African Fintech Startups Raised $1.45 Billion in 2022 — Sector’s Share of the Continent’s Total Funding Drops – Fintech Bitcoin News
As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.
[ad_1] Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
Africa’s fintech sector has seen a substantial amount of growth in the past decade, with the continent’s startups raising a total of $1.45 billion in 2022, according to a new report from venture capital firm Partech.
The report, which was released on Tuesday, found that fintech startups in Africa raised $1.45 billion in 2022, a decrease from the $1.9 billion raised in 2021. This drop in funding was attributed to a decrease in the sector’s share of the continent’s total funding, which fell from 19% in 2021 to 16% in 2022.
Despite the decrease in total funding, the report found that the number of fintech startups in Africa receiving funding has grown steadily over the past few years. In 2022, a total of 127 fintech startups raised funding, up from 107 in 2021 and 68 in 2020.
The report also highlighted the increasing importance of venture capital in the African fintech sector, with venture capital firms now accounting for a majority of the funding raised by fintech startups in Africa. In 2022, venture capital firms made up 54% of the total funding raised by African fintech startups, up from 41% in 2021.
In terms of the most active investors in the African fintech sector, the report found that the top three venture capital firms were Partech, TLcom Capital, and Quona Capital, who together accounted for over 40% of the total funding raised by African fintech startups in 2022.
The report also highlighted the increasing role of international investors in the African fintech sector, with the number of international investors in African fintech startups growing from 27 in 2021 to 38 in 2022.
Overall, the report paints a positive picture for the African fintech sector, with the number of fintech startups in Africa continuing to grow and the sector receiving a greater share of venture capital funding. While the sector’s share of the continent’s total funding has decreased, the report suggests that this is due to the increasing number of other sectors, such as edtech, healthtech, and agritech, competing for venture capital funding.
Despite the decrease in total funding, the report shows that the African fintech sector is still an attractive destination for venture capital investment and that the sector is well-positioned to continue to grow in the future.
[ad_2] Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
Source link
