African startups raised $83 million in January 2024

Plus: Here are the leading African tech moves from last month.                                                                                                                                                                                                                                                                                                                                                                                                                 February 05, 2024 | [Read Online]( In partnership with Share this newsletter: //link.mail.beehiiv.com/ss/c/_p8mO7pBiG6zFvckPDjzaZkxNnUja96KSCTzHXx2gCinQbxw_qdxxuopG-d0baJxAdN5L7OHU5ZQxpp-wRCFTTl1JvJ3F5nCZ871T1mivqhY04wDXGi6QZid7E-ArqeKcDMsu03hwk86YF3qZz-AXFrNw5k4O0lL_1B9wRsAF383ggoue1V9GAVbYWilomsSyBnc2hm_XBjgQZ6IW-KJ4PJ9yRf4pM0Pwit6ejDeujVhR9IIP500ZZvn55R_sNVzsslNF7IoiK_m_oM0l3dsGmfIuzGzW3ajf9753uRtxyEscjNZI-oJqtL0_LmqJ71Ieo2gxTIu2UXZNBfpoi88C8T7LCkrKlZaUT_AEbYZodQjA5U48XJIsuoEZ3I9vJIJ/43l/iy736EfrTQyHcwRoAAS-4A/h2/4lxCjsd-fW94_7Z_SD5vkQUtq5pPNGsgZ2bFta9l4kw [Lire en Français]( [اقرأ هذا باللغة العربية]( Good morning ☀️ Our hearts go out to our readers in Namibia who lost their President, Hage Geingob, over the weekend. Geingob, who was Namibia’s third president, had announced that he was diagnosed with cancer earlier in January. His [last tweet](, a day before leaving for treatment at a US facility, was in support of the Namibian Brave Warriors, charging them to carry on with courage in their AFCON match against Mali’s Les Aigles. In today's edition - [African startups raise $83 million in January](#Story1) - [The leading African tech moves from January 2024](#Story2) - [The World Wide Web3](#WW3) - [Opportunities](#Opps) Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today [here](. African Tech Roundup //link.mail.beehiiv.com/ss/c/_p8mO7pBiG6zFvckPDjzaZkxNnUja96KSCTzHXx2gCinQbxw_qdxxuopG-d0baJxAdN5L7OHU5ZQxpp-wRCFTTl1JvJ3F5nCZ871T1mivqhY04wDXGi6QZid7E-ArqeKcDMsu03hwk86YF3qZz-AXFrNw5k4O0lL_1B9wRsAF383ggoue1V9GAVbYWilomsSyBnc2hm_XBjgQZ6IW-KJ4PJ9yRf4pM0Pwit6ejDeujVhR9IIP500ZZvn55R_sNVzsslNF7IoiK_m_oM0l3dsGmfIuzGzW3ajf9753uRtxyEscjNZI-oJqtL0_LmqJ71Ieo2gxTIu2UXZNBfpoi88C8T7LCkrKlZaUT_AEbYZodQjA5U48XJIsuoEZ3I9vJIJ/43l/iy736EfrTQyHcwRoAAS-4A/h10/SKTMFtzQXqhcPW6-Y_WWP0SfytZKsaqKznNuGPuQ1OE 1. Funding: All roads lead North African startups got off to a sluggish start in 2024, raising just $83 million across 31 disclosed deals in January, according to data from [Africa: The Big Deal](. This marks a steep decline from the $545.1 million raised in 20 deals during the same month in 2023, representing an 84.8% year-on-year drop. The January 2023 fundraising activity was, however, heavily influenced by a single large deal: the [$443 million acquisition]( of AI company Instadeep by BioNTech. Excluding this outlier, African startups in January 2023 raised roughly $99.1 million, bringing the YoY decline to a more moderate 16.2%. This suggests that the underlying growth of the African tech ecosystem remains relatively stable, despite the headline-grabbing funding slowdown. [Leading African tech moves](Image source: TechCabal/Timi Odueso The three sectors with the highest funding are agritech with $26.3 million in raises, cleantech with $18.1 million, and healthtech with a modest $13.5 million. Various sectors—most notably fintech—within the ecosystem have observed a decline in funding compared to the sums raised in previous years. With a global funding winter in tow, investors are increasingly focusing on startups with proven track records of traction and growth, leaving fewer resources available for testing the waters. Three of the four logistics startups—[Bosta](, [FriendlyM]( and [Roboost](—who raised funds in January 2024 were from North Africa, or Egypt specifically. Last year, logistics startups received a fair bit of interest as the fourth sector with the highest funding at $205 million. While only a fraction of this funding came from North Africa, Egypt’s logistics sector may see increased interest this year with the growing success of mobility startup Swvl which recorded its [first-ever net profit]( of $2.1 million last year after recording $161 million in losses in 2022. [Leading African tech moves](Image source: TechCabal/Timi Odueso