While not surpassing the record-breaking years of 2021 and 2022, Africa still witnessed over $5 billion in startup funding in 2023.

This indicates a maturing ecosystem with sustained investor interest.

Compared to the first half of 2022, funding in the first half of 2023 dipped, raising concerns about a potential slowdown. However, the second half saw a slight uptick, suggesting resilience.

Our analysis of the top 20 most funded startups in Africa reveals a fascinating story of innovation, ambition, and a continent brimming with potential.

Let’s delve into the key trends and insights:

Fintech Dominates: A Catalyst for Inclusion

With eight fintech companies in the top 20, it’s clear that financial technology is revolutionizing Africa.

MNT-Halan’s $400 million haul, including a historic $200 million from Chimera Investments, catapulted it to Egypt’s first unicorn status.

This signifies investor belief in fintech’s ability to bridge the financial gap, empowering millions of unbanked Africans with access to essential financial services.

Cleantech and Agritech: Building a Sustainable Future

Husk Power, Wetility, Nuru, and WeLight’s impressive funding demonstrates Africa’s commitment to clean energy solutions.

These startups are providing reliable, affordable power to off-grid and underserved communities, paving the way for a greener future.

Similarly, Victory Farms’ $35 million investment highlights the potential of agritech to transform Africa’s food systems, ensuring food security and empowering rural communities.

Beyond Fintech: A Diverse Landscape of Innovation

While fintech and cleantech steal the spotlight, the presence of e-commerce startups (Sabi and SAMANU), gaming startup (Carry1st), healthtech (Yodawy), and insurtech (Naked Insurance) showcases the breadth of African innovation.

These startups are addressing critical needs in their respective sectors, proving that Africa’s entrepreneurial spirit extends far beyond a single domain.

Challenges and Opportunities: The Road Ahead

Despite the impressive funding numbers, challenges remain.

Access to capital, particularly for early-stage startups, is still limited.

Building robust infrastructure, nurturing talent, and fostering a supportive regulatory environment are crucial to unlocking Africa’s full potential.

However, the opportunities are equally vast. A growing middle class, a vast untapped market, and a young, tech-savvy population create fertile ground for startups to thrive.

With continued support from investors, governments, and global players, Africa’s startup ecosystem can become the engine driving inclusive economic growth and positive social change.

The top 20 funded startups are just a glimpse into the incredible talent and potential brewing across Africa.

This year laid the groundwork for an exciting future.

With continued support for early-stage ventures, infrastructure development, and talent building, Africa’s startup ecosystem can become a global powerhouse, driving inclusive growth and positive change.

Here are the top 20 most-funded startups in Africa in 2023:

1. MNT-Halan – $400 million

Egypt’s MNT-Halan was the most funded startup after it raised $400 million in equity and debt financing from local and global investors in January.

A large chunk of the equity, about $200 million, was provided by Abu Dhabi–based Chimera Investments.

2. M-KOPA – $250 million

In May, M-KOPA, the asset financing platform that offers underbanked African customers access to “productive assets” and the ability to pay for them via digital micropayments, has secured more than $250 million in new funding.

The capital injection included $55 million in equity and over $200 million in debt.

3. Husk Power – $103 million

In October, Husk Power Systems, a cleantech startup operating in Africa and Asia, successfully raised $103 million in its Series D funding round to drive rural electrification and expand renewable energy services in the two regions.

4. Planet42 – $100 million

The Estonia-founded but South Africa-based startup announced a $100 million raise in February to scale operations across South Africa and Mexico.

5. MOOVE – $84 million

In 2023, MOOVE raised two rounds of funding- initially securing $8,000,000 to expand to Ghana and then $76,000,000 to strengthen its position on the global stage.

6. Wetility – $48 million

The South African-based platform raised $48 million in September 2023 to accelerate its expansion plans.

7. Nuru – $40 million

In July, Nuru raised a Series B round of $40 million to build the biggest mini-grid in sub-Saharan Africa.

8. Sabi – $38 million

Nigeria’s Sabi raised $38 million in Series B funding in May to enhance its technological infrastructure.

