African startups raised $621.8 mln in May, up 42% MoM

East Africa accounted for almost two-thirds of the funding raised by start-ups active on the continent last month, thanks in particular to the mega-rounds completed by two Kenyan startups.  

In May 2023, African startups raised $621.8 million in financing, up 42% compared to March 2023, according to TechCabal Insights. 

The same source reveals that compared to the April 2023 figure, May 2023 funding is up by 379%. A breakdown of the funds raised by the sub-region shows that startups operating in East Africa captured the bulk of the financing (64.6%) with $414.7 million raised. It was followed by Southern Africa (21.3%), West Africa (13.7%), and North Africa (0.4%). 

East Africa's predominant share is mainly due to the mega-rounds completed by two Kenyan start-ups: financing platform M-Kopa ($255 million) and off-grid solar solutions provider Sun King ($130 million).

A breakdown of fundraising by sector shows that fintechs lead the way with $442 million (68.9%), ahead of cleantechs (20.3%), and start-ups operating in the transport and logistics sector (6.1%).

Source: Ecofin Agency