By Ebestnations 
Start-ups across Nigeria, Kenya, South Africa, and other nations on the continent secured $2.2 billion in equity, debt, and grants (excluding exits) last year, as reported by Africa: The Big Deal.
While this figure is significant in absolute terms, it marks a 25 percent decline compared to the $2.9 billion raised in 2023. In 2024, a total of 188 ventures successfully raised $1 million or more (excluding exits), which is only 10 percent lower than the previous year. On the exit side, there were 22 public exits last year, compared to 20 in 2023.
The report attributes the relative underperformance of 2024 primarily to a sluggish start to the year, with just under $800 million raised in the first half, the slowest semester since 2020.
However, a notable recovery occurred in the latter half of the year, with $1.4 billion raised in H2 alone, reflecting a 25 percent year-on-year increase and an 80 percent rise compared to H1. This made it the second-best semester since the onset of the ‘funding winter’ in mid-2022.
The surge in numbers was partly driven by two significant deals involving Nigeria’s Moniepoint and Tyme Group in Q4, resulting in the creation of two new unicorns in quick succession, the first such occurrences since early 2023.
As the year came to a close, Tyme announced a $250 million Series D funding round, achieving a valuation of $1.5 billion, thus becoming Africa’s ninth unicorn, shortly after Moniepoint attained unicorn status following its Series C announcement.
In the early 2010s, one particular start-up, Jumia, consistently made headlines in Africa by raising unprecedented amounts of capital, a trend that did not reoccur until the end of the decade. Between 2012 and 2014, the e-commerce platform reportedly raised over $200 million, culminating in a $300 million round for its parent company, Africa Internet Group, in March 2016, which solidified AIG’s prominence in the sector.The company experienced significant growth leading up to its listing on the New York Stock Exchange (NYSE) via an Initial Public Offering (IPO) in April 2019, which resulted in the loss of its unicorn status. Initially valued at $3 billion, its market capitalization saw a sharp decline before rebounding to $5 billion. However, since early 2022, it has predominantly remained below the $1 billion threshold, currently hovering around $600 million.
Another entity often incorrectly labeled as a unicorn is the Egyptian fintech firm Fawry. Fawry went public on the Egyptian stock exchange in 2019, achieving a valuation of $1 billion as a publicly traded company rather than as a private startup. While its market capitalization surpassed $1 billion for a considerable duration, it now stands at roughly $600 million.
In terms of Africa’s unicorn landscape, Interswitch holds the distinction of being the first. The Nigerian fintech company made headlines in November 2019 when it secured a substantial investment from Visa, estimated at $200 million, marking the beginning of a new era of nine-digit funding rounds across the continent. With a valuation of $1 billion, Interswitch was likely the sole unicorn in Africa at that time, achieving this milestone 18 years after its establishment in 2002, whereas its future counterparts typically reach this status within five years. The startup later announced a funding round of $110 million in May 2022, but did not disclose its valuation at that time. In the absence of any indication of a potential ‘down round,’ it can be inferred that Interswitch maintained its unicorn status.
eonojakaromah