African startups that shutdown in 2023

Africa's tech ecosystem has steadily evolved into a hotspot for investors, driven by the continent's promising potential for remarkable growth. Fueled by a burgeoning population and its status as an emerging tech hub, Africa's market offers an array of opportunities waiting to be explored.

Last year, 633 African tech startups attracted a record US$3,333,071,000 representing incredible growth. This impressive growth marked a 12.2% increase from the 564 startups that secured funding in 2021 and a 55.1% surge compared to the $2,148,517,500 raised in the previous year, according to Disrupt Africa.

The year 2023 presents a different narrative for the African startup scene. The ecosystem is in the midst of an unprecedented transformation with VC funding showing a consistent decline. This shift began as a ripple effect of a global tech downturn.

Only 186 ventures have secured investment this year, with a total of US$1.4 billion raised, representing a 48 per cent decline from the US$2.7 billion raised in the first nine months of 2022.

Of even greater concern is the gradual decline in quarterly figures. African tech startups secured $649,303,000 in Q1, marking a 57.2% decrease from Q1 2022. In Q2, they raised just above $540 million, and the $492,418,000 raised in Q3 signifies the weakest quarter of the year in terms of funding.

This downturn has triggered a chain reaction of consequences, including workforce layoffs, slashed valuations, startup sales, and, in some unfortunate cases, complete shutdowns.

Below are the African startups we lost in 2023.