Kenyan startups raised nearly $1 billion in the first half of 2022, surpassing what the country raised in all of 2021. Data shows that among the big four in Africa – the quartet that includes Nigeria, Egypt and South Africa, and which receives most venture capital funding on the continent – Kenya has so far seen the strongest growth in funding secured this year.
This is after the East African country, through 76 deals, raised $820 million in the first half of the year, according to the Big Deal database. That’s almost double the funding secured by startups nationwide last year.
The Big Deal 2021 report puts funding secured by Kenya last year at $411m, while Partech data shows the country raised $571m. In both cases, Kenya ranked fourth in Africa in terms of funding received.
However, the latest Big Deal data, which only takes into account publicly disclosed deals, shows the country is currently second only to Nigeria, which has so far signed 160 deals, attracting $864 million in capital funding. -risk. As the top destination for venture capital investment in Africa last year, Nigeria raised nearly $1.8 billion, triple the funding secured by Kenya.
Egypt and South Africa are third and fourth, having raised $538m (71 deals) and $392m (53 deals) respectively. Data from various sources shows that South Africa raised around $900 million while Egypt raised $600 million last year.
The quartet accounted for 87% of financing raised in Africa in the first half of this year.
Mega deals in Kenya
The growth of venture capital funding in Kenya has been spurred by an increase in the number of deals and mega-rounds – which are deals equal to or greater than $100 million. Two notable mega-rounds that unfolded in late June in Kenya are Sun King’s $260m Series D funding and Wasoko’s $125m Series B funding. Sun King is a solar supplier operating in Africa and Asia, while Wasoko is a B2B retail and e-commerce platform.
Kenya’s growth is remarkable given that it is soaring at a time when venture capital funding continues to slow across the globe.
On the other hand, the increased deal flow in Kenya is indicative of growing venture capital funding in Africa. Data from The Big Deal shows that by the end of June, Africa had raised $3 billion, double what it had raised in the same period last year – although it a drop in the ocean compared to other parts of the world.
“If we look at the year-over-year (YoY) change in quarterly funding (comparing Q2 2022 to Q2 2021), Africa is simply the only region that has continued to grow year over year. on the other,” Max Cuvellier of The Big Deal said in an article about the funding. in Africa.
Fintechs continue to attract the most funding on the continent. Africa is considered the second fastest growing global payments and banking market after Latin America, according to this McKinsey study.