Kenyan startup market ranked 2nd in Africa with Ksh.223B funding secured since 2019

The Kenyan startup ecosystem has emerged second in the continent in terms of the total funding secured since 2019.

With over Ksh.223 billion ($1.9 billion) funding raised from global investors in the past three years, Kenyan startups account for 19 percent of the capital investors have channeled to the continent.

Data from Africa: The Big Deal database shows that of these rounds, 140 deals raised over Ksh.112 million ($1 million) each.

At the close of this year’s first quarter, data on the funding African startups had raised in comparison to last year’s first quarter (over two times more) projected a promising 2022.

The Kenyan startup ecosystem is among Africa’s ‘Big Four’ markets, which also comprise Nigeria, South Africa and Egypt.

Nigerian startups are leading the continent after raising a staggering $3.5 billion over the past 3 years. 

The country made 192 over $1 million deals during this time and accounts for 36 percent of all the funding Africa received.

Nigeria is leading the pack with an average of one over $1 million deal announced every week since 2019, and $20 million raised weekly on average.

Overall, ‘The Big Four’ have raised 83 percent of all the funding the continent has received since 2019.

Also worth noting is that fintech is the most popular sector for investors eyeing the African markets, with fintech start-ups breaking the $1 billion funding barrier in 2021.  

Additionally, fintechs account for 38.7 percent of the total investment channelled into the continent this year.

Just last month, we reported that eight firms had so far raised Ksh.20.2 billion this year.

Kenya and Uganda were early this month ranked among 15 African countries whose financial, health and climate-linked start-ups have the biggest impact potential in Africa.

Big names in venture capital such as America’s Tiger Global and Harlem Capital; Japan’s SoftBank; Kepple Africa; Samurai Incubate Africa; Australia’s TEN13 and China’s Sequoia Capital have come up in African startups funding stories in the last two years.

According to some experts, the recent fintech surge across the region is down to the fact that the sector quashes the poor physical infrastructure challenges which have marred business activities in Africa for years.