Africa’s FinTech startup companies have, by a wide margin, absorbed much of the funding coming into the continent’s tech ecosystem. This niche gained 63 percent, or $3 billion, of the funding that went to African startups in 2021. And according to a report from TechCabal’s funding tracker, FinTechs continued this good show in 2022, seeing that it has attracted fundings of over $660 million as of June 2022.
However, recent data from CB Insights reveals that funding has significantly dropped in the third quarter of this year; that is from July – September.
By the numbers
According to the CB report of the Q3 Insights State for Fintechs in Africa, startups raised $161 million in Q3 2022. This figure is significantly lesser than Q1 and Q2 investments of $369 million and $383 million, respectively.
- The number of closed deals also dropped from 74 in Q1 2022 and 61 in Q2 to 43 in Q3 2022.
The big picture
The decline in investments in the period under review doesn’t conclusively translate to a drop in Africa’s attractiveness to investors as in the Q4 FinTechs have recorded mega deals including Moneyfellows $31 million raise and Yassir’s $150 million deal.
- To buttress this claim by tech observers, global findings of FinTech fell by 38 percent quarter-over-quarter (QoQ) to hit $12.9 billion matching Q4 2020s level.