2024 African Startups Review: Unpacking Key Trends and Events – Part 4
As the year draws to a close, we wrap up our final edition of the End-of-Year Round-Up. This time, we spotlight African startups that made waves in financial inclusion, climate tech, and fintech unicorn milestones, shaping the future of innovation on the continent.
If you missed the first three instalments, catch up on the biggest moments of 2024 here, here, and here. Follow to catch up on some of the biggest events in the African landscape in 2024.
M-KOPA Bridging the Financial Gap Drove it to a USD 400 M ARR Milestone
2024 was a banner year for M-KOPA as the pay-as-you-go platform became a lifeline for millions of underbanked Africans.
In a region where many struggle to access credit, M-KOPA’s credit model didn’t just work—it thrived, delivering both financial empowerment and impressive business growth.
At the core of M-KOPA’s success is a model that enables customers to pay for essentials like smartphones and electric bikes through small daily instalments. This approach gives people with limited financial profiles a chance to build credit histories while accessing life-changing products.
For the 85% of sub-Saharan Africans earning less than USD 10 a day, it was an opportunity that traditional systems often fail to provide.
This model was however high-risk, especially in a region where, according to a 2021 survey, 65.9% of credit holders in sub-Saharan Africa defaulted on mobile loans. Yet, M-KOPA managed to defy the odds, maintaining stable default rates of around 10%—far below regional averages.
Its daily micro-repayment model that brought essential credit solutions to millions of underserved sub-Saharan Africans saw it racing toward an impressive USD 400 M annual revenue run rate. This was a 62% growth from USD 248 M last year, showing that financial inclusion can be both impactful and sustainable.
The growth was supported by a 30,000-strong sales team, that saw its reach extend to over 5 million customers across Kenya, Uganda, Nigeria, and Ghana.
2024 also saw M-KOPA expanding rapidly into South Africa, its fastest-growing market while scaling operations at its Nairobi-based smartphone assembly plant. Producing over 1.5 million devices, this facility underscores the company’s commitment to affordability and local job creation.
Operating profitably in four countries and thriving in a market often viewed as high-risk, M-KOPA’s story proved that bold, thoughtful models can unlock enormous potential, creating pathways for millions to achieve financial stability and a better quality of life.
Africa’s Climate Tech Sector: The Breakout Star of 2024
If there was one sector that commanded attention in 2024, it was climate tech. With an astounding USD 413.9 M raised by September, the sector doubled its 2023 total, becoming Africa’s fastest-growing startup space and claiming one-third of all investments on the continent.
From solar energy and electric mobility to sustainable agriculture, African innovators delivered bold solutions to address the continent’s unique climate challenges. Big ticket deals like D.Light’s USD 176 M, Spiro’s USD 50 M, and BasiGo’s USD 42 M set the tone for what many are calling a climate revolution in Africa.
But as optimism surged, so did caution. Some investors, like LoftyInc’s Idris Bello, warned against overhyping the sector, pointing to significant hurdles like weak infrastructure and the high costs of implementing electric vehicle (EV) solutions. “A lot of this money will go down the drain,” Bello remarked, highlighting the reality that not every climate tech solution is ready to thrive in African markets.
Still, there are clear signs of progress. Startups like MAX, which introduced electric motorcycles to African cities, and Kenya’s Octavia Carbon, a pioneer in carbon capture technology, are carving out sustainable paths forward. These ventures are proving to be more than just proofs of concept but also tangible steps toward a greener, more resilient future.
Driving the sector’s growth is a sobering reality: Africa faces some of the world’s most severe climate risks, from droughts and floods to food insecurity. In response, innovators are leveraging renewable energy, precision farming, and mobility solutions to create lifelines for vulnerable communities.
Despite scepticism about scalability and practicality, the rise of climate tech in 2024 signals a broader shift in how the continent approaches its future. It’s no longer just about mitigating risks—it’s about creating opportunities for long-term growth, sustainability, and impact.
And, as Africa steps into a leadership role in the global climate conversation, 2024 will be remembered as the year the continent’s climate tech ambitions took flight.
TymeBank Joins the Unicorn Club to Close 2024 in Style
The year began with a bang when Nigerian fintech Moniepoint became the year’s first unicorn in February after raising USD 110 M at a USD 1 B valuation. As one of West Africa’s most active business banking platforms, this milestone set the stage for its planned expansion into Kenya, where it aims to challenge M-Pesa.
But, just when it felt like the year was wrapping up with investments, 2024 saved one of its biggest surprises for last.
In December, South Africa’s TymeBank, a South African digital lender, closed a USD 250 M Series D round in December, catapulting its valuation to USD 1.5 B. This made Tyme Africa’s ninth unicorn, and the second this year after Moniepoint.
With 15 million customers already on board and over USD 600 M in financing extended to small businesses, TymeBank’s hybrid online-offline banking model didn’t just attract customers; it also captured the attention of global investors.
Latin America’s Nubank led the funding round, contributing USD 150 M as part of its strategy to expand into new markets.
Armed with fresh capital, TymeBank is getting adventurous and is gearing up for an ambitious expansion beyond the continent into Southeast Asia, targeting markets like Vietnam and Indonesia. The USD 250 M funding will not only drive this expansion but also lay the groundwork for a public offering by 2028.
Together, TymeBank and Moniepoint joining the unicorn club underscores the continued dominance of fintech in Africa’s startup ecosystem. Of the continent’s nine unicorns, seven hail from the sector, reflecting its ability to attract significant capital and scale rapidly.
As TymeBank deepens its roots in South Africa while eyeing new opportunities abroad, it stands as a testament to how African innovation is shaping local economies and inspiring global ambitions.
This final edition of the End-of-Year Round-Up reminds us of the resilience, ambition, and transformative power of Africa’s startup ecosystem. Here’s to the stories of 2025 that are waiting to be told!
