The African Startups Have Raised $168.6 Million In 2018 Than Last Year

2018 is turning out to be the best year for African Startups in terms of funding. They have completed more than 118 deals their funding ratio has reached $168.6 million which successfully surpassed $167.7 million of last year. The results are revealed through a report by WeeTracker.

Best Year for African Startups

Renovaten / Via renovaten.com

2018 is turning out to be the best year for African Startups in terms of funding. Till July, there are more than 118 deals completed, and the startup funding has already reached $168.6 million which successfully surpassed $167.7 million of last year. The results are revealed through a report by WeeTracker. According to an estimate, the average funding is approximately four-fold increased by nearly $47.2 million which were raised in the first few months of 2017.

Fintech is considered to be one of the most important sectors in the market which is attractive to potential investors who are continued to focus on making huge payments and benefiting the banking industry as well.

Here is a list of some most funded startup industries in Africa, (Jan-Jun 2018):

Fintech industry has topped the list of most-funded startups which has completed 10 largest deals in 2018 and received approximately $95. It is actually more than half of the amount raised in the continent. Among its two most recognized deals, the ‘Cellutant’ which is a digital payment solutions organization and operating successfully in 11 more countries has raised more than $47.5. Another most funded platform ‘Branch’ is a microlending sector which has raised more than $20 million.

As compared to some startups in Asian Countries such as India, Pakistan or Indonesia, American startups are also positioning their businesses for success. If we talk about some home improvement companies such as Houzz, porch, Renovaten and modernize, we can estimate their quarterly income increased from 20% to 60% which has never been observed in previous years. But the fact is, the US startups are still not in a position to be judged according to the recent results revealed.

Nigeria is another best funding destination which has completed 29 deals so far. Kenya is also not behind in this race which has raised more than $82.8 million in funds received by different startups.

There are different reports released in Africa regarding startup funding, but their net amount is varying due to the different methodology. According to the research analysts, the Renovation, Fintech, and Agritech sectors are expected to reach new levels of success in the third quarter of 2019. The current stats will surpass the inflation rate and will be adjusted in all business sectors. In 2017, the total funding of Disrupt Africa’s was $195 while another organization Partech raised $560 million, they have a strong primary market in Africa but not headquartered in the continent.

There are many notable startups that have a significant share in the African business market. They are on the mission to maximize the benefits and removing the barriers to success.

Barriers to establish the business are everywhere, and the fact is, African business market is not also without any pitfalls. But still, the startups in Africa are hot right now and even beating European business markets by taking unprecedented steps. There are more than 1.3 billion opportunities in Africa especially for those who are looking to promote their services in the emerging business market.