African Fintech Startups Attracted the Most Funding in 2021

Rabat - Fintech (digitized financial services) startups in Africa raised a total of $2.3 billion in funding in 2021, more than double the funding raised by startups in all other sectors combined.

Rabat – Fintech (digitized financial services) startups in Africa raised a total of $2.3 billion in funding in 2021, more than double the funding raised by startups in all other sectors combined.

9 out of the 12 African startups raising more than $100 million in 2021 are operating in fintech, according to The Big Deal, an African startup news platform.

With 37% of all funding going to Nigerian startups, the West African nation is topping the list of countries attracting the most investments on the continent. South Africa comes in second place with 29% of total funds, with three South African startups locking three ‘mega deals’ — more than $100 million.

The positive progress on Africa’s fintech front is coupled with impressive results within other sectors. Beyond fintech, seven startups landed mega funding deals in 2021, up from three in 2019.

Startups from new sectors joined the race for mega deals in 2021. Startups operating in e-commerce and deep tech raised for the first time more than $100 million in 2021.

Among the many sectors within the African startup ecosystem, those operating in healthcare boasted the strongest growth, growing by seven folds between 2019 and 2021.

Africa’s startup ecosystem continues to grow and proliferate despite setups within subsectors. After taking a nosedive in 2020, education startups made a comeback to the funding race with two startups signing two mega funding deals in 2021.

One month into 2022, African startups have already secured half a billion dollars in investments, unlocking new opportunities, and allowing young business makers to experiment and grow their businesses.

The rise of fintech in Africa promises far more than profit-generating. Experts predict that fintech will do much to serve the continent’s underbanked populations, and extend financial services to Africa’s most remote regions, offering much-needed financial inclusivity.