African startups raised $1.2 billion in H1 2025 as funding rebounds

African startups raised $1.2 billion in the first half of the year. This is an 86% increase over the same period last year (H1 2024). 

The first half of 2025 demonstrated that the African tech ecosystem has not only recovered from last year’s slowdown but is now attracting larger and more varied investments. As fintech and cleantech continue to lead, new sectors such as PropTech and strategic debt instruments are gaining traction. The flurry of acquisitions and mergers further highlights a maturing market. With deal volumes and ticket sizes on the rise, the challenge for the remainder of 2025 will be to sustain this momentum and ensure that capital inflows translate into lasting growth and innovation.

At the start of the year, there was a sense of anticipation around Africa’s tech scene, following the 31% drop in funding in 2024. By the end of June, that cautious hope had translated into tangible gains: African startups have raised $1.213 billion across 88 publicly disclosed deals, an 86% increase from the $652 million of H1 2024, according to Condia’s Funding Tracker.

The year’s first quarter laid a strong foundation with $469.9 million, 27 % more than the $369 million pulled in during Q1 2024, before Q2 truly hit its stride, delivering $743.1 million through a mix of follow‑on equity rounds, major financings, and strategic debt facilities. What began as cautious optimism has grown into a clear demonstration of confidence in the continent’s most promising ventures.

Periodic breakdown

Split into quarters, there were more fundraising announcements in the second quarter ($743.1 million) than in the first quarter ($469.9 million).

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The year began strongly, with January accounting for $245.2 million. In February, $185.8 million while only $39 million was announced in March. April lit up with $293.4 million, as May and June maintained the upswing with $210.2 million and $229.2 million, respectively.

Country breakdown

Partech’s Senegal continues to shine bright, even as the Big 4’s dominance continues

South Africa led all markets with $345.1 million, accounting for 28.5% of total funding, while Egypt followed closely with $283.5 million (23.4%). Senegal burst into the top four with $147.0 million (12.1%), thanks largely to Wave’s $137 million debt facility. Nigeria and Kenya accounted for $121.9 million (10.1%) and $83.0 million (6.8%), respectively. 

By comparison, Kenya had topped H1 2024 with $194.3 million, followed by Nigeria ($183.1 million), Egypt ($81.5 million), and South Africa ($65.9 million).

From the start of the year, South Africa set the pace and never looked back. With $120.4 million raised in Q1, it was already leading the continent. But the second quarter took things several notches higher, bringing its total haul to $345.1 million by the end of June. That’s over $220 million raised in just three months, and a strong signal that South African startups are attracting larger and more frequent cheques. 

Egypt’s story is even more impressive. It came into 2025 relatively quietly, pulling in $53.7 million in Q1. Then came Q2. By the end of June, Egypt had raised a total of $283.5 million, a nearly fivefold increase from where it started.

Nigeria had a solid start with $78 million in Q1, but the momentum didn’t quite carry through. The country ended H1 with $121.9 million, meaning less than $45 million across disclosed deals came in during the second quarter. For a market that’s long been seen as Africa’s flagship for startup activity, this stall is worth paying attention to. Some of it is likely tied to macroeconomic uncertainty, the naira’s volatility and the knock-on effect on investor confidence.

Kenya’s slowdown is even more pronounced. It raised $67 million in Q1, already far off its H1 2024 pace, and closed the half with $83 million in total. That’s a Q2 increase of just $16 million across disclosed deals. For context, Kenya led in H1 2024 with $194.3 million. So while the talent and ideas are still there, the funding hasn’t followed at the same pace. It’s possible investors are being more cautious with valuations, or that a lot of Kenyan startups are still mid-cycle and not quite ready to raise. Either way, the dip is notable and puts pressure on the ecosystem to rebound in the second half of the year.

Then there’s Senegal, a new entrant in the top five, and a surprise one at that. It didn’t show up in Q1’s top funding destinations, but by June had pulled in $147 million. The bulk of that came from just one deal: Wave’s $137 million debt round. Still, a single deal of that magnitude speaks volumes. It shows that African francophone markets, often overlooked, are starting to produce startups with enough scale and traction to attract significant global capital. It also helps that Partech Africa, one of the continent’s most active funds, is domiciled in Senegal. They’ve had a front-row seat in shaping the ecosystem and backing potential winners early. Partech backed Wave early on, when it was still part of Sendwave, the remittance startup that was acquired by WorldRemit, and has continued to support its growth into one of Francophone Africa’s most prominent fintech players.

Altogether, these country trends reflect a funding environment that’s shifting, not just in size, but in distribution. South Africa and Egypt are consolidating their place as reliable destinations for larger rounds. Nigeria and Kenya are seeing a more cautious investor posture, at least for now. And Senegal’s rise shows how much room there still is for fresh stories on the continent. If this mix holds, and if Q3 and Q4 bring more big raises in unexpected places, H2 might look even more interesting than the rebound we’ve just seen.

Startups outside the “Big Four” countries that raised at least $10 million in H1 2025

While the “Big Four”—Nigeria, Kenya, Egypt, and South Africa—continued to dominate overall funding, several startups outside those markets closed significant rounds. Here’s a look at the most notable:

• Senegalese fintech Wave raised $137 million in debt financing led by Rand Merchant Bank (RMB).
• Togo-based super app Gozem raised $30 million in Series B funding, split evenly between $15 million in equity and $15 million in debt.
• Ivorian fintech startup Djamo raised $17 million in equity funding to scale its mobile banking services across Francophone Africa.
• Ghanaian fintech Zeepay secured $18 million in senior secured venture debt to accelerate its expansion across Africa and the Caribbean.
• Senegalese healthtech startup KERA secured $10 million in funding from the International Finance Corporation (IFC), part of the World Bank Group.
• Rwanda-based agricultural insurtech Pula Foundation received a $10.4 million grant from the Bayer Foundation to help extend insurance coverage to 10 million smallholder farmers by 2030.

Sectoral breakdown

Fintech regained the lead after Cleantech dominated in Q1and mobility in H1 2024

Fintech remained dominant, raising $500.2 million (41.3% of the total). Cleantech raised $218.5 million (18.0%), while healthtech secured $113.0 million (9.3%). PropTech entered the top four thanks to Nawy’s $75 million deal (6.