Report reveals a 58% drop of African fintech startup funding in Q3

African fintech startup funding dropped by 58% in Q3 2022.

According to the CB Insights State of Fintech Q3 2022 report, investments in the sector have dropped significantly in Q3 2022.

The African fintech startup has always received a larger share of funding.

The report states that the sector raised $161 million in Q3 2022, significantly less than the previous two quarters, with $383 million in Q2 and $369 million in Q1.

“The number of deals has also dropped from 74 in Q1 2022 to 43 in Q3 2022; while Q2 2022 had 61 deals,” read a statement in the report.

In the second quarter of 2022, funding for startups across various regions in the world started witnessing a decline, but it appeared that African startups were not affected.

However, as the year progressed, the numbers showed that funding to African startups had decreased.

Despite the slowdown, early-stage fintech startups still raise the most money with 90% of deals announced, which consists 2% more than numbers in 2021.

There have not been any mega-deals of above $100 million.

At the global scene, fintech funding fell 38% quarter-over-quarter (QoQ) to hit $12.9B, matching Q4 levels in 2020.

Diana Mutheu

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