By 
African startups have crossed the $1 billion funding milestone for 2025, achieving the mark earlier than they did in 2024, according to new insights from Africa: The Big Deal. This signals a strong resurgence in investor confidence, as tech ventures across the continent collectively raised $2.5 billion between June 2024 and May 2025—the highest 12-month fundraising total since early 2024.
RELATED: African Startups are missing big time from legacy businesses and systems…
Despite a slight dip in May, following a strong April, momentum remained robust. In May alone, startups secured $254 million in disclosed deals above $100,000, pushing the total funding for the first five months of 2025 to just over $1 billion. This marks a 40% year-on-year increase compared to the $750 million raised during the same period in 2024.
Egypt Dominates with Record-Breaking Deals
Egypt emerged as the continent’s funding leader, accounting for 31% of total 2025 startup funding—more than $330 million—followed by South Africa (26%), Nigeria (15%), and Kenya (12%).
Among the 36 disclosed deals over $100k in May, seven startups raised over $10 million, showcasing a shift toward larger, growth-stage investments. Leading the charge was Egyptian proptech startup Nawy, which raised a record-setting $75 million ($52 million in Series A equity from Partech and $23 million in debt), making it the largest proptech deal in African history.
Other major Egyptian deals include:
- Tasaheel, a fintech arm of MNT-Halan, raised $50 million via a corporate bond issuance.
- Valu, backed by Saudi investors, secured $27 million and is prepping for an IPO.
- Thndr, a digital investment platform, closed over $15 million.
- Sylndr, a mobility-focused startup, raised $15 million in Series A.
- Money Fellows, a collaborative finance platform, landed $13 million in pre-Series C funding for regional expansion.
The only non-Egyptian among the top deals was South Africa’s AURA, a healthtech company, which raised a $15 million Series B co-led by Partech and CAIF, with plans to enter the U.S. market.
Exit Activity Gains Momentum
Exit activity also saw an uptick in May, with four notable acquisitions and mergers, three of which involved Egyptian startups:
- Fatura was acquired in the MaxAB-Wasoko merger.
- Miran and Welnes, two wellness platforms, completed a strategic merger.
- Qardy was acquired by Catalyst Partners Middle East in Egypt’s first-ever SPAC deal, valued at approximately $23 million.
Outside North Africa, BioLite’s acquisition of Baobab+ in West Africa indicates growing momentum in strategic consolidation across African markets.
Key Highlights
- 2025 Funding Milestone: African startups have already surpassed $1 billion in funding for the first five months of 2025, exceeding the $750 million raised during the same period in 2024, according to Africa: The Big Deal.
- May 2025 Funding: May 2025 saw $254 million in funding, with Egypt leading in deal volume.
- 12-Month High: The rolling 12-month total (June 2024 to May 2025) reached $2.5 billion, the highest since early 2024.
- Egypt’s Dominance: Egypt is a significant player in 2025, leading in deal volume and attracting a large portion of the continent’s funding
- Resilience in Q1 2025: Despite a global economic downturn, African startups in the first quarter of 2025 raised approximately $460 million, a modest 5% decrease from the same period in 2024.
- Sector Diversity: While fintech remains a dominant sector, there’s growing investor interest in green tech, health tech, and AI-powered platforms.
- Venture Debt’s Role: Venture debt is playing an increasingly important role, accounting for 37% of the total venture capital deal value in 2024
- Government Support: African governments are rolling out reforms to support the tech ecosystem, with initiatives like the Nigerian Startup Act aiming to streamline regulations and provide incentives.
A New Phase of Growth for Africa’s Startup Ecosystem
The continued influx of big-ticket investments, combined with rising exit activity, suggests that Africa’s startup ecosystem is entering a more mature and confident growth phase. With $2.5 billion raised in the past year, the continent is increasingly attracting attention from global venture capital firms and strategic investors.
If the current trend continues, 2025 could surpass recent records and cement Africa’s status as a global innovation frontier—especially in fintech, proptech, healthtech, and AI-enabled platforms.
