(3 Minutes Read)
African start-ups raised an impressive USD 420 million in July 2024, the highest monthly fundraising performance in over a year. The ecosystem has now raised over USD 1.2 bn since the beginning of the year.
This feat is more than the total funds raised in the entire second quarter and is 2.5 times the average monthly amount raised over the past 12 months. The increase in fundraising makes July 2024 the best month on record since tracking began in 2019. Despite hitting the USD 1 bn funding mark in July with 16 raising at least USD 1 million, it has been the slowest pace in recent years.
In July, 47 ventures raised at least USD 100,000, making it the second-best month after May last year, when 40 grant announcements were made by organizations such as DEG, CCHub, and iHub. Out of these 47 ventures, 16 raised at least $1 million, which aligns with the monthly average for the first half of the year. The numbers were heavily skewed by the two mega deals announced during the month: d.light, a solar energy company, secured a new $176 million securitization facility, and MNT-Halan, a microfinance lending and payment company, raised USD 157.5 million to support their expansion. NALA’s USD 40 million Series A is also notable. Combined, these three deals represent 90% of the total funding raised in July.
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The impressive July-2024 performance not only allowed the ecosystem to comfortably surpass the USD 1 billion mark in funding raised in 2024, reaching USD 1.2 billion, but also to exceed the amount raised in 2020. With this momentum, the next milestone of USD 1.4 billion raised in 2019 is now within reach.
