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African Startups Raise $1.4B in H1 2025

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Startups across Africa raised over $1.4 billion in the first half of 2025, according to the latest Africa: The Big Deal report.

This marks a +78% increase compared to H1 2024, when just $800 million was raised, and represents a strong comeback from the funding slowdown seen in 2023 and early 2024.

With $365 million raised in June alone—the strongest monthly performance in almost a year—the continent’s startup ecosystem is not just rebounding but gaining renewed momentum.

Monthly fundraising crossed the $250M mark four times in H1, and the average monthly funding rose to $237M, significantly higher than 2024’s average of $187M and H1 2024’s $133M.

Record-Breaking Milestone and Early Momentum

The year started off on a strong note, with African startups surpassing the $1 billion mark by the end of Mayseven weeks ahead of the same milestone in 2024.

This makes 2025 the earliest $1B year since 2021, reinforcing the notion that Africa’s startup ecosystem is entering a new cycle of recovery and resilience.

More than 20 African countries recorded deals above $100K between January and June, indicating a broader distribution of capital across the continent, not just in the usual hotspots like Nigeria, Kenya, Egypt, and South Africa.

Deals over $100K were recorded in 20+ countries, showing wider capital distribution across the continent.

Key Insights:

  • Fintech continues to dominate, accounting for nearly half of all funding, driven by large raises like Bokra ($59M) and LemFi ($53M).
  • HealthTech spiked thanks to hearX’s $100M raise, the continent’s largest deal so far in 2025.
    Proptech is emerging as a serious player, led by Nawy’s $75M deal—the largest ever in the category for Africa.
  • Energy and ClimateTech startups are attracting more attention, particularly in solar, battery storage, and grid access.
  • Green Tech & AI-powered platforms are experiencing a steady rise, although still underreported in public data.

Six of the top 7 deals in May were from Egypt, highlighting its dominance this year.

Debt Sees Resurgence in June

On the equity side, startups raised $950 million in H1 2025—up 79% YoY, although slightly below H2 2024’s $1.02B (-7%).

However, debt funding stole the spotlight in June, contributing a whopping $227 million, including $137 million for Wave alone.

This pushed the total H1 debt funding to $400 million, a 55% increase from H1 2024 and nearly matching H2 2024’s performance.

This resurgence in debt brings non-dilutive capital back into focus for African startups, suggesting growing lender confidence and increasing maturity in venture debt markets.

Key Observations:

  • Equity remains dominant, particularly in early- and growth-stage rounds, underlining investor appetite for long-term plays in sectors like fintech, healthtech, and energy.
  • Venture debt is on the rise, representing over 1 in 8 dollars raised — a sign that founders are increasingly open to non-dilutive capital, and that lenders are gaining confidence in Africa’s startup creditworthiness.
  • Bond activity is rare but noteworthy — MNT-Halan’s $50M corporate bond issuance in Egypt is the largest of its kind on the continent and hints at capital market maturity in select markets.
  • Grant capital, though minimal, continues to play a catalytic role in sectors like climate innovation and social impact ventures.

P.S: While March 2025 saw a temporary dip in deal flow ($50M total), the sharp rebound in April ($343M) and continued strength in May ($254M) suggest that the lull was an anomaly, not a trend.

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