African startups collectively secured $1.35 billion in funding during the first half of 2025, a 78% increase from the $800 million raised in the same period in 2024, according to data from Africa: The Big Deal. This surge indicates a rebound in investor confidence across the continent’s startup ecosystem.
Sector Highlights
- Fintech Dominance: Fintech companies led the funding rounds, attracting $640 million, which constitutes approximately 47% of the total capital raised. Notable deals include Senegal-based Wave’s $137 million debt financing in June, marking the highest monthly debt funding in over two years.
- Debt Financing Surge: Debt funding saw a significant increase, totaling $448 million in H1 2025, up from $400 million in H2 2024. This growth reflects a shift towards more sustainable business models and investor confidence in revenue-generating startups.
Regional Performance
- South Africa: South African startups raised $344 million, leading the continent in the number of deals above $1 million. The largest deal was a $100 million merger by hearX.
- Egypt: Egyptian startups secured $339 million, with Nawy’s $75 million raise being the largest disclosed deal.
- Kenya: Kenyan startups raised $227 million, with significant investments in energy sectors, including Burn Manufacturing’s $85 million and PowerGen’s $55 million.
- Nigeria: Nigerian startups raised $176 million, their lowest half-year total since H2 2020. Despite the decline, the country maintained a high number of deals, indicating active early-stage investment.
The strong performance in H1 2025 suggests a positive trajectory for African startups, driven by strategic scaling and investor confidence. With fintech continuing to dominate and debt financing on the rise, the second half of 2025 is poised for further growth.
For more detailed insights and data, refer to the full report by Africa: The Big Deal.
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