Nine African startups have defied the odds of a challenging operating environment and a nascent market to achieve valuations of $1 billion or more. These startups are blazing a path and shaping the reality of what can be achieved with audacity, perseverance, and maybe a slice of luck—think the COVID-induced funding boom of 2021—on the continent.
Africa still has one of the lowest numbers of unicorns compared to the rest of the world. According to the Global Unicorn Index 2024 by the Hurun Research Institute, one new unicorn is minted every two days, with 171 new unicorns added globally in the past year. The report found that 1,453 startups have reached unicorn status since 2000.
The unicorn market in Africa remains nascent, but it offers hope for growth in the coming years. However, according to industry experts, founders should prioritise building businesses that solve real problems, not just those that become unicorns. Bernard Ghartey, principal at Norrsken22, noted that while celebrating unicorns is worthwhile, the continent also needs more startups generating actual revenues of $100 million and above.
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Since 2019, Africa has produced at least one unicorn annually. However, a funding drought in mid-2023 slowed this momentum. For almost two years (January 2023 to October 2024), Africa’s startup scene failed to produce new unicorns as it grappled with closures, funding cuts, and layoffs. The tides, however, are beginning to turn. Here is a rundown of Africa’s unicorns—with some valuations yet to be updated—according to Africa: The Big Deal, a data insights firm tracking funding of $100,000 and above:
1. Interswitch: The Nigerian fintech achieved unicorn status after Visa invested $200 million in November 2019. It has since raised another round of funding ($110 million) in May 2022.
2. Flutterwave: Another Nigerian fintech joined the exclusive league in March 2021 after raising a $170 million Series C round at a valuation of over $1 billion. Its valuation climbed to over $3 billion following a $250 million Series D round in February 2022.
3. OPay: A Series C funding round of $400 million in August 2021 sealed the Nigerian fintech’s valuation at $2 billion.
4. Wave: In September 2021, the startup announced a $200 million Series A at a $1.7 billion valuation. It has not raised any additional rounds since, and its valuation has not been updated.
5. Andela: The edtech announced a $200 million Series E in late September 202 at a valuation of $1.5 billion. The company hasn’t announced further funding in the past three years with concerns that its valuation might have since taken a bit of a hit, Africa: The Big Deal noted.
6. Chipper Cash: The fintech raised a $150 million Series C in November 2021 at a valuation of slightly over $2 billion. “Chipper hasn’t raised since, and multiple rounds of layoffs starting in late 2022 have led some to question whether its valuation could, in fact, now be lower,” the data insight firm stated.
7. MNT-Halan: The Egyptian fintech raised $260 million in equity (plus $140 million in debt) in January 2023, achieving a valuation estimated at $1 billion. Another funding round of $157.5 million in July 2024 reinforced this valuation.
8. Moniepoint: The Nigerian fintech became a unicorn in October 2024 after raising $110 million.
9. Tyme: The startup achieved unicorn status in December 2024 following a $250 million Series D funding round.
According to Africa: The Big Deal, Jumia deserves an honourable mention. Its IPO in April 2019 pushed its market cap to $3 billion, although it has since dropped to $600 million.
The data insights firm reported that the latest shared valuations of these nine unicorns total over $16 billion, with more than $3 billion in equity raised since 2019. “For comparison’s sake, according to our data, start-ups in Africa have raised a total of over $13 billion in equity during the same period,” it added.