E-health focused tech start-ups in Africa continue to attract more local and international investment amid the ongoing COVID-19 pandemic.
These start-ups were the second most targeted for investment last year according to Disrupt Africa’s African Tech Start-up Funding Report for 2020.
An excerpt from the report reads: “The African e-health sector powered into second place for total investment secured (after Fintech), banking $102,994,000; and third place for the number of ventures that raised, with 41 start-ups backed. More African start-ups in the e-health space (10) raised rounds of $1 million or above than ever before.”
The report also noted an overall increase in investors’ appetite to pour money into African tech start-ups, despite market uncertainties posed by COVID-19.
“This year, we counted at least 370 active investors; marking 42.8 per cent growth on the previous year. New records were set in 2020, as 397 African tech start-ups raised an impressive $701,4 million in total funding,” the report continues.
This was underpinned by robust investment rounds inked by Egyptian e-health venture Vezeeta which raised US$40-million in 2020, Nigerian Fintech start-up, Flutterwave whose investment round earned it US$35-million and South African retail-tech start-up, Skynamo with a US$30-million capital raise for the year.
Other notable capital raises for 2020 included Kenyan agri-tech company Twiga Foods and conservation tech solution Komaza which raised US$29,4-million and US$28-million in capital respectively.
Egypt has been highlighted as an emerging hub for tech start-up investment flows, along with key hubs Kenya, Nigeria and South Africa.
The four countries accounted for 77.3% of the tech start-ups that attracted funding rounds across the continent in 2020, notes the report.
About US$625,6-million of the US$701.4-million total funding for African start-ups in 2020 went to Nigeria, Kenya, South Africa and Egypt.
According to research by Briter Bridges, international investors committed US$1.3-billlion of venture capital into African tech ventures.
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