Kenya overtakes Nigeria in Startup Funding with $800 Million Raised

Kenya surpassed Nigeria as the top destination for startup funding in Africa in 2023, with about $800 million raised by its startups – according to ‘Africa: The Big Deal’, a research outfit that tracks African startup funding.

According to the report which listed Nigeria, Kenya, Egypt, and South Africa –  found that Nigeria dropped from the 1st place it held in 2021 and 2022 to the 4th place, as its startups raised only $410 million, which is less than half of what they raised in the previous two years.

Nigeria’s share of Western African funding fell to 68%, the lowest regional share among the Big Four since 2019.

The report also revealed that the Big Four accounted for 87% of all the startup funding in Africa in 2023, their highest share since 2019.

Out of the 500 startups that raised $100k or more on the continent, 357 were from the Big Four.

Kenya had the largest share of funding, 28% of the continent’s total, despite a 25% decline from 2022.

Kenya’s share of Eastern Africa’s funding increased from 86% in 2022 to 91% in 2023. 93 startups raised $100k or more in Kenya in 2023.

Egypt came second, with 48 startups raising $100k or more, and a 20% decline from 2022.

Egypt’s share of North African funding rose from 72% in 2022 to 95% in 2023, due to both the large fundraising of MNT-Halan, and the weak performance of Algeria and Tunisia.

South Africa was the only one of the Big Four to see its funding grow between 2022 and 2023, by 8%.

South Africa’s share of regional funding was the highest at 97%. 70 startups raised $100k or more in South Africa in 2023, totalling $600 million, or 21% of the continent’s total.