African startups experienced phenomenal growth in 2021
Africa's startups bounced back in 2021, attracting a record $4bn before year-end, in what is seen a renewed investor interest in the continent’s tech marketplace.
A lot of startups in Africa experienced phenomenal growth and raised a record $4 billion before the close of 2021, showing a rise in investor interest in the continent’s rapidly growing tech industry.
According to Wee Tracker, Africa currently has seven unicorns: Jumia, Interswitch, Flutterwave, Andela, Wave, OPay, and Chipper Cash.
This year, five of them became unicorns, including two in September alone, suggesting an unprecedented interest in Africa’s startup industry.
Startups in Nigeria, South Africa, Egypt and Kenya – considered the continent’s big four – gobbled up 80% of the over $4bn raised through 2021.
In 2021, Nigerian companies raised $1.37 billion, whereas South Africa raised $838 million, Egypt raised $588 million, and Kenya raised $375 million. For the year, startups in Africa’s most populated country landed over 200 deals, while the remaining three countries each landed over 100.
In November 2021 alone, African startups raised $605m, which is nearly half the total amount of funds raised by Africa’s startups in all of 2020 – around $1.3bn according to data-driven research firm, Briter Bridges.
According to Briter Bridges, while financial technology companies retain the lion’s share of total funding, cleantech is increasingly attracting capital from local and international investors, including a growing number of corporates interested in fast-tracking their transition to renewable energy.
While financial technology companies continue to receive the lion’s share of total funding, cleantech is increasingly attracting capital from local and international investors, including a growing number of corporations looking to accelerate their transition to renewable energy.
“Healthcare, data and IT infrastructure, and agriculture follow as more private companies reach maturity, but ticket sizes remain contained compared to those across fintech and cleantech”, Briter Bridges said.