IN June 2023, African tech startups raised an impressive $126.2 millio
n through 25 fully disclosed funding rounds. Despite the significant figure, this amount reflects a notable 70 percent decrease compared to the previous month, where African startups secured $426.2 million. Furthermore, it marks a substantial 79 percent drop from May 2023, when the total funding reached an impressive $621.8 million.
The West African region emerged as a clear frontrunner, accounting for a whopping 72 percent of the total disclosed
funding with a substantial $89.9 million raised. Year on year, West African startups displayed a remarkable 13 percent increase
in funding rounds.
In terms of sectors, cleantech startups (organisations that are making crucial adva
nces in reducing adverse environmental impacts) took the lead for the first time, securing 41 percent of the total funding with an impressive $52.3 million. Healthtech, logistics, and fintech followed closely, with $34.3 million, $11.5 million, and $10.6 million in raises, respectively.
Among the top five disclosed deals of the month, Senegalese cleantech startup Africa REN secured a remarkable $35 million syndicated debt raise, claiming the first spot. Nigerian fintech firm Helium Health was close behind with a Series B raise of $30 million. South African cleantech company Yellow Africa secured a Series B raise of $14 million, while Nigerian fintech startup Fairmoney and Kenyan logistics firm Peach Cars raised $5.4 million and $5 million, respectively.
It is important to note that the data only includes funding deals announced in June 2023, and some raises may have been conducted earlier but publicly disclosed during this month. Additionally, the data exclud
es estimated grants from accelerators, which account for a combined $4.3 million in grants received by 43 African startups, including recipients of the Google Black Founders Fund, the CcHub-Mastercard Edtech Fellowship, and the Norrsken Accelerator Batch 2023.
Despite the fluctuations in funding amounts, African tech startups continue to show resilience and attract substantial investments, particularly in
the cleantech sector, signalling a promising future for the continent’s entrepreneurial ecosystem.
