Africa’s tech startup ecosystem has surpassed the $1 billion funding mark in 2025, with total disclosed capital raised reaching approximately $1.103 billion by the end of May, according to data from Launch Base Africa.
The month of May alone accounted for $235.61 million across equity, debt, and hybrid financing deals, underscoring a resurgence in investor confidence across sectors and geographies.
The actual figure is likely higher due to numerous undisclosed rounds and several others reported as “six-figure” or “seven-figure” deals without specific amounts. While fintech remains dominant, newer verticals like cleantech and healthtech are rapidly climbing in relevance, reshaping Africa’s tech funding landscape.
Fintech Holds Its Lead, But Cleantech and Healthtech Gain Ground
Fintech continued to lead both in deal volume and funding totals. Egypt’s MNT-Halan secured the largest single deal of the month with a $49.4 million bond issuance, followed by Thndr ($15.7M), MoneyFellows ($13M), and Nigeria’s Carrot Credit ($4.2M), each reflecting sustained investor appetite in digital finance, super apps, and lending platforms.
However, May also marked a significant shift in attention toward cleantech and healthtech.
Cleantech startups tackling energy access and climate resilience attracted substantial backing. Kenya’s ARC Ride and BURN Manufacturing each raised $5 million, while Nigeria’s Husk Power secured another $5 million for solar hybrid mini-grids.
Digital health and pharmaceutical logistics also saw renewed momentum. Kenya’s MyDawa raised $9.6 million, Japan-backed SORA Technology brought in $4.8 million, and Egypt’s iSupply landed a $3 million round with support from Bokra.
Other active verticals included:
- E-commerce: Egypt’s used-car marketplace Sylndr raised $25.7 million
- Proptech: Cairo-based Nawy led the sector with a $75 million equity and debt round
- Agritech: Firms like FreshSource and Mariseth Farms gained traction
- Public Safety: South Africa’s AURA secured a $15 million round for emergency response tech
Egypt Leads in Capital and Deal Count
Egypt emerged as the clear leader in both deal volume and capital raised in May, accounting for at least 11 transactions. Alongside major rounds by Nawy and MNT-Halan, companies like Thndr, Sylndr, and MoneyFellows contributed to a fintech- and proptech-heavy surge in investment.
Nigeria followed with active deal flow in fintech, cleantech, and healthtech. Standout rounds included Carrot Credit ($4.2M), Cutstruct ($1.5M), and Salpha Energy ($1.2M).
Kenya, though lighter in volume, attracted deep-pocketed investments in cleantech and healthtech, while South Africa registered deals in insurtech and emergency services, led by AURA’s $15M raise.
Other countries, including Tunisia, Ghana, Uganda, Ethiopia, and Algeria, featured in the funding landscape, albeit with fewer disclosed amounts.
Investor Landscape: A Shift Towards Local Capital and Diversification
The data shows an evolving investor mix, with local VC firms and African institutional investors playing a more active role alongside global funds and development finance institutions (DFIs).
- 36.2% of investors were Africa-based, including Algebra Ventures, Lorax Capital Partners, E3 Capital, Resilience17 (Nigeria), and 27four Investment Managers (South Africa)
- 29% were European, with strong participation from Proparco, BII, and Goodwell Investments
- 17.4% were North American, including Y Combinator, CRE Venture Capital, and MaC Venture Capital
- 8.7% came from the Middle East, featuring Shorooq Partners and Nuwa Capital
- Asian interest was led by Japanese investors such as Nissay Capital, DRONE FUND, and Ohara Pharmaceutical, particularly in healthtech
DFIs remained pivotal in cleantech and infrastructure-related ventures, often de-risking early-stage startups through concessional or blended financing models.
Key Trends Shaping the Ecosystem
- Rising Use of Debt: Startups like MNT-Halan, Nawy, and BURN Manufacturing are increasingly turning to bonds and structured debt, reflecting financial maturity and investor comfort with recurring revenue models.
- Funding Instruments Diversify: May saw a mix of pre-seed equity, venture debt, bonds, and revenue-sharing agreements, indicating a more sophisticated approach to startup capital structuring.
- Early-Stage Momentum Persists: Despite large rounds grabbing headlines, pre-seed and seed activity remains active, with deals from Platos Health, THE WHITEGUARD, and Cutstruct showing continued interest in early innovation.
- Pan-African Scalability: Startups like SORA Technology, Mercurie, and Inclusivity Solutions are designing with regional scale in mind, often backed by funds with cross-border mandates.
- Sectoral Hubs Emerge:
- Egypt is strengthening its hold on fintech and proptech
- Kenya leads in cleantech innovation
- South Africa is advancing in emergency tech and insurtech
With the first half of 2025 still underway, Africa’s startup funding is already on track to outpace 2024, driven by a more diverse mix of sectors, funding instruments, and capital sources. Investor sentiment is shifting from high-risk experimentation toward measured, scalable innovation, supported by increasing local participation and sector specialization.