Regionally, North Africa takes the lead with $25.1 million (30.24%), followed by East Africa with $23.3 million and West Africa with $17.3 million. While the headline numbers suggest a slowdown, a closer look reveals pockets of strength and shifting investor focus as this forms the fifth consecutive month since West Africa led startup investments on the continent. On a brighter note, North African startups are in a similar position from last year—starting the year off by leading investments. The top 5 disclosed deals of the month are: - Nigeria-based cleantech [Nithio’s $10 million]( raise. - Kenyan agritech [Apollo Agriculture’s $10 million]( raise from Swedfund and ImpactConnect. - Egyptian healthtech [Yodawy’s $10 million]( raise. - AgDevCo and IDh Farm Fit [$9.5 million investment]( in agritech Hatch Africa. - Kenya-based cleantech SunKing’s [$7 million unsecured loan]( from Lendable. *Note: This data is inclusive only of funding deals announced in January 2024. Raises are often announced later than when the deals are actually made. This data also excludes estimated grants from accelerators. Secure payment gateway for your business Fincra’s payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through bank transfers, cards, virtual accounts and mobile money. [Create a free account and start collecting NGN payments with Fincra](. African Tech Roundup //link.mail.beehiiv.com/ss/c/_p8mO7pBiG6zFvckPDjzaZkxNnUja96KSCTzHXx2gCinQbxw_qdxxuopG-d0baJxAdN5L7OHU5ZQxpp-wRCFTTl1JvJ3F5nCZ871T1mivqhY04wDXGi6QZid7E-ArqeKcDMsu03hwk86YF3qZz-AXFrNw5k4O0lL_1B9wRsAF383ggoue1V9GAVbYWilomsSyBnc2hm_XBjgQZ6IW-KJ4PJ9yRf4pM0Pwit6ejDeujVhR9IIP500ZZvn55R_sNVzsslNF7IoiK_m_oM0l3dsGmfIuzGzW3ajf9753uRtxyEscjNZI-oJqtL0_LmqJ71Ieo2gxTIu2UXZNBfpoi88C8T7LCkrKlZaUT_AEbYZodQjA5U48XJIsuoEZ3I9vJIJ/43l/iy736EfrTQyHcwRoAAS-4A/h28/Gng3zqeOWLXC-Em9wcygLqvtmuLsrBLzIA15T3RNzPM 2. Investments: EIB makes its third African injection, and Accelerate Africa and T-vencubator debuts While funding is pretty much the same since last year, Africa’s tech ecosystem investment space saw both new and old faces in January 2024. Early on in the month, the European Investment Bank (EIB) made its third investment in an Africa-focused venture. This time, Seedstars was the lucky choice with [a $30 million check](. The venture says it will distribute 50% of the funds across francophone Africa with selected startups set to receive between $250,000 and $2 million. Seedstars also received [an additional $10.5 million]( from the African Development Bank (AfDB) later in the month. On the strategic side, two-time unicorn founder Iyin Aboyeji and investment powerhouse Mia von Koschitzky-Kimani teamed up to launch what media houses are now terming “The YC of Africa”. The venture is [Accelerate Africa](, a Nigeria-based accelerator which will provide 10 pre-seed and seed-stage startups with business and product development expertise with the aim of pitching to investors. Finally, Egypt saw the launch of a VC Firm-Incubator hybrid with [T-vencubator](, a firm that wants to invest in “exceptional talents shaping Egypt’s future”. 3. M&As: Access Holdings closes three acquisitions in one month Last month, the parent company of Nigeria-based commercial bank, Access Bank, taught startups a lesson on acquisitions. Access Holdings completed three acquisitions within the space of a month. In the second week of January, it announced that it had completed [the acquisition]( of Zambia’s Atlas Mara more than two years after it announced the merger. Less than a week later, it completed the acquisition of insurance brokerage company [Megatech Insurance](. One of its most significant acquisitions was ARM Pensions, Nigeria's second-largest pension fund manager, which received regulatory approvals just days before the end of the month. These acquisitions, long anticipated, underscore Access' strategic expansion across the continent. 