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Ugandan startups raised $19m in 2024, bouncing back from the lowly $4.8m that they raised in 2023 as per Africa: The Big Deal database.
Africa: The Big Deal database is a database that captures African startups’ funding since 2019. For a startup to be classified as African, it must be operating in Africa with an HQ on the continent, or one with an HQ outside Africa but with African founders building for Africa.
The database also captures publicly disclosed deals or those shared by investors/founders. It captures deals from $100k since 2021.
The $19m raised in 2024 is way off the record amount of $70m raised in 2022. Only in 2020 ($12m) and 2023 ($4.8m) have Ugandan startups attracted less funding in the last five years. The $19m raised was good enough for 11th in Africa.
Overall, African startups raised $2.2bn which is a 25% Y-O-Y decline from the $2.9bn raised in 2023. However, the downturn in funding is a result of a slow H1 of the year in which only $800m was raised. However, this is the third year in a row in which funding for African startups has continued to decline.
Neighbours, Kenya, topped the list as the most popular destination for venture capital in Africa raising $638m, over 30x the amount Uganda managed. Kenya edged other members of the big four; Nigeria ($410m), Egypt ($400m) and South Africa ($394m). Morocco took the title of the best of the rest raising $70m, just ahead of Ghana with $68m.
East Africa as a region attracted the most funding with $725m raised. This was 33% of the entire total raised in Africa even though Kenya contributed 88% of the entire amount raised by the region. West Africa came second with $587m, North Africa in third with $487m while Southern Africa managed $397m. Central Africa raised a meagre $5m.
Some of the Ugandan Startups that Raised Funding in 2024.
1. Watu Credit Uganda
Watu Credit raised $15m in January 2024 in a debt round. Single-handedly, Watu Credit was responsible for 79% of all funding raised by Ugandan startups in 2024.
Founded in 2010, Watu Credit focuses on providing asset financing for two-wheelers and three-wheelers, targeting the unbanked and underserved populations. Over the years, it has expanded its reach, offering innovative financial solutions that empower individuals and small businesses while significantly contributing to local economies.
The five-year term facility of $15 million was raised from Gateway Partners through Alpen Capital’s Africa Credit Opportunities Fund. This funding marks the first tranche of an ongoing mandate to raise a total of $50 million.
The capital will be utilised for onward lending to customers, enabling Watu Credit to grow its mobility portfolio and broaden access to essential financial services in Uganda.
Watu Credit has achieved remarkable success since its inception, having provided over one million loans across seven countries and positively impacting more than four million lives.
Its commitment to client protection has been validated by attaining Client Protection Certification, underscoring its dedication to fair treatment and responsible lending practices.
2. Gogo Electric
Ugandan e-bike startup Gogo Electric raised $1.6 million from the Electrification Financing Initiative (ElectriFI), marking a significant investment in Uganda’s mobility sector. This funding, backed by the European Union, supports Gogo Electric’s mission to revolutionise the transport landscape through sustainable e-mobility solutions.
Since its inception in 2017, Gogo Electric has achieved notable milestones, including the assembly of electric motorcycles and the manufacturing of lithium-ion batteries at its local factory, with an impressive production capacity of 60,000 units annually.
The company has deployed over 1,300 electric motorcycles and established 65 battery-swapping stations across Uganda, providing a seamless transition from gas-powered motorcycles to electric alternatives.
These initiatives are designed to decarbonize the “boda boda” motorcycle taxi sector, which plays a crucial role in Ugandan transportation.
The newly acquired funds will be utilised to expand Gogo Electric’s battery-swapping network and enhance its production capabilities. The company estimates its eco-friendly motorcycles can offset approximately 3,200 tonnes of carbon dioxide equivalent (CO2) emissions annually.
With this investment, Gogo Electric is poised to accelerate its growth and make electric motorcycles a mainstream option for Ugandans, ultimately contributing to a greener and more sustainable future for the region.
3. Rexial
In September 2024, Rexial raised $420,000 in a seed funding round. Rexial specialises in automating direct debit payments, enabling merchants to securely collect recurring payments through the Automated Clearing House (ACH) network.
This application allows businesses to set up electronic and secure ACH payments, facilitating automatic transactions from customers at significantly lower fees compared to traditional credit or debit card processing.
Rexial’s solution supports both business-to-business and business-to-consumer transactions, streamlining payment collection while reducing the risk of late payments and service interruptions. Rexial’s co-founder is Aeko Ongodia, who is also the founder of the wealth tech platform, Xeno.
Several other innovative startups secured undisclosed funding rounds in 2024, showcasing their potential in various sectors.
eMaisha Pay is a neobank tailored for Africa’s 250 million farmers, focusing on enhancing financial inclusion for micro and small agribusinesses through a mobile wallet and prepaid card system. It raised funding from the Baobab Network.
Power Up, a cooking startup, attracted investment in a deal led by Nairobi-based venture studio Delta40. Additionally, Level Africa, a wealth tech startup, has garnered backing from Renew Capital, furthering its mission to empower users to manage their financial assets effectively.