The amount of venture capital going into Africa has increased significantly. While Africa’s booming fintech industry receives the majority of investments, agrifoodtech businesses are also witnessing an increase in investor interest.
According to AgFunder’s first Africa Agrifoodtech Investment Report, which was created in collaboration with the Dutch development bank FMO and British International Investment, the agrifoodtech sector received $482.3 million in investments in 2021, a 250% increase from 2020. (BII).
Since 2017, the agrifoodtech startup scene in Africa has raised more than $1 billion. With agrifoodtech firms generating around $400 million in the first half of 2022, this year is on track to surpass 2021. Despite the sector’s successes, investment in agrifoodtech accounts for only 10% of all venture capital invested in Africa and less than 1% of agrifoodtech globally. In 2021, 150 agreements involving close to 120 African agrifoodtech businesses got money.
Kenya, Nigeria, Egypt, and South Africa, collectively known as Africa’s “Big Four” markets, secured 92.2% of the capital. Nigeria and Kenya each received $147.8 million, while Egypt received $186.1 million and Kenya $88.5 million. The smallest percentage of the four was claimed by South Africa. Startups from Nigeria, Egypt, and Kenya reported similar numbers of deals: 38 in Nigeria, 36 in Egypt, and 32 in Kenya.
In 2021, the number of deals increased year over year by 50%, up from 99 in 2020 and 51 in 2017. The fact that 121 of the 150 transactions were seed rounds is noteworthy and highlights how young the African agrifoodtech market is. With an $11m round, Egypt’s Rabbit e-grocery and delivery platform took the top spot for seed fundraising.
Only 16 agreements were made in Series A investments, while the South African agrifood fintech startup Nomanini, which has raised a lot of tiny venture rounds, stated there was only one modest “late-stage” round.
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