4. Pivots: Kippa and Zilla jump ship Ecosystem players who contributed to our [2023 Wrapped]( article noted that 2024 will see more startups move towards better business models. We saw a bit of that in January with two startups pivoting. Zilla, which launched as a buy-now-pay-later product in 2021, changed gears and [pivoted]( to cross-border payments last month. Sources close to the company said it faced challenges with helping customers understand the BNPL model. Next, Kippa, which faced a $31,000 internal fraud case, announced that it would move [from fintech to edtech](. The company, last year, moved its agency banking product KippaPay to another startup, and now, it’s launched an edtech platform that will allow users to create courses using AI. 5. Shutdowns: Cova shuts down, and Woven knits itself back together While some startups pivoted, some wound their activities up. In a January 24 email to users, asset management platform Cova announced that it would [cease operations]( by February 10. While Cova’s management is yet to give specific reasons for its shutdown, citing only “several factors” in its email, CEO Oluyomi Ojo had mentioned in [a 2021 interview]( that users were still adapting to the concept of a startup that helps users transfer asset ownership in the event of their death. The startup raised $800,000 during its run. Another startup, Woven Finance, was also in the news for shutting down. The Nigeria-based startup sent an email announcing [its shutdown plans](, but later rescinded the claim, stating that the email was sent in error. Accept fast in-person payments, at scale Delight your customers by allowing frontline staff and sales agents confirm bank transfers, instantly. [Learn more →]( African Tech Roundup //link.mail.beehiiv.com/ss/c/_p8mO7pBiG6zFvckPDjzaZkxNnUja96KSCTzHXx2gCinQbxw_qdxxuopG-d0baJxAdN5L7OHU5ZQxpp-wRCFTTl1JvJ3F5nCZ871T1mivqhY04wDXGi6QZid7E-ArqeKcDMsu03hwk86YF3qZz-AXFrNw5k4O0lL_1B9wRsAF383ggoue1V9GAVbYWilomsSyBnc2hm_XBjgQZ6IW-KJ4PJ9yRf4pM0Pwit6ejDeujVhR9IIP500ZZvn55R_sNVzsslNF7IoiK_m_oM0l3dsGmfIuzGzW3ajf9753uRtxyEscjNZI-oJqtL0_LmqJ71Ieo2gxTIu2UXZNBfpoi88C8T7LCkrKlZaUT_AEbYZodQjA5U48XJIsuoEZ3I9vJIJ/43l/iy736EfrTQyHcwRoAAS-4A/h45/Hg7ETO6BKWrD7ZNm2lW3urAVf49eSpjTYg2Jc4c9GKE 6. Stepdowns: Peter Njonjo, Ashkay Grover, Tosin Osibodu, and Duke Ekezie, step down As we waved goodbye to startups in January, some CEOs also bid farewell to their companies. Cellulant CEO Ashkay Grover who joined the group in 2021 [stepped down]( to focus on personal matters. The company had reportedly effected [a third round of layoffs]( just one month before Grover’s exit. Kenyan agritech Twiga Foods also parted ways with its co-founder and 10-year CEO Peter Njonjo who stepped down from the company’s board. TechCabal’s investigation indicates that [Njonjo was forced out]( by investors who bailed the company out of a lawsuit with a $35 million investment. Tosin Osibodu, co-founder and CEO of Chaka also [exited]( the company to focus on a new venture, Alpaca. Chaka was acquired by Risevest last year, and Osibodu left the company in the capable hands of Risevest CEO Eke Urum. Finally, Kippa’s co-founder [Duke Ekezie disbanded]( from the company he and his brother Kennedy Ekezie founded. Duke is reportedly set to focus on a new venture that he and Kennedy had previously discussed. 7. Companies: Swvl announces first-ever net profit, TymeBank achieves profitability in the fifth year Two companies netted some profit last month. MENA-based mobility startup Swvl reported [its first net profit]( of $2.1 million and an operating profit of $13.4 million. This is a notable shift from the $56 million operating losses reported in H2 2022. Swvl’s head-turning business is especially significant when you consider that it reported $161 million in losses just one year ago. How did it turn the tides? The company sold off some of its subsidiaries and narrowed its focus to Egypt, Saudi Arabia and the UAE. Swvl also transitioned into a B2B business, and laid off over 40%—about 400 employees—of its workforce. South African neobank TymeBank also did what many banks don’t do: it made its first profits within five years of launching. Two months after it reached 8 million subscribers—and six months after reporting $45 million in losses—TymeBank reports that it reached over $215 million in annualised revenue. [Here’s the full story](. 