4 African startups that shutdown in Q1 2025
- African tech startups secured $780 million in funding in the first half of 2024, a 57% decrease from 2023.
- 54gene, a Nigerian genomics company, and Sendy, a Kenyan logistics startup, shut down due to funding problems.
- Joovlin, a Nigerian fintech startup, shut down in January 2025 after failing to secure additional funding despite early traction.
The current state of startup funding in Africa raises concerns about the sustainability of the ecosystem. While the shutdowns may provide learning opportunities for future entrepreneurs, the underlying issues such as economic instability, regulatory challenges, and inadequate infrastructure must be addressed to foster a more resilient startup environment. A collaborative effort among stakeholders, including investors, governments, and entrepreneurs, is essential to create a supportive landscape for innovation.
