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A year of highs and lows, 2024 tested the resilience of Africa’s tech sector like never before. In this edition of IN THE VALLEY, we reflect on the turbulence, the recovery, and the milestones that defined the year.
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Is 2024 the Year of Africa’s Tech Revival?
The African tech landscape in 2024 mirrored the highs and lows of a dynamic industry finding its footing amidst global pressures. The year started on shaky ground, with funding drying up and the sobering reality of numerous startup closures. Yet, the narrative shifted mid-year as the ecosystem rebounded with remarkable vigor. This turnaround was marked by groundbreaking M&A activity, the rise of new unicorns, and Africa’s increasing integration into global markets.
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The Turbulence Phase: Challenges at the Start of 2024
The early months of 2024 saw Africa’s tech sector grappling with significant headwinds. Investor confidence waned as global macroeconomic pressures and rising interest rates tightened liquidity. The result: a 51% declinein funding compared to Q1 2023
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Startup Closures by Sector
A total 26 startups in Africa closed shop between 2022-2024, with fintech and E-commerce affected the most.
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Funding Drought
Total funding for Q1 2024: $800 million (down from $1.45 billion in Q1 2023).
Declines were most pronounced in fintech, which saw a 60% drop in deal activity.
Investors turned cautious, focusing on profitability over growth.
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Broader Impact
Companies resorted to layoffs, with over 5,000 tech jobs lost in Q1 2024.
Rising costs and weak local currencies exacerbated the challenges for startups dependent on foreign funding.
The Resilience Phase: Recovery and Growth in 2024
Despite these early challenges, the sector’s resilience began to shine in mid-2024, as strategic consolidations and groundbreaking expansions marked a clear turnaround.
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M&A Milestones
Wasoko merger: The $230 million merger between Wasoko, founded by Daniel Yu and MaxAB, founded by Belal EL-Megharbel, became Africa’s largest M&A deal of 2024, showcasing the maturity of the e-commerce sector. This consolidation is expected to streamline logistics and strengthen regional trade networks. We covered this in an exclusive episode on the podcast this season.
Traction Apps Acquisition: Nigerian fintech startup Traction Apps was acquired by OmniRetail . This Nigeria based leader in B2B e-commerce, is one of the portfolio companies of Silverbacks Holdings. Recently voted fastest growing company in Africa by Financial Times, this category champion is already profitable and led by serial founder Deepankar Rustagi.
Brass Acquisition: Business banking startup Brass was acquired by a group of investors led by payment giant Paystack (a company of Stripe) signalling increased interest in consolidating Africa’s financial services ecosystem.
Chaka Acquisition: Digital trading fintech Chaka was acquired by Rise, another digital trading startup. This acquisition further highlights the consolidation trend within Africa’s fintech space.
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Unicorns: Moniepoint and Tyme
Moniepoint Group (Nigeria): Secured $110 million in Series C funding, achieving unicorn status and driving financial inclusion with innovative SME lending platforms. Moniepoint is backed by VCs such as QED Investors, DPI, Verod and co-founded by Tosin Eniolorunda.
Tyme (South Africa): Raised $250 million, after expanding operations into Asia with the support of strategic investors like Tencent, it recently received backing from Nubank, Latin America’s largest fintech group. Tyme’s growth trajectory highlights its ability to adapt and scale across continents. Tyme’s controlling shareholder is billionaire Patrice Motsepe.
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Moove’s Global Expansion:
Moove, the mobility fintech and a portfolio company of Silverbacks Holdings, epitomized Africa’s global ambitions as it expanded to Latin America and the US, partnering with Waymo to enter the autonomous vehicle space. Already scaling in four continents, Moove is an Uber backed global brand born in Africa and now headquartered in the Middle East. This local and international institutional investors’ darling is co-led by serial founders Ladi Delano and Jide Odunsi.
Other Notable Developments
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Renewable Energy Tech Rises
Startups like Solarise Africa and M-Kopa raised a combined $175 million in funding this year to expand off-grid energy solutions
A shift towards sustainable energy tech reflects Africa’s focus on tackling energy poverty.
- Venture Capital Resurgence
New funds launched by global players such as Sequoia Capital and SoftBank signal renewed confidence.
Africa also witnessed a revival marked by more funds reaching second or final close
- P1 Ventures: Completed the second close of its second fund at $35 million, aiming to reach $50 million by final close, focusing on early-stage African entrepreneurs.
- Verod-Kepple Africa Ventures: Closed a $60 million pan-African fund to support scalable, tech-enabled startups addressing challenges on the continent
- Janngo.africa: reached the final close of its oversubscribed $78 million fund, marking Africa’s largest gender-equal tech VC fund.
- Partech: Fully closed its Africa-focused fund, ‘Partech II,’ at over $300 million, making it the largest tech focused VC fund on the continent.
Closing Reflections
As we look back on 2024, it’s clear that this was a year of transformation. The struggles of the early months catalysed critical adaptations, and the sector’s rebound demonstrated its resilience. This year reinforced a critical lesson: the journey of innovation is rarely linear, but it is always forward-moving.
Ibrahim Sagna, Investor | Chairman | Host
