Fintech remains the most funded sector
Of all the sectors, fintech remains the most funded sector in Africa.
According to the report, about (32%) of the funding went to fintech
startups. This share is higher than in previous years, where most of
the fintech funding was raised in H2 (89% in 2019 and 76% in 2020).
Cumulatively, African startups have already raised $2.25 billion in
the first four months of the year. This is 2.5 times the amount raised
by the end of April 2021, 5 times in 2020, and 8 times in 2019.
According to Max Cuvellier, GSMA’s head of mobile for development
(M4D), “There’s no denying that the context is difficult, and between
inflation, food insecurity, bear markets, supply chain issues, and
more, African start-ups will be impacted in their growth and capacity
to raise.”
However, the third quarter (Q3) will be decisive, especially given how
strong it was last year, but there is room for optimism. Let’s hope
that future figures don’t contradict me too much, he said.
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