Frankfurt-based fintech investor CommerzVentures, Norrsken22, Fluent Ventures and Proof VC and pan-African early-stage investors CRE Venture Capital and Janngo Capital were some of the investors in this round

9. Lulalend – $35 million

In February, Lulalend, a South African digital lender catering to underserved small and medium-sized enterprises (SMEs), raised a $35 million Series B funding round to help it scale its business.

10. Victory Farms – $35 million

11. LemFi – $33 million

12. Peach Payments – $31 million

13. Nomba – $30 million

14. Carry1st – $27 million

15. SAMANU – $21 Million

16. WeLight – $20 million

17. Naked Insurance – $17 million

18. Yodawy – $16million

19. Yellow – $14 Million

20. Jetstream Africa – $13 million

Founded in 2022, Cynoia is dedicated to simplifying and streamlining collaboration within organizations.

Its innovative platform integrates a comprehensive suite of essential tools, from chat and video conferencing to email and calendar management, document handling, and project management.

Currently serving over 3,000 users across nine countries, Cynoia is poised for further expansion following this strategic funding round led by United Gulf Financial Services, 216 Capital Ventures, and Bpifrance.

The startup aims to capitalize on the burgeoning UEMOA markets, with Senegal and Ivory Coast identified as key growth targets.

“We are thrilled to have secured this funding, which will enable us to accelerate our expansion plans and make Cynoia the go-to collaboration platform for businesses across West Africa,” remarked Riahi, CEO of Cynoia.

“Our partners share our vision of empowering teams with a centralized platform that enhances collaboration and productivity.”

Cynoia’s expansion into UEMOA is a testament to its commitment to revolutionizing team collaboration across Africa.

With its innovative platform and strong leadership, the startup is well-positioned to significantly impact the region.

The three firms will receive $9 million, $10 million, and $8 million, respectively, from the Africa Growth Fund, bringing the total number of funds to five.

The Mastercard Africa Growth Fund has previously invested $2.2 million in Aruwa Capital Management and $5 million in Inua Capital.

Aruwa Capital was founded in 2019 and is one of a handful of African investment firms founded or headed by women.

The firm, which invests in women or businesses targeted at women, has invested in Fastizers, CrowdForce, Taeillo, Pngme, and Lifestores Pharmacy.

The Africa Growth Fund is an initiative of the Mastercard Foundation aimed at closing the financing gap in Africa’s impact investment space.

The fund, launched in December 2022, is a $200 million fund of funds and receives support from Investisseurs & Partenaires (I&P), ESPartners (ESP), Criterion Institute, Genesis Analysis, and Africa Communications Group.

These partners provide business development services to portfolio companies and help with fund advisory, communications, and diversity/inclusion advisory.

Samuel Akyianu, Managing Director of the Mastercard Foundation Africa Growth Fund, said:

“We are excited to welcome Chui Ventures, Vested World, and SME Impact Fund to our expanding family of investment vehicles. These strategic partnerships represent our ongoing commitment to fostering sustainable development in Africa through impactful investments.”

SME Impact Fund is a Tanzanian fund manager that targets investments in the country’s agricultural sector.

So far, it has made 44 investments worth over $15 million. These investments have reached 23,000 smallholder farmers in Tanzania and created more than 3,000 jobs.

This $2.5 million fund will focus on identifying and investing in the most promising early-stage startups with innovative solutions for climate, energy, and agriculture.

EchoVC, driven by the vision to become the Sequoia Capital for underestimated founders and markets, has established its presence with offices in Lagos, Nairobi, New York, and London.

The firm currently has a portfolio of nearly seventy companies, spanning a diverse range of sectors, including smart planet, healthcare, education, agriculture, climate, energy, AI, financial services, mobility, commerce, media, and connectivity.

The EchoVC Eco Pilot Fund I is designed to serve as a catalyst for very-early-stage enterprise development and innovation in climate, energy, and agriculture.

By targeting these critical sectors, the fund aims to foster sustainable solutions that not only address environmental challenges but also empower communities and contribute to an income uplift for all.

Through this pre-seed fund, EchoVC intends to identify and support the most promising startups with the potential to revolutionize climate, energy, and agriculture.

