A Promising Start for African Startups in 2025
African startups have raised an impressive $408 million between January and February 2025, marking the highest amount secured in the first two months of a year since 2021, when funding reached $400 million. This surge signals a strong start to what could be a record-breaking year for African tech and innovation.
According to Africa: The Big Deal, which tracks investments of $100,000 and above, startups raised $119 million in February 2025, despite a slight decline in the number of deals compared to previous years. However, the funding landscape still shows positive growth trends.
Investment Trends: Mega Deals Keep Momentum High
While the number of $100,000+ deals announced in early 2025 is lower than in previous years, the number of $1 million+ deals (42) is in line with 2023 (42) and 2024 (43). These numbers are also significantly higher than the pre-heatwave period of 2019-2021, when such deals ranged between 20 and 31.
Top Sectors: Fintech and Logistics Lead the Charge
Following 2024’s funding patterns, the largest seven deals in 2025 (which make up 80% of total funding) have all been in the fintech or logistics and transport sectors. The majority of these deals were concentrated in Africa’s Big Four startup hubs: Nigeria, Kenya, Egypt, and South Africa.
SEE ALSO: African Startups See Venture Funding Slump in November 2024 Amid Debt Dominance
Notable Deals in Early 2025:
- Gozem (Togo-born startup) – $30 million ($15M equity, $15M debt)
- Khazna (Egypt, Fintech) – $16 million for expansion into Saudi Arabia
- Hakki Africa (Kenya, Fintech x Mobility) – ~$13 million
- Raenest (Nigeria, Fintech) – $11 million Series A
- Tether (Nigeria, Fintech) – $3 million seed + $7 million debt
- Affinity (Ghana, Fintech) – $8 million
- Taager (Egypt, Logistics & Transport) – ~$7 million Pre-Series B
These investments underscore the continued dominance of financial technology and logistics innovation in Africa’s startup scene.
Looking Ahead: Can 2025 Surpass 2024’s $2.2 Billion Funding?
As funding figures climb, projections suggest that African startups could surpass the $2.2 billion in equity, grants, and exits raised in 2024. If the momentum continues, 2025 could set a new benchmark for startup investments across the continent, reinforcing Africa’s position as a rising powerhouse in global entrepreneurship and innovation.
With strong investor confidence and an evolving startup ecosystem, African startups are poised for another transformative year in tech, finance, and mobility solutions.
