Last year was a tough period for African growth-stage startups and 2024 presents a mixed bag
- South Africa's WhereIsMyTransport and Kenyan logistics company Sendy shut down after failing to raise fresh funding.
- Chipper Cash and Cellulant conducted layoffs due to the cash crunch.
- B2B e-commerce businesses like Copia Global, Twiga, MarketForce, and Alerzo downsized or exited markets.
The African tech startup ecosystem faced significant challenges in 2023, with a dip in VC funding leading to closures, layoffs, and downsizing. The reliance on foreign VCs and the funding gap were major issues. However, the tough times also highlighted the need for sustainable business models and market-specific strategies. Companies are exploring alternative funding sources and strategic moves to navigate the funding winter. It is crucial for founders and investors to establish balanced and transparent relationships for the health and sustainability of the tech ecosystem.