8. Cybercrime: Nigeria and Ghana move to fight mobile money fraud West Africa is tackling fraud by focusing on its mobile money agents. Nigeria’s apex bank, in January, announced a partnership that will see to the implementation of [new KYC measures]( at PoS points. The country recorded over 10,098 fraud cases [worth ₦1.95 billion]( ($2 million) last year, and it wants to make sure that won’t happen again. Soon, the apex bank will launch the new feature that will flag potentially fraudulent transactions and force PoS agents to conduct KYC measures before approving transactions. Ghana is doing something similar to tackle fraud in its $155 billion mobile money space. Mobile money agents in the country had until February 1, 2024, to link their accounts to Tax Identification Numbers (TIN) or the Ghana card. 9. Big Tech: Google launches first African cloud centre In January, during a week-long conversation surrounding how cloud computing eats into a startup’s funds, Google launched its [first cloud region in Africa](, bringing its cloud services to South Africa. This makes Google the latest major cloud provider to enter the South African market, following Microsoft Azure (2018), Amazon Web Services (AWS) (2020), and Alibaba Cloud (2019). 10. Internet: Telecom Egypt to launch 5G Egypt approved its first 5G licence. Over 12 African countries including Nigeria, South Africa, Botswana and Zimbabwe have launched 5G and Egypt is set to join them in a couple of months. The National Telecommunications Regulatory Authority (NTRA) of Egypt, in January, awarded the nation's first 5G licence to the state-owned Telecom Egypt at a $150-million price tag. The telecom also announced that it has [begun testing 5G services]( in five locations across the country, aiming for a full rollout later in 2024. Attend GEC+ Africa Join entrepreneurs and leaders from 43+ African countries in Cape Town at this year’s GEC+Africa conference. Register [here]( to reserve your place. Crypto Tracker //link.mail.beehiiv.com/ss/c/_p8mO7pBiG6zFvckPDjzaZkxNnUja96KSCTzHXx2gCinQbxw_qdxxuopG-d0baJxAdN5L7OHU5ZQxpp-wRCFTTl1JvJ3F5nCZ871T1mivqhY04wDXGi6QZid7E-ArqeKcDMsu03hwk86YF3qZz-AXFrNw5k4O0lL_1B9wRsAF383ggoue1V9GAVbYWilomsSyBnc2hm_XBjgQZ6IW-KJ4PJ9yRf4pM0Pwit6ejDeujVhR9IIP500ZZvn55R_sNVzsslNF7IoiK_m_oM0l3dsGmfIuzGzW3ajf9753uRtxyEscjNZI-oJqtL0_LmqJ71Ieo2gxTIu2UXZNBfpoi88C8T7LCkrKlZaUT_AEbYZodQjA5U48XJIsuoEZ3I9vJIJ/43l/iy736EfrTQyHcwRoAAS-4A/h61/ZVGHFzFs7WMvX4HDsxaZs_QRL18q4GqWK0Et6t6OqsI The World Wide Web3 Source: [Tc_insight] Coin Name Current Value Day Month Bitcoin $42,905 - 0.39% - 1.82% Ether $2,303 + 0.03% + 0.68% Jupiter $0.53 - 4.79% - 66.31% Solana $96.09 - 2.01% - 2.91% * Data as of 22:10 PM WAT, February 4, 2024. [OneLiquidity GIF]( Effortlessly make global settlements in over 30 currencies across 120+ countries spanning four continents, delivering cost-effective and reliable solutions to your clients, suppliers, and customers. [Get started today](. Events //link.mail.beehiiv.com/ss/c/_p8mO7pBiG6zFvckPDjzaZkxNnUja96KSCTzHXx2gCinQbxw_qdxxuopG-d0baJxAdN5L7OHU5ZQxpp-wRCFTTl1JvJ3F5nCZ871T1mivqhY04wDXGi6QZid7E-ArqeK3KBT6IKK74ZZLxlwDKBwVGqXYTg63HNsW9YJy3g2idBkQJLUbDvlVw5SZTu5slkwjudoODVWhLtimHZMJ4fL1WTInKPXJE1pSvlKQsqHiDg1dg1TY9CDq_-4UKwzm6BT9V8_kYVkxL3X7uah3NwI99bMgmds3CzR8Cve5z9lGKg_42zyKKbSCl1lN3_owJmsN72hmZIplehdLZJmBgxjEmVxkpVg6-1IYpuP3iq0R6Qk_YGPQFm2RMdfstmkdT5dufq-gZe46jFWjt4rDb1Iuw/43l/iy736EfrTQyHcwRoAAS-4A/h66/cNrhKlbC43CqZl5SDYbGahZCHuieNejGliC4ZTGLwSY - The 6th Africa Tech Summit Nairobi is set for February 14–15, 2024. The Summit will connect tech leaders from the African ecosystem and international players under one roof. Network with key stakeholders including tech corporates, mobile operators, fintech, Web3 ventures, investors, innovative startups, regulators, and industry stakeholders driving business and investment forward. You can also get a 10% discount when you use the code “TECH10”. [Register here](. - Think securing funding guarantees your startup's success? Think again! Register for this free webinar by BrandOn on "Why Startups Fail Even After Raising Capital". On February 10, you’ll get to learn from Gerald Black (Black Ops), Oluwadunni Fanibe (TechStars), and others. [Register here](. What else is happening in tech? - [Flutterwave recovers $3 million from Kenyan authorities]( - [Nigeria’s apex bank bars banks from international money transfer operations]( - [Botswana rejects Musk’s Starlink application]( - [Safaricom stops M-Pesa transfers to unregistered users]( Written by: [Timi Odueso]( Edited by: [Ope Adedeji]( Want more of TechCabal? 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