Africa accounted for 51% of total MEAPT funding, and 26% of the region’s deals, however, funding and deals fell by 54% and 50% year-on-year respectively, the report wrote
The MEAPT region’s startup landscape conditions saw a significant contraction in the first half of 2023, with startup financing falling 64% compared to H1 2022 to hit $1.879 billion through 530 deals, according to the latest report by MAGNiTT.
Africa accounted for 51% of total funding in the Middle East, Africa, Pakistan, and Turkey (MEAPT) region, and 26% of the region’s deals, however, funding and deals fell by 54% and 50% year-on-year respectively, the report wrote.
Funding in the region reached its lowest recording during Q2 2023, contracting to $619 million compared to $1.26 million in Q1 2023 and Q1 2022’s record $3.54 million.
The top 3 industries funded in Africa were FinTech with 29% of the total deal share, ecommerce/retail saw 12%, and logistics and transportation received 11%. Funding in Africa overall fell by 54% compared to H1 2022 to hit $951 million so far this year.
Egypt’s venture capital firm Flat6Labs was the MEAPT region’s top ten investors with 26 investments, with 19% of investments directed towards North Africa. USA’s 500 Global was second with 21 investments, followed by Nigeria’s ARM Labs Lagos Techstars Accelerator with 13 investments.
Egypt fell 75% regarding the number of deals made in H1 2023, recording 23 deals. Nigeria fell by 54% but retained its position as the top country in Africa in terms of deals, followed by Kenya with a contraction of 18%.
However, Egypt was named as the top country in terms of funding on the continent, receiving a total of $305 million driven by a $260 million deal by FinTech company Halan which accounted for 14% of the region's total funding. MEGA deals still contributed to 29% of MEAPT's funding.
Halan topped the list of startups with the most significant funding deal, followed by South Africa’s Tymebank which received $78 million, and Kenya’s M-Kopa’s $55 million deal.
The first half of the year saw MEAPT startup exits were down by 16% annually, with Africa headquartered startups capturing 27% of total regional exits. The region saw 3 mega deals in the first 6 months of the year.