The firm’s investment strategy will focus on early-stage ventures that are poised to disrupt traditional industries and propel sustainable development across Africa and beyond.

The program aims to identify ten high-potential ventures and provide them with the necessary resources and network to accelerate their growth trajectory.

Over the course of 28 months, selected entrepreneurs will gain access to the Endeavor ScaleUp methodology, which encompasses expert mentorship, immersive business development training, fundraising support, and a strong peer network of seasoned entrepreneurs.

This comprehensive approach is designed to empower founders to overcome the challenges and seize the opportunities that come with scaling their businesses.

“Scaling high-growth companies is crucial for fostering a vibrant and thriving entrepreneurial ecosystem in East Africa,” stated Maryanne Ochola, Managing Director of Endeavor Kenya.

“The Endeavor ScaleUp Program is a catalyst for ambitious local founders to leverage our global expertise and curated services to propel their businesses to new heights.”

To be eligible for the first cohort, early-stage businesses must be headquartered in East Africa, operate with a tech or tech-enabled business model, and have a demonstrable track record of success.

Applicants must also have achieved a minimum of $500,000 in annual recurring revenue, demonstrate year-on-year growth of at least 50%, and be actively contributing to job creation or providing responsible financial services at scale.

The Endeavor ScaleUp Program is a testament to Endeavor Kenya’s unwavering commitment to fostering a thriving entrepreneurial landscape in East Africa.

The fund, backed by private investors and family offices, will continue to support innovative early-stage ventures driving growth and transformation in the region.

Established in 2018 under the leadership of Benoit Delestre, Samuel Touboul, and Cynthia Mandjek, Saviu Ventures has emerged as a pioneer in the Francophone African VC landscape.

With a team of seven experienced investors and operators strategically positioned across Abidjan, Dakar, and Paris, Saviu Ventures has established a deep understanding of the region’s entrepreneurial ecosystem and investment opportunities.

To date, Saviu Ventures has invested in 12 promising startups, primarily from Francophone Africa, including Anka, Julaya, Zanifu, Lapaire, and Paps.

With the first close of Saviu II, reaching EUR12 million (US$13 million), the firm is poised to continue its mission of nurturing and empowering the next generation of Francophone African entrepreneurs.

Aligned with its predecessor, Saviu II will focus on seed to Series A investments in early-stage African startups, with a strong emphasis on Francophone Africa.

The fund’s sector-agnostic approach allows it to identify and support innovative tech or tech-enabled ventures across diverse industries such as fintech, e-health, edtech, climate-tech, and e-commerce.

This substantial investment will fuel GoMetro’s ambitious plans to digitize heavy-duty commercial transport operations and refine its advanced fleet management platform across its key markets in the United Kingdom, European Union, United States, and South Africa.

The funding round was spearheaded by Zenobē, a renowned strategic investor specializing in financing and operating electric buses.

FutureGrowth Asset Managers also played a significant role in the round, demonstrating their confidence in GoMetro’s innovative approach to fleet management.

Joining the investment were existing investors 4 Decades Capital, Hlayisani Capital, Tritech Global, Kalon Venture Partners, ESquared Ventures, and Greg Fury, who have consistently backed GoMetro’s transformative vision.

This infusion of capital will serve as a catalyst for GoMetro’s mission to empower fleet operators with data-driven decision-making capabilities, enabling them to optimize resource utilization, reduce operational risks, and enhance customer satisfaction.

In the highly competitive transportation industry, where fleet owners face constant pressure to stay ahead of the curve, GoMetro’s solutions provide a decisive edge, propelling companies towards growth and sustainable success.

GoMetro’s Bridge, a cloud-based platform, plays a pivotal role in the electrification of buses and trucks, a sector poised for significant growth in the coming years.

With GoMetro Bridge, fleet operators gain access to a comprehensive suite of telematics-driven features, tailored to support their transition to all-electric fleets. Utilizing their own telematics data, GoMetro Bridge provides fleet owners with a comprehensive assessment of their readiness for EV adoption.

GoMetro’s Series A funding marks a significant milestone in the company’s journey, solidifying its position as a leading innovator in the fleet management industry.