The African Tech Startups Funding Report (2021) demonstrates a continued interest by investors in promising African startups. According to the report, 564 tech-based startups in Africa raised $2.14 billion in funding last year.
The Report singles out Nigeria, Egypt, South Africa and Kenya as the “big four,” highlighting them as the most vibrant hubs of startup destinations. With their combined investments amounting to $1.97 billion, the four countries accounted for 92.1% of the total funding.
From Kenya, 87 startups secured funding in the course of the year, securing a total of $291.98 million which accounts for 13% of the total investments. Twiga Foods and AI startup Gro Intelligence topped the investments channelled into the country.
Twiga Foods, a logistics company that links farmers from Kenya’s interior to urban markets raised $50 million in Series C funding. AI company Gro Intelligence raked in $85 million in Series B round.
Kenya and Uganda were highlighted among 15 countries where startups in particular industries have the potential to make the greatest impact. The countries have dynamic startups building financial, health and climate-oriented solutions.
Nigeria’s fintech Flutterwave and TradeDepot raised $170 million and $110 million respectively, to become the greatest recipients of the funds in the West African nation.
Investors throwing their support behind African startups have doubled from 370 in 2020 to 771, the report indicates, demonstrating the growing confidence in the ideas emerging from the continent.
The funding of African startups has attracted local and international funders, with successful founders such as Flutterwave’s Paystack’s Shola Akinlade, mPharma’s Gregory Rockson and Flutterwave’s Olugbenga Agboola starting to invest back into various startups.
The comprehensive report paints a picture of a very optimistic ecosystem that is embracing startups solving African problems. As the spirited emergence of startups continues across Africa, the funds trickling in from around the globe will play a critical role in hastening growth.