Here are Africa’s biggest startups based on valuation

Investment in African startups surpassed $2 billion last year, rebounding to levels seen before the pandemic. This resurgence, however, presents a complex picture, with indicators suggesting that 2025 will likely continue the cautious patterns established over the preceding two years. This analysis explores the landscape of venture capital in Africa, highlighting both challenges and opportunities for emerging technology companies.

Navigating a Shifting Investment Landscape

A significant decrease in substantial deals, reflecting a broader global contraction in venture capital since the 2020-2021 boom, has driven both local and international investors to prioritize sustainable business models and demonstrable paths to profitability. This revised approach marks a notable shift in the African tech ecosystem.

Impact on Startups and Strategic Pivots

This transition has created difficulties for well-funded startups that did not meet these new investment criteria. Several prominent closures have occurred, including mobile commerce platform Copia and Gro Intelligence, an agri-focused data analytics firm. Both companies had secured over $100 million in venture funding, with Gro Intelligence achieving an $850 million valuation at its last funding round. These closures highlight the increased pressure on even well-capitalized ventures.

Historically, startup failures in Africa were largely concentrated in the pre-seed and Series A stages. However, recent shutdowns, such as Ghanaian fintech Dash and Nigerian biotech 54gene in 2023, indicate a pivotal moment in the ecosystem. Even startups in growth and later stages now confront heightened uncertainties. This evolution necessitates a reevaluation of risk and sustainability across the board.

In response to the challenging economic climate of 2024, some companies have opted for strategic adjustments rather than ceasing operations. For example, B2B e-commerce leaders Wasoko and MaxAB merged their businesses to preserve capital and optimize resources. By combining their industry expertise, they aim to navigate the current economic headwinds more effectively. This proactive approach underscores the adaptability within the African tech sector.

Conversely, certain companies like Moniepoint, Moove, and TymeBank have experienced substantial growth and attracted significant investments from major players such as Uber, Google, and Nubank. These companies have demonstrated robust growth metrics and profitability, positioning them as leaders in the evolving market.

Dual Realities of the Tech Ecosystem

These contrasting developments illustrate the dual nature of Africa’s tech landscape in the post-boom era. It is characterized by both increasing obstacles and remarkable resilience. The ability of companies to adapt and innovate will be crucial for navigating this complex environment.

Within this context, established unicorns and emerging “soonicorns” continue to command attention. Their successes and challenges are not only indicative of the continent’s considerable potential but also significantly influence the direction of its tech ecosystem. The performance of these leading companies sets the tone for broader industry conversations and trends.

Against this dynamic backdrop, it is an opportune moment to spotlight these billion-dollar enterprises and the promising ventures on track to potentially join their ranks. Understanding these companies offers valuable insights into the future trajectory of African tech.

African Unicorn Startups

Flutterwave (2021) — $3 Billion: Established in 2018, Nigerian fintech firm Flutterwave delivers payment solutions for individuals and enterprises across Africa and facilitates transactions with international markets. It has secured over $475 million in funding, including a $250 million Series D round, with investors such as Tiger Global, Avenir Growth, and DST Global. Flutterwave’s robust platform underpins a significant portion of digital transactions across the continent.

OPay (2021) — $2 Billion: Launched in 2018 as a spin-off from internet company Opera, OPay offers a broad spectrum of digital financial services. These include mobile payments, savings, lending, and bill payments, accessible through an agent network and mobile application. OPay has accumulated over $500 million in funding, including a $400 million Series C round, with backing from SoftBank Vision Fund 2, Sequoia Capital China, and Redpoint China, among others. OPay’s comprehensive service suite caters to a large user base across Africa.

Wave (2021) — $1.7 Billion: Based in Senegal, Wave is a fintech company providing affordable mobile money services, aiming to enhance banking accessibility and affordability in Francophone Africa. Founded in 2018 as a spinoff of Sendwave, Wave raised $200 million in a Series A funding round led by Stripe, Sequoia Heritage, Founders Fund, and Ribbit Capital. Wave’s focus on low-cost services addresses a critical need in its target markets.

Andela (2021) — $1.5 Billion: Founded in 2014, Andela operates as a global talent marketplace connecting companies with vetted, skilled technology professionals, including software engineers and product managers. This recruitment platform has raised over $380 million, encompassing a $200 million Series D round, with investors such as SoftBank, the Chan Zuckerberg Initiative, and Spark Capital. Andela plays a key role in bridging the global tech talent gap.

TymeBank (2024) — $1.5 Billion: South African digital bank TymeBank delivers transactional accounts, savings options, and cash advances, primarily targeting lower-income individuals and businesses. Tyme Group, the parent company, secured $250 million in a Series D round in February, spearheaded by Nubank. Investors also include M&G Catalyst Fund, Tencent, African Rainbow Capital, and Norrsken22. TymeBank’s focus on financial inclusion is driving its growth and impact.

Chipper Cash (2021) — $1.25 Billion: Chipper Cash facilitates cross-border money transfers across African nations and offers card and investment products. It has raised over $300 million, with investors including FTX, Ribbit Capital, Bezos Expeditions, and SVB Capital. Chipper Cash’s platform simplifies and streamlines financial transactions across the continent.

Interswitch (2019) — $1 Billion: Established in 2002, Nigerian payments infrastructure provider Interswitch delivers integrated payment and transaction solutions across Africa and various channels. The fintech company has raised over $300 million, including a $200 million round led by Visa. Additional investors include Helios Investment Partners and Leapfrog. Interswitch is a foundational player in Africa’s digital payment ecosystem.

MNT-Halan (2023) — $1 Billion: Egyptian financial super app MNT-Halan, founded in 2017, offers a comprehensive suite of services including digital lending, payments, e-commerce, and buy now, pay later solutions, targeting underbanked and unbanked populations. MNT-Halan has secured over $500 million in equity and debt financing, with investors like Chimera Investments, Apis Growth Fund II, and Development Partners International. MNT-Halan’s diverse offerings address multiple financial needs for its target demographic.

Moniepoint (2024) — $1 Billion: Nigerian fintech Moniepoint, founded in 2015, provides tailored financial services for businesses and individuals across Africa, including digital banking, payments, credit, and business management tools. Moniepoint raised $110 million in Series C funding. Its investor base includes QED, Development Partners International, Google’s Africa Investment Fund, and Lightrock. Moniepoint’s business-centric approach has fueled its rapid expansion.

At the beginning of 2024, Moniepoint and TymeBank were valued at $850 million and $965 million, respectively, positioning them as leading candidates for unicorn status in Africa. Both companies successfully achieved this milestone during the year, further solidifying the growth potential within the African tech market.

Below is an overview of other African startups poised to potentially reach unicorn valuation in the coming years, based on their most recent funding rounds. These companies are closely watched as potential future unicorns.

African “Soonicorn” Startups

PalmPay — $800 Million to $900 Million: Launched in 2019, Nigerian fintech PalmPay enables users to conduct money transfers, settle bills, purchase airtime, and access credit services. PalmPay has raised $140 million across two funding rounds, including a $100 million Series A in 2021. While the company has not officially confirmed its valuation, sources suggest its Series A propelled it to between $800 million and $900 million. Investors include Transsion Holdings, Chuangshi Capital, Chengyu Capital, and AfricInvest. PalmPay is rapidly expanding its financial service offerings and user base.

Moove — $750 Million: Mobility fintech Moove, established in 2020, provides revenue-based vehicle financing to gig economy workers, facilitating access to new vehicles for ride-hailing, logistics, and delivery services. Operating across numerous cities in Africa, Europe, the Middle East, and Asia, Moove has raised over $409 million in funding. Investors include Uber, which led its recent $100 million Series B round, Mubadala Investment Company, Speedinvest, and Stride Ventures. Moove is addressing a critical financing gap in the mobility sector.

Yassir — $600 Million to $800 Million: Yassir operates a super app delivering on-demand services including ride-hailing, food and grocery delivery, and financial services across six countries. The Algerian startup has raised nearly $200 million from BOND, Y Combinator, and Stanford Alumni Ventures. Yassir’s diverse service offerings and regional reach position it for significant growth.

Kuda — $500 Million: Nigerian digital-only bank Kuda, founded in 2019, offers a suite of financial services, including banking, savings, and lending, along with smart budgeting and spending features. Since inception, Kuda has raised over $90 million from investors, including Target Global and Valar Ventures. Notably, it secured $55 million in a Series B funding round at a $500 million valuation. Kuda is focused on providing accessible and user-friendly digital banking services.

Wasoko/MaxAB — Approximately $500 Million: Kenyan B2B e-commerce platform Wasoko and its Egyptian counterpart, MaxAB, collectively operate Africa’s largest digital platform for informal retail, connecting buyers and sellers of fast-moving consumer goods. According to VNV Global, a Wasoko investor, their merger resulted in a combined valuation of approximately $500 million. Both startups have collectively raised nearly $240 million (up until Series B) from investors including Tiger Global, Silver Lake, British International Investment, and Avenir Growth. This merged entity is a dominant force in African B2B e-commerce.

Clickatell — Approximately $500 Million: South African-born startup Clickatell operates in the chat commerce domain, providing a platform enabling businesses to connect, interact, and transact with customers via popular messaging channels like SMS and WhatsApp. Clickatell secured $91 million in a Series C funding round in 2022, bringing its total funding to over $100 million. Investors include Sequoia Capital, Arrowroot Capital, and Endeavor Global. Clickatell is at the forefront of conversational commerce solutions.

M-KOPA — Approximately $500 Million to $600 Million: Founded in 2011, Kenyan lender M-KOPA provides affordable access to smartphones, electric motorcycles, and digital financial services such as loans and health insurance across sub-Saharan Africa through its pay-as-you-go model and digital micropayments. M-KOPA has raised over $500 million in combined debt and equity funding. Investors include Sumitomo, Lightrock, Standard Bank Group, and the International Finance Corporation. M-KOPA is driving financial inclusion and access to essential products.

Yoco — $400 Million to $500 Million: Yoco provides payment solutions and business tools like point-of-sale card machines and online payment gateways designed for small and medium-sized enterprises. The South African fintech has raised over $107 million, including an $83 million Series C round. Investors include Dragoneer Investment Group, Breyer Capital, HOF Capital, and 4DX Ventures. Yoco is empowering SMEs with essential payment infrastructure and business tools.

Onafriq — Approximately $300 Million to $500 Million: Onafriq, formerly MFS Africa, operates the most extensive digital payments hub in Africa. It connects millions of mobile money wallets across numerous African countries, facilitating cross-border payments, remittances, and financial integrations for individuals and businesses. The South African fintech has raised over $300 million in funding, including a $100 million Series C round. Investors include AfricInvest, CommerzVentures, and Admaius Capital Partners. Onafriq plays a critical role in enabling seamless digital payments across the African continent.