Over the last few years, startups have faced challenges when trying to exit, due to factors like a frozen IPO market and reduced attractiveness to buyers, according to a report by Tech Crunch. It said large mergers-and-acquisitions (M&A) deals have also faced strict regulatory scrutiny, particularly involving Big Tech or multi-billion-dollar conglomerates.
Highlighting how a decrease in venture investment within any startup ecosystem can be linked to a lack of exit volume and value, the report said that the number of M&A exits in Africa peaked at 44 in 2021 when the continent attracted almost $6 billion in venture capital. In 2022, however, the number of exits declined to 29 as venture capital investment also decreased to over $3 billion.
As Africa’s tech ecosystem continues to experience fluctuations, there are some success stories, as some startups have enjoyed successful exits. These exits, often disclosed, offer a clearer understanding of the continent’s progress and potential to deliver value through M&A activity, according to the report.
Below are Africa’s biggest startup exits and how much they raised, as per Tech Crunch.
InstaDeep
InstaDeep, a Tunis-born and UK-based artificial intelligence (AI) startup was founded by Karim Beguir and Zohra Slim in 2014. The startup uses advanced machine learning techniques to bring AI to applications within an enterprise environment. It raised over $108 million from investors, including BioNTech, Alpha Intelligence Capital, Endeavor Catalyst and Google.
Acquirer: BioNTech (2023)
Exit: €500 million ($550 million) in cash and stock.
Sendwave
Sendwave offers money transfer services from countries in North America and Europe to those in emerging markets like Africa, Asia and the Americas. The startup, founded by Drew Durbin and Lincoln Quirk in 2014, raised over $15 million from Founders Fund, Khosla Ventures, Serena Ventures, and Partech.
Acquirer: Zepz (2020)
Exit: $500 million in cash and stock.
MainOne
MainOne was founded by Funke Opeke in 2010 and went on to raise over $200 million in equity and debt before its acquisition. The data center and connectivity solutions provider serve clients from technology enterprises to cloud service providers in Nigeria, Ghana and Ivory Coast.
Acquirer: Equinix (2021)
Exit: $320 million all-cash transaction.
DPO Group
DPO Group is a Nairobi and Cape Town-based fintech founded in 2006. It provides payment services to thousands of merchants across many African countries. It raised over $15 million from Apis Partners and other investors.
Acquirer: Network International (2020)
Exit: $291 million in cash and stock ($228.6 million cash).
Paystack
The Lagos-based was started by Shola Akinlade and Ezra Olubi. The platform offers payment processing services to businesses, enabling African merchants to accept online payments via debit card and direct bank transfer. As per Tech Crunch, the YC-backed startup is the first from the continent to graduate from the accelerator. It raised over $12 million from Stripe, Visa, Tencent and Ingressive Capital.
Acquirer: Stripe (2020)
Exit: $200 million+ cash-and-stock.
Expensya
The Tunis-based software company digitizes and simplifies business expense management. It raised $25 million from Bpifrance, ISAI and Silicon Badia. It was founded by by Karim Jouini and Jihed Othmani.
Acquirer: Medius (2023)
Exit: ~$120 million+ cash and stock, per sources
Fundamo
The fintech was founded by Hannes van Rensburg in 2000. Based in Cape Town, Fundamo was founded to enable the delivery of mobile financial services to unbanked and under-banked consumers around the world, including person-to-person payment, airtime top-up, bill payment and branchless banking services.
It raised $5 million from South African investors, including Knife Capital.
Acquirer: Visa (2011)
Exit: $110 million cash deal.
PaySpace
In 2017, Bruce, Clyde, Warren Clark and George Karageorgiades founded PaySpace. It is a cloud-based HR & Payroll solution to enable employers to efficiently manage their workforce. It raised an undisclosed venture for the first time last year from local payment solutions provider Netcash.
Acquirer: Deel (2024)
Exit: ~$100 million+ cash and stock.
