Africa's Biggest Startups by Valuation

African Startup Funding: A Year of Adjustment and Future Outlook

Investment in African startups surpassed $2 billion last year, effectively recovering to levels seen before the COVID-19 pandemic. However, the results were varied, and current indicators suggest a continuation of the careful approach observed over the preceding two years.

The Decline of Mega-Deals and a Focus on Profitability

A significant decrease in large investment rounds, consistent with a broader trend of tightening in global venture capital following the peak of 2020-2021, prompted investors – both local and international – to emphasize sustainable business practices and demonstrable routes to profitability.

This change in investment priorities presented difficulties for startups that were heavily funded but unable to meet these new standards. Consequently, several prominent companies were forced to cease operations.

High-Profile Startup Closures

Among the notable closures were Copia, a mobile commerce platform, and Gro Intelligence, a firm specializing in data analytics for the agricultural sector. It is important to note that both companies had secured over $100 million in venture capital, with Gro Intelligence previously valued at $850 million.

A Shift in Ecosystem Maturity

Previously, startup failures in Africa were primarily concentrated in the early stages of funding – pre-seed and Series A. However, the recent closures, including those of Ghanaian fintech Dash and Nigerian biotech 54gene in 2023, indicate a pivotal moment for the ecosystem.

Even startups in later stages of growth are now facing increased risks and scrutiny.

Strategic Pivots and Mergers

Rather than shutting down, some companies chose to adapt strategically to the challenging environment of 2024. For example, B2B e-commerce companies Wasoko and MaxAB merged their operations.

This consolidation was aimed at preserving capital and optimizing resources, capitalizing on their combined experience within the industry.

Success Stories Amidst the Challenges

Conversely, companies like Moniepoint, Moove, and TymeBank experienced success, attracting significant investments from major players such as Uber, Google, and Nubank. This positive performance was driven by strong growth and profitability.

A Landscape of Contrasts

These developments highlight the contrasting realities of Africa’s tech sector following the recent boom: increasing difficulties alongside remarkable resilience and adaptation.

The Role of Unicorns and Soonicorns

Unicorns and companies approaching unicorn status continue to be central to the narrative, attracting attention and influencing discussions about the future of the African tech ecosystem.

Their successes and challenges demonstrate the continent’s substantial potential while simultaneously shaping the conversation around its technological advancement.

Therefore, it is a fitting time to examine these billion-dollar ventures and the emerging companies that are following in their footsteps.

African Unicorns

Flutterwave (2021) — $3 billion: Established in 2018, Flutterwave delivers payment processing solutions for both individuals and businesses operating within Africa. It also streamlines financial transactions connecting them to global markets. This Nigerian fintech company has secured over $475 million in investment, notably a $250 million Series D round. Key investors include Tiger Global, Avenir Growth, and DST Global.

OPay (2021) — $2 billion: OPay offers a comprehensive suite of digital financial services. These encompass mobile payments, savings options, loan facilities, and bill settlement through both agent networks and a dedicated mobile application. Originating in 2018 as a division of Opera, OPay has attracted over $500 million in funding, including a substantial $400 million Series C investment. Investors include SoftBank Vision Fund 2, Sequoia Capital China, and Redpoint China.

Wave (2021) — $1.7 billion: Based in Senegal, Wave provides accessible and affordable mobile money services, aiming to broaden financial inclusion in Francophone Africa. Launched in 2018 as a spin-off from Sendwave, Wave successfully raised $200 million in a Series A round. Participants in this round were Stripe, Sequoia Heritage, Founders Fund, and Ribbit Capital.

Andela (2021) — $1.5 billion: Andela functions as a global talent platform, connecting companies with highly qualified software engineers, product managers, and other technology specialists. Founded in 2014, this recruitment platform has garnered over $380 million in funding, including a $200 million Series D investment. Backing comes from SoftBank, the Chan Zuckerberg Initiative, and Spark Capital.

TymeBank (2024) — $1.5 billion: This South African digital bank provides transactional accounts, savings products, and short-term loans, with a primary focus on serving individuals and businesses with limited access to traditional banking. Tyme Group, the parent organization of both TymeBank and GoTyme in the Philippines, secured $250 million in a Series D funding round in February, led by Nubank. Additional investors include M&G Catalyst Fund, Tencent, African Rainbow Capital, and Norrsken22.

Chipper Cash (2021) — $1.25 billion: Chipper Cash facilitates cross-border money transfers within Africa, alongside offering debit cards and investment opportunities. The company has raised more than $300 million in funding. Investors include FTX, Ribbit Capital, Bezos Expeditions, and SVB Capital.

Interswitch (2019) — $1 billion: Founded in 2002, Interswitch is a payments infrastructure company delivering integrated payment and transaction solutions across Africa through various channels. This Nigerian fintech has raised over $300 million, including a $200 million round led by Visa. Other investors include Helios Investment Partners and Leapfrog.

