African Startup Ecosystem Records Best May Fundraising Ever with $645 Million Raised

Startups in Africa achieved a significant milestone in May 2023 by raising a total of $645 million through deals worth at least $100,000. This marked the best month of May ever recorded in the African startup ecosystem highlighting the continued growth and success of the startup scene in the region.

In contrast to the relatively quiet months of April and January 2023, May 2023 showcased a remarkable improvement in fundraising for African startups. Statistics indicate that only $129.8 million was raised in April 2023 reflecting a significant 68% decline compared to April 2022 and also less than the funds raised in April 2021.

The first quarter of 2023 witnessed a funding drought for African startups when compared to the notable month of February 2023. In March 2023, startups raised a mere $66 million, marking it as the worst month in 2.5 years since August 2020. Additionally, this was the first time since 2020 that the monthly funding amount raised by African startups fell below the $100 million mark.

The total funding raised by African tech startups in February 2023 amounted to $700 million, which marked the lowest amount the month had seen in the past two years. This figure represented a 29% decline when compared to the funding raised in February 2022.


The significant contributions to the May 2023 funding numbers for African startups came from two energy companies and one fintech company:

• M-Kopa raised a combination of $200 million in debt and $55 million in equity
• Sun King secured $130 million
• TymeBank received $78 million in a pre-Series C funding round

East African startups emerged as frontrunners in terms of funding securing approximately $414.7 million, which accounted for 64.6% of the total funding raised during the period. The notable contributions to this regional success were M-Kopa’s raise of $255 million and Sun King’s recent funding round of $130 million.

South African startups secured a notable amount of funding, raising $129.1 million, which accounted for 20.7% of the total funding during the period. The leading contributor to this figure was TymeBank, a digital bank, which successfully raised $77.8 million in a pre-Series C funding round.

West African startups, with a focus on Nigeria, secured $58.1 million, accounting for 9.3% of the total funding during the given period. A significant contributor to this figure was Sabi, a logistics startup, which raised $38 million in a Series B funding round.

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