African startups began 2025 with an impressive fundraising performance, securing $289 million in January through deals of $100,000 and above. This is a 240% surge from the $85 million raised in January 2024, making it the second-best January for startup funding since at least 2019. It was surpassed only by January 2022 at the peak of the funding boom.
According to Africa: The Big Deal, equity financing dominated the funding landscape, accounting for over 90% of the total raised ($262 million). This represents a significant jump from the previous year and ranks as the second-highest January for equity fundraising in the past six years.
The four largest deals in January 2025 made up nearly 60% of the total funding, all originating from Africa’s “Big Four” startup ecosystems—Nigeria, Kenya, Egypt, and South Africa. Three of these deals reflect the growing trend of African startups expanding beyond the continent.
Among the top deals of the month:
- PowerGen (Energy): Raised over $50 million to build a scalable platform for distributed renewable energy solutions, showing investor interest in sustainable energy.
- LemFi (Fintech): Secured $53 million for expansion into Asia and Europe, reinforcing the global appeal of African fintech innovations.
- Naked (Insurtech): Raised $38 million in a Series B round to automate and expand its insurance offerings, signaling continued growth in the insurtech sector.
- Enko Education: Secured $24 million to expand its network of African schools, underlining the increasing focus on education solutions.
This strong start to 2025 signals renewed confidence in Africa’s startup ecosystem after funding challenges in 2023 and 2024. The diversification of sectors attracting investment—from energy and fintech to insurtech and education—reflects the continent’s evolving economic landscape.
In 2024, African startups collectively raised $2.2 billion, driven by mega deals from Nigeria’s Moniepoint and South Africa’s Tyme Group. This amount, which included equity, debt, and grants, represented a 25% drop from the $2.9 billion raised in 2023. Despite the decline, the early momentum in 2025 suggests a promising year ahead for African startups.
