October saw African start-ups secure a record $254 million, driven largely by Nigerian fintech Moniepoint’s $110 million round, earning it unicorn status.

African start-ups

October was a landmark month for African start-ups, with a record $254 million raised across 42 deals, each valued at $100,000 or more, according to Africa: The Big Deal’s latest report.

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As a result, this made October the second-best funding month of 2024, following July, and 50 per cent above the 12-month average.

In fact, it was the best October on record since 2019.

One of the standouts in the funding spree was Nigerian fintech Moniepoint, which secured $110 million in Series C funding, representing 43 per cent of October’s total.

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With this achievement
, Moniepoint joined the ranks of Africa’s unicorns—start-ups valued at over $1 billion.

This round highlighted Nigeria’s growing role as a fintech leader in Africa, drawing attention both on the continent and internationally.

Alongside Moniepoint, other significant rounds included electric bus service BasiGo, which raised $42 million in Series A, and cryptocurrency exchange Yellow Card, which secured $33 million in Series C funding.

These deals, along with Moniepoint’s, showed Nigeria’s dominance in the fintech sector, with 60 per cent of October’s funds directed to Nigerian start-ups.

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However, the report also pointed out disparities, especially gender inequality.

98 per cent of the funding went to start-ups with male CEOs, and 97 per cent was directed to ventures without female founders.

Despite the strong performance in October, the year overall has seen a 32 per cent drop in funding compared to 2023, reflecting a global slowdown in venture capital.

Nevertheless
, October’s funding figures offer hope for the future of Africa’s start-up ecosystem, highlighting both its potential and ongoing challenges.

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