Kenya raised the second highest amount in Africa for tech startups, securing $564 million (5.64 billion) in 2019.
The 2019 Tech Venture Capita report by Partech Africa, demonstrates how economies in the continent are being significantly redefined by venture capital tech investment.
Among the startups listed to have received funding include Tala, Branch, Twiga Foods, Azuri and Copia.
The financial technology sector in the country received the bulk of the funding getting 37 per cent of the total funds closely followed by off-grid tech which got 25 per cent.
“Fintech is clearly exploding in the continent with more and more digital players enabling startups to serve the segment,” said General Partner of Partech, Tidjane Dème.
The report also highlights the success of Nigerian tech startups, having attracted a record high of $747 million(Sh 75 billion) in venture capital investment, which accounts for 37 per cent of all funding.
South Africa however slowed down compared to Kenya and Nigeria, as they received $205 million(Sh 20.6 billion) in total funding.
In total VC funding raised by African tech start-ups in 2019 totaled $2.02 billion(Sh 203 billion), compared to $ 1.163 billion(Sh 116 billion) in 2018, representing 74 per cent year on year growth.
Financial inclusion remained the main investment sector in the continent, attracting US$ 1.1 Billion(Sh 110 billion),54.5 per cent of the total funding.
However, the online and mobile consumer services sector witnessed an increase in total funding to 29.3 per cent of total funding from 19.6 percent in 2018.
This stems from the growth of the HealthTech sector in the continent receiving $189 million recording a 969 per cent year on year growth.
CarePay Kenya, a health-finance platform received $45 million, 23.8 per cent of the total health sector funding.
18 African countries attracted the VC tech funding.
The Africa tech sector’s attractiveness to investors is the highest it has ever been, there being 70 investors who made two or more transactions in 2019 compared with 20 investors only back in 2017.
