technology and digital is the most present. In the area of FinTech, for example, 25 fundraising operations were completed, for an amount approaching $ 95 million. The branch’s online micro loan platform called Suit has raised more than $ 20 million in 2018.
We could also talk about the Nigerian travel agency Wakanow who managed to raise 40 million dollars, while Twiga foods, Kenyan platform to improve the supply chain of farmers raised $ 10 million in order to to increase its product range.
Several Kenyan startups have also joined the dance, this is the case of Cellulant, a decentralized payment platform on mobile, which has achieved the largest fundraising 2018, or $ 45 million. M-Kopa (solar products startup), which had already raised $ 51 million in 2017, raised $ 10 million in 2018. Lydia Mobile, a Nigerian financial platform, raised $ 6.9 million. This shows how the world of the African startup is changing, and that it will probably be with Africa in the future years.
The most active countries
This trend in the number of fundraisers in Africa is felt more in some countries than in others. Only a few African countries feel the impact of this dynamism of the startup ecosystem. The English-speaking countries are the most prominent, with Nigeria and South Africa in the lead.
We can also associate Kenya and Egypt. It is nevertheless important to note that Nigeria, South Africa and Egypt are the 3 largest economies of the continent, and with Kenya, they represent more than 80% of fundraising carried out on the continent, 94 operations out of the 120 identified in Africa in 2018.
English-speaking Africa has a better dynamic than Francophone Africa. We realize that the same countries that had been leaders in fundraising in 2017 are still leaders in 2018. This means that these countries have started a positive spiral, and they are in a certain continuity. As the numbers show, record amounts are being achieved.
All seers are therefore green for African startups who have good ideas because investors are closely interested in the African continent. Fundraising is no longer a Utopia for African startups, it is a reality and the evolution of the African continent assumes that it is a continent that will take an important place in the years to come.