In 2024, Africa minted two new unicorns, Moniepoint and Tyme, bringing the total number of startups valued above US $1bn to nine.
The past two years have been difficult for African startups. As macroeconomic challenges deter investors from generously pumping capital in the innovation ecosystem, more startups are restructuring their operations to align with the new state of affairs.
However, some startups are wading in billions of dollars in capitation – their investors confident that they are on the path to successful exits. This article zeroes down on African startups that have raised over US$1 billion and evaluating their journey as well as their probable destinies.
1. Interswitch (Nigeria)
Interswitch was founded in 2002 by Mitchell Elegbe. The startup provides digital payments and technology integration in the financial infrastructure. The fintech’s path to stardom began when it announced a US$200 million investment from Visa in November 2019.
The fintech is valued at US$1bn, achieving this status 18 years after being founded. Interswitch raised US$110m in May 2022. The startup is operational in 14 African countries, including Kenya, and has its headquarters in Lagos.
2. MNT-Halan (Egypt)
MNT-Halan is an Egyptian startup that aims to digitize traditional banking across parts of Africa and the Middle East to hasten financial inclusivity. It was established in 2018 by Mounir Nakhla. MNT-Halan saw its fortunes rise when it raised US$15 million in Series B funding in January 2020. In September 2021, this was followed by a US$120 million round.
In January 2023, it raised US$260 million in equity and US$140 million in debt. Its latest funding round in July 2024 saw investors pump US$157.5 million in the fintech company, affirming its place in the list of African unicorns when its valuation stood above US$1 billion.
3. Flutterwave (Nigeria)
Flutterwave was founded in 2016 by Iyinoluwa Aboyeji (former CEO), Olugbenga Agboola (CEO), and Adeleke Adekoya. The startup entered unicorn status after raising US$170m in its Series C round in March 2021. In February 2022, the fintech’s valuation tripled to over US$3 billion. This was after raising US$250 million in its Series D round.
The fintech provides a digital payments infrastructure for banks and businesses in over 30 African countries plus the US and Canada. It also records the highest valuation an African startup has garnered. Despite facing immense challenges with regulators in various markets, Flutterwave is undoubtedly on a clear path to exit.
5. Wave (Senegal)
Wave is a leading mobile service established in 2018 by Drew Durbin and Lincoln Quirk. The startup began its foray into Unicorn status in September 2021 after announcing a US$200 million raise in its Series A round. The startup saw its valuation grow to US$1.7 billion. Wave was a part of a remittance start-up called Sendwave, which was acquired by WorldRemit in 2020 for US$500 million.
Although there hasn’t been any funding since that year, Wave comfortably sits at the apex of Africa’s most funded startups – providing invaluable mobile money solutions in its headquarters Senegal as well as in Mali, The Gambia, Côte D’Ivoire, Uganda, and Burkina Faso.
4. OPay (Nigeria)
Opay is a Nigerian startup that provides digital banking solutions, offers services such as money transfers, bill payments, and debit cards to enable financial transactions for its users. Founded in 2013 by Zhou Yahui and Djxbazz, Opay rose to the enviable status of the most funded startups after announcing US$50 million in Series A funding in June 2019.
The big break came in November that year, announcing US$120 million in its Series B round. When Series C came in August 2021, Opay got US$400 million from investors. This was followed by an announcement that the startup had attained a valuation of US$2 billion. It operates in about eleven countries, eight being in Africa.
6. Andela (Nigeria)
Andela was founded in 2014 by Christina Sass, Jeremy Johnson, Ian Carnevale, Nadayar Enegesi, Iyinoluwa Aboyeji, and Brice Nkengsa. It operates a global job placement network for software developers. During its Series D round in January 2019, Andela raised US$100 million. The startup later announced a US$200 million raise in its Series E round in late September 2021. Currently, it is valued at US$1.5 billion.
7. Chipper Cash (multinational)
Chipper Cash is a fintech company that enables over five million users in Africa and the US to send and receive money across borders. It was founded by Ham Serunjogi and Maijid Moujaled in 2018. It began its ascent to unicorn status when they raised US$13.8 million after its Series A round in June 2020. The capital was doubled in November that year when investors raised US$30 million in series B.
In May 2021, Chipper Cash got US$100 million in their Series C round. The startup announced a US$150 million raise in Series C extension that November. The valuation then peaked to US$2 billion thus attaining unicorn status. However, the startup may have some difficulties navigating the future as it has not been able to raise funds since 2021. It would retrench staff in 2022, spiking doubt concerning the viability of its unicorn status.
The Newest Unicorns
8. Moniepoint (Nigeria)
Moniepoint was founded by Tosin Eniolorunda and Felix Ike in 2015. It has recently got unicorn status after its valuation attained a figure of over US$1 billion. This is due to the US$60 million the company raised in its Series C round. The startup aims to enable its customers to access banking services, process payments easily, and acquire loans and business management tools.
It raised US$5.5 million in its Series A round five years ago. The figure was multiplied to US$30 million in the Series B round in July 2021. Before entering the Series C round, Moniepoint garnered US$50 million in August 2022.
9. Tyme (South Africa)
Tyme is the latest entry to this list, owing to its US$1.5 billion valuation. It was launched in 2019 in South Africa by Tjaart van der Walt and Coen Jonker. On 17th December this year, Tyme secured US$250million in funding after its Series D round. The startup has an established presence in South Africa and Philippines, this time eyeing expansion into Vietnam and Indonesia.
Its journey to unicorn status began with a US$14 million capital in its Series A round back in 2019. After its Series B round, it raised US$110 million in February 2021, with an additional US$70 million in December that year. Last year, the startup with forays in digital banking, raised US$78 million before its Series C round. The company is backed by South African billionaire Patrice Motsepe’s African Rainbow Capital Investments.