MNT-Halan (2023) — $1 billion: Egyptian financial technology firm MNT-Halan, established in 2017, offers a diverse range of services. These include digital lending, payment processing, e-commerce solutions, and buy now, pay later options, specifically targeting underserved populations. MNT-Halan has secured over $500 million in both equity and debt financing. Investors include Chimera Investments, Apis Growth Fund II, and Development Partners International.

Moniepoint (2024) — $1 billion: Moniepoint, a Nigerian fintech founded in 2015, provides financial services designed for businesses and individuals throughout Africa. These services include digital banking, payment solutions, credit facilities, and business management tools. The company raised $110 million in Series C funding in October. Investors include QED, Development Partners International, Google’s Africa Investment Fund, and Lightrock.

As of early 2024, Moniepoint and TymeBank were valued at $850 million and $965 million respectively, positioning them as frontrunners in Africa to achieve unicorn status – a valuation they subsequently attained within the same year.

The following is an overview of other African startups with the potential to reach unicorn status in the near future, based on their most recent funding rounds.

Emerging African Tech “Soonicorns”

PalmPay — Valuation between $800 million and $900 million: Launched in 2019, this Nigerian fintech facilitates financial transactions such as money transfers, bill payments, airtime purchases, and credit access for users. PalmPay has successfully secured $140 million through two funding rounds, notably a $100 million Series A in 2021.

Sources indicate that recent investment may have elevated the company’s valuation to the $800 million to $900 million range. Key investors include Transsion Holdings, Chuangshi Capital, Chengyu Capital, and AfricInvest.

Fintech and Mobility Innovators

Moove — $750 million: Established in 2020, Moove is a mobility fintech company focused on providing revenue-based financing for vehicles. This enables gig workers to gain access to transportation for ride-hailing, logistics, and delivery services.

Operating across Africa, Europe, the Middle East, and Asia, Moove has attracted over $409 million in funding. Uber spearheaded its latest $100 million Series B round, alongside investors like Mubadala Investment Company, Speedinvest, and Stride Ventures.

Super Apps and Digital Banking

Yassir — Valuation between $600 million and $800 million: This Algerian startup operates a comprehensive super app, offering a variety of on-demand services. These include ride-hailing, food and grocery delivery, and financial solutions, spanning six countries.

Yassir has raised approximately $200 million from investors such as BOND, Y Combinator, and Stanford Alumni Ventures.

Kuda — $500 million: Founded in 2019, Kuda is a Nigerian digital-only bank providing a full suite of financial services. These services encompass banking, savings, lending, and intelligent budgeting tools.

The company has raised over $90 million since its launch, with a notable $55 million Series B round that valued it at $500 million. Investors include Target Global and Valar Ventures.

E-commerce and Chat Commerce Platforms

Wasoko/MaxAB — Approximately $500 million: Wasoko, a Kenyan B2B e-commerce platform, and MaxAB, its Egyptian counterpart, together form Africa’s largest digital platform for informal retail. They connect buyers and sellers of fast-moving consumer goods.

A merger between the two companies resulted in a combined valuation of around $500 million, according to VNV Global, one of Wasoko’s investors. Collectively, the startups have raised nearly $240 million from investors like Tiger Global, Silver Lake, British International Investment, and Avenir Growth.

Clickatell — Approximately $500 million: Originating in South Africa, Clickatell specializes in chat commerce. It provides a platform for businesses to connect, engage, and transact with customers via popular messaging apps like SMS and WhatsApp.

A $91 million Series C funding round in 2022 increased Clickatell’s total funding to over $100 million. Investors include Sequoia Capital, Arrowroot Capital, and Endeavor Global.

Innovative Lending and Payment Solutions

M-KOPA — Valuation between $500 million and $600 million: Established in 2011, M-KOPA, based in Kenya, offers affordable access to smartphones, electric motorcycles, and digital financial services. These include loans and health insurance, utilizing a pay-as-you-go model and digital micropayments.

The company has secured over $500 million in combined debt and equity funding. Investors include Sumitomo, Lightrock, Standard Bank Group, and the International Finance Corporation.

Yoco — Valuation between $400 million and $500 million: Yoco delivers payment solutions and business tools, including point-of-sale card machines and online payment gateways, specifically designed for small and medium-sized enterprises.

The South African fintech has raised over $107 million, including an $83 million Series C round. Investors include Dragoneer Investment Group, Breyer Capital, HOF Capital, and 4DX Ventures.

Onafriq — Valuation between $300 million and $500 million: Formerly known as MFS Africa, Onafriq operates the most extensive digital payments hub in Africa. It connects millions of mobile money wallets across numerous African countries.

This connectivity facilitates cross-border payments, remittances, and financial integrations for both individuals and businesses. The South African fintech has raised over $300 million, including a $100 million Series C, from investors like AfricInvest, CommerzVentures, and Admaius Capital Partners.