African e-commerce startups raise $11.3M in Q1 as investor caution grows
- Funding for African e-commerce startups fell to $11.3 million in Q1 2025 from $21.4 million in Q1 2024.
- Egypt's Taager raised $6.8 million in a Pre-Series B round led by Breyer Capital.
- Kenya's Kapu secured $2 million in a Pre-Series A from Base Capital.
The decline in investment for e-commerce startups in Africa highlights a critical need for these companies to adapt their strategies to attract funding. As investors become more risk-averse, startups must focus on demonstrating strong unit economics and profitability rather than just growth potential. This shift could lead to a more sustainable business environment in the long run, but it also poses significant challenges for emerging entrepreneurs.
