African startups raised over $400m in equity in February

In February 2023, forty-one startups across Africa’s tech ecosystem publicly disclosed equity funding rounds in which they raised over $400 million cumulatively.

• In terms of deal volume, Nigeria led the way with 12 announced deals. Roughly 29% of equity funding deals in February involved companies in the country.

• And in terms of deal value, Egypt led the way as fintech ecosystem MNT-Halan alone accounted for ~50% of the total disclosed equity funding raised in the month.

• Finally, fintech (including identity & insurtech) was the top sector. It accounted for ~73% of the equity funding raised in the month, and roughly a quarter of all deals.

And here’s a look at the ten startups that announced the largest equity rounds in February:

• MNT-Halan, an Egyptian ‘super app’ turned ‘fintech ecosystem,’ raised $200M+ in equity from Dubai’s Chimera Investments as part of a larger round.
• Lulalend, a South African digital lending platform & digital bank targeting SMEs, raised a $35M Series B led by Lightrock, with participation from German development finance institution DEG, Triodos Investment Management, Women’s World Banking, the IFC, and Quona Capital.
• RapidDeploy, a South-African-born cloud-based, emergency response platform serving the American market, raised $34M led by Edison Partners.
• Smile Identity, a British/Nigerian identity verification & digital KYC platform, raised a $20 million Series B co-led by Costanoa Ventures and Norrsken22, with participation from Commerce Ventures, Courtside Ventures, Two Culture Capital, Valuestream Ventures, Intercept Ventures, Latitude, Future Africa, and 500 Fintech.
• Naked Insurance, a South African digital insurance platform that helps consumers insure their cars and homes, raised a $17M Series B led by the International Finance Corporation (IFC), with participation from German Development Finance Institution (DEG), Yellowwoods and Hollard Group.
• Yodawy, an Egyptian pharmacy benefits management and e-commerce platform, raised $16M in the first close of a Series B round co-led by Delivery Hero Ventures and Global Ventures.
• Planet42, a South African/Estonian vehicle financing, ‘rent-to-buy’ car subscription platform, raised $15M in equity co-led by Naspers and ARS Holdings, with participation from Rivonia Road Capital and others as part of a larger round.
• Mawingu, a Kenyan Internet service provider, raised a $9M Series B led by InfraCo Africa’s $6M, with E3 Capital and Dutch Entrepreneurial Development Bank FMO also participating with $1.5M each.
• Qotto, a Franco/West African provider of solar home systems in Benin, Burkina Faso, and Ivory Coast, raised an $8M Series A (equity + debt) led by the IBL group, with participation from the Off-Grid Energy Access Fund, Cordaid, and others.
• Sendmarc, a South African security platform offering email protection from phishing/spoofing attacks, raised a $7M Series A led by Atlantica Ventures, with participation from Allan Gray, E-Squared Ventures, Fireball Capital, Endeavor Catalyst, 4Di Capital, Endeavor Harvest, Alpha Private Capital, and Kalon Venture Partners.