Report: Africa Fintech Startups Raised $2 Billion in 2021

Africa’s fintech startups are reported to person raised $2 cardinal successful the past twelvemonth alone. This magnitude dwarfs the $231 cardinal that was raised successful the twelvemonth 2020. Nigerian startups proceed to relationship for the biggest stock of funds raised by the continent’s fintechs successful 2021.

2021 Has Highest Number of Reported Deals

The superior raised by Africa-based fintech startups successful 2021 changeable to $2 billion, a fig that is astir 10 times the $231 cardinal that was raised successful 2020, information from Crunchbase News has shown. The figure, which is besides the caller all-time high, dwarfs the erstwhile precocious of $773 cardinal that was recorded successful 2018.

In presumption of the fig of deals that were concluded, the Crunchbase data besides shows that 2021 has the highest fig of deals recorded successful a azygous twelvemonth — astir 198. This is an summation of astir 30% from the 155 deals that were recorded successful 2020, the information suggests. The 2021 deals are besides much than treble the 96 that were recorded successful 2017.

Image: Crunchbase News.

A further breakdown of the information suggests that Nigerian payments infrastructure elephantine Flutterwave is present 1 of the African continent’s astir valued fintech startups. The startup’s valuation of $3 cardinal follows Flutterwave’s palmy backing rounds that culminated with the announcement of a $250 cardinal superior rise successful aboriginal 2022. Still, successful its report, Crunchbase News clarifies that Flutterwave’s latest superior rise is excluded from the $2 cardinal that was raised successful 2021.

Main Sources for Africa’s Fintech Funding Activity

As the information besides shows, different Nigerian startup, Opay, was capable to apical Flutterwave’s rise aft it raked successful $570 million. The backing rounds springiness the Lagos-based mobile payments fintech startup a valuation of $2 billion.

Senegal-based Wave Mobile Money is 1 of the fewer non-Nigerian fintech startups that besides reported palmy backing rounds successful 2021. According to the data, the institution was capable to rise $200 cardinal successful 2021 frankincense giving it a valuation of $1.7 billion.

Meanwhile, different report said the main sources for Africa’s fintech backing enactment during the past twelvemonth were U.S. task superior (VC) funds, ample corporations, and Asian investors.

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