According to a report from Africa: The Big Deal, startups in Africa raised $645 million as of May 2023, through deals of at least $100,000. This is on record as the best May the ecosystem has ever experienced. This is a huge improvement compared to April 2023, which was a quiet month, just like January.
The top three sectors that received the most funding in May were fintech, e-commerce, and logistics. Some of the notable deals in May include:
Flutterwave, a Nigerian payments company, raised $250 million in a Series D round led by Tiger Global Management.
Chipper Cash, a cross-border payments company, raised $150 million in a Series C round led by Sequoia Capital.
Andela, a talent marketplace, raised $100 million in a Series E round led by SoftBank Vision Fund 2.
The strong funding activity in May is a sign of continued investor confidence in the African start-up ecosystem. This is despite the global economic slowdown and the ongoing war in Ukraine. The funding will help African startups scale their businesses and create jobs on the continent.