While many startups in Africa have to bootstrap themselves until they secure funding from venture capitalists and other investors, some have managed to raise millions of dollars.
By Michael Akuchie
For many years, Africa has been regarded as a largely untapped region in terms of technological advancements. Fortunately, various startups have begun to spring up across the continent, each promising a unique solution to a specific problem.
Whether it is Africa’s financial inclusion gap where over eighty million adults do not have a bank account or the region’s inferior healthcare sector, several startup companies led by ambitious people have emerged with tech-driven solutions.
Africa has recorded significant growth in the presence of tech startups, with a 2024 report published by Statista revealing that Nigeria (3,360), Egypt (2,112), and Kenya (1,000) recorded the highest number of startups this year.
It is common for startups to seek investment to realise their respective goals. While many startups in Africa have to bootstrap themselves until they secure funding from venture capitalists and other investors, some have managed to raise millions of dollars, sometimes in the hundreds.
Afrocritik highlights the top five African startups that made headlines in 2024 for raising the highest funding, presented in ascending order.
Roam
Roam, a Kenya-based EV company, announced $25 million in funding through equity and debt earlier this year. The startup plans to use the funds to scale its operations across Africa, as enthusiasm for EV adoption on the continent continues to grow.
In a press statement, Roam outlined how the funds would be utilised. It stated that a significant portion would be allocated to increasing the production capacity of its Roam Park facility, which manufactures electric motorcycles.
Another portion of the funds would be directed toward advancing its research efforts and streamlining its local and global supply chain networks.
To date, the startup has achieved a major milestone by helping Africa mitigate over 120,000 tonnes of carbon emissions, marking significant progress in its mission to facilitate the continent’s transition to clean energy for mobility.
SunCulture
SunCulture, another Kenya-based startup providing farmers with solar-powered irrigation solutions and other agritech tools, stood out as one of the African startups that received the most funding in 2024.
The agritech startup secured $27.5 million in Series B funding, which it plans to use to expand its operations and develop new products for farmers. It also intends to explore new markets across Africa with the funding.
In addition to offering agritech tools, SunCulture provides farmers with flexible financing options.
The company’s impact has been significant since its inception, currently accounting for 50% of the solar irrigation systems used by smallholder farmers in Sub-Saharan Africa.
By addressing long-standing challenges such as high labour costs and inadequate water access, the startup has enabled farmers to significantly increase their crop yields.
Spiro
Spiro, one of Africa’s largest electric vehicle manufacturers, successfully raised $50 million from the African Export-Import Bank (Afreximbank).
Operating in six African countries—Nigeria, Benin, Togo, Kenya, Uganda, and Ghana—the startup is among the few spearheading EV adoption in a region still heavily reliant on fossil fuels for transportation.
Spiro plans to utilise the funding from Afreximbank to expand its fleet of electric motorcycles and battery-swapping stations, where riders can exchange a depleted battery for a fully charged one. The company already boasts one of the largest EV fleets, with over 14,000 electric bikes.
It claims to have facilitated more than 9 million battery swaps since its inception. With this significant funding, Spiro is driving progress in a relatively young EV market that holds immense growth potential.
M-Kopa
M-Kopa, a Kenya-based fintech startup focused on making smartphones affordable to Africans, raised $51 million in debt financing from the International Development Finance Corporation (IDFC).
The startup plans to use the funding to accelerate its mission of providing more Africans with budget-friendly smartphones, thereby increasing the continent’s digital connectivity, particularly in rural areas. M-Kopa already operates in Nigeria, Kenya, Uganda, and Ghana.
The startup has gained popularity in its various markets for its Pay-As-You-Go model, which allows clients to make subsequent payments after an initial deposit.
As inflation continues to drive up the cost of foreign goods, particularly electronics like televisions and smartphones, startups like M-Kopa are enabling countless people to own smartphones without breaking the bank.
Moove
Moove is a Nigerian mobility startup dedicated to providing vehicle financing for transport business owners operating across various industries, including ride-hailing, logistics, and mass transit.
In March 2024, Moove secured a massive $100 million Series B funding, which it plans to use to expand its operations into untapped markets. The startup currently operates in thirteen cities across six countries: Nigeria, India, Ghana, the UK, the UAE, and South Africa.
Moove employs a two-step business model. First, it acquires fleets of vehicles and sells them to interested drivers. The vehicles include internal combustion engine (ICE) models from manufacturers such as Toyota and Suzuki, as well as electric vehicles (EVs) from Tesla.
The second step involves offering drivers flexible financing options. Drivers’ credit ratings are carefully assessed, with approval granted only to those with high ratings. With this significant investment secured, Moove is one step closer to achieving its vision of entering new markets.
Michael Akuchie is a tech journalist with four years of experience covering cybersecurity, AI, automotive trends, and startups. He reads human-angle stories in his spare time. He’s on X (fka Twitter) as @Michael_Akuchie & michael_akuchie on Instagram.
Cover photo credit: ConnectingAfrica