With the release of our FY2022 Africa FinTech Venture Investment Report, we take a look at FinTech as one of the major drivers of funding in Africa. Contact our sales team to learn more about this report and access the underlying data.
FinTech has been the focal point of Africa’s investments in 2021 and 2022, after an 11-fold rise in funding from 2020. The sector remained the highest funded and most transacted in the continent despite a 26% decline in funding. To this avail, FinTech funding in Africa aggregated $1,408M in 2022, crossing the $1Bn mark for the second year in a row. The retreat was mainly backed by a 72% decline in MEGA deal value. The decline in $100M+ deals came through following Q1 which was the top performing quarter in 2022, as geographies of the continent started absorbing the impact of the global geopolitical tensions, macroeconomic challenges and liquidity constraints. However, excluding the value of MEGA deals, FinTech funding in Africa rose by 71% year-on-year.
In 2022, FinTech was responsible alone to bring 50% of the capital deployed in Africa. This being said, Nigeria maintained its lead at all fronts. The country which closed the sole two FinTech MEGA deals in 2022, namely Flutterwave’s $250M and Interswitch Group’s $110M, captured 41% of Africa total FinTech deals and 46% of its capital deployed in the sector. A rising interest in the industry was seen in Egypt, South Africa, Kenya, Ghana and Uganda which are seeing governmental initiatives aiming at supporting the status of tech industries.
While the sub industries pool of Financial Technologies was getting diversified over the course of the past few years, Payment Solutions came out as the highest contributor to FinTech, despite a 24% annual retreat in capital deployed. Digital payments contributed to 42% of FinTech’s total funding in Africa in 2022, keen on being the sub industry backing the two $100M+ closed. Lending and Cryptocurrency improved their ranking stats with 304% and 206% yearly increases in capital deployed respectively in 2022.
What’s In The Report?
This yearly report provides a comprehensive overview and a deep dive into the overall EVM region delving deeper into the African Fintech venture capital and funding investment space and includes the following:
• A 5-year analysis of Fintech venture funding evolution, with a focus on 2022 country and industry performance benchmarks
• A 2-year quarterly Fintech funding breakdown and comparison of Emerging Venture Markets and Africa region
• Top 20 investor ranking, together with the investor type and HQ analysis of all investment firms in the EVM and Africa
• Top 20 startup Fintech funding rounds that were closed during the analyzed period, as well as the ticket size split of the entire deal flow
• Fintech exit evolution across all Emerging Venture Markets and the Africa
Who will benefit from the report?
This report is ideal for investors tracking startup activity, consultants looking to identify technology innovation trends, as well as government entities searching for investments.
This report was created with data from MAGNiTT, a comprehensive directory of technology innovation trends. The platform provides the following analytics tools:
• Investment directories, a comprehensive list of all startup venture funding across the Middle East, Africa, Pakistan, and Turkey
• Market Sizing Tools to visualize investment growth and trends across industries, geographies, and stage
• Comparison Tools to benchmark geographies, industries and investor performance
• Exit comparisons, looking at Mergers & Acquisitions from across the region
Learn how MAGNiTT's proprietary data can help your business. Contact us now!
*This report aggregates and analyses FinTech startup investments across the overall Emerging Venture Market and gives a more detailed analysis of the performance of the industry in Africa