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# African fintech startup funding dropped by 58% in Q3 2022
- URL: https://www.techloy.com/african-fintech-startup-funding-dropped-by-58-percent-in-q3-2022/
- Published: 2022-11-18T19:24:58.000Z
- Updated: 2022-11-18T19:24:58.000Z
- Author: Acquah Nana Yeboah
- Tags: / Startups, / Money, Tech in Africa

African fintech startups have always taken the lion share when it comes to funding in the African tech ecosystem. However, data from *CB Insights* suggests that investments in the sector have dropped significantly in Q3 2022.

In the second quarter of 2022, funding for startups across various regions in the world started witnessing a decline, but it appeared that African startups were immune to this global slowdown. But as the year progressed, the numbers showed that funding to African startups had decreased.

According to the [CB Insights State of Fintech Q3 2022](https://www.cbinsights.com/research/report/fintech-trends-q3-2022/) report, African startups raised $161 million in Q3 2022, which was significantly less than the previous two quarters with $383 million in Q2 and $369 million in Q1.

The number of deals has also dropped from 74 in Q1 2022 to 43 in Q3 2022; while Q2 2022 had 61 deals.

![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/2022/11/Funding-for-African-fintech-startups-declined-by-58--in-Q3-2022--5---1-.png)

Chart: [Acquah Nana Yeboah](https://www.techloy.com/author/yeboah/) | [Techloy.com](https://techloy.com/)

Despite the slowdown, one thing is still consistent across all the quarters. Which is that early-stage fintech startups still raise the most money with 90% of deals announced so far, 2% more than 2021’s numbers. Furthermore, there haven’t been any mega-deals so far (defined as deals above $100 million).

The biggest deal in the continent so far is [TeamApt's $50 million raise](https://www.techloy.com/nigerian-fintech-startup-teamapt-raises-over-50-million-in-funding/), and this constitutes 30% of the recorded fintech funding. The report also highlighted quite unsurprisingly that the number of mergers and acquisitions has increased, with 18 M&As so far.

At the global scene, fintech funding fell 38% quarter-over-quarter (QoQ) to hit $12.9B — matching Q4 2020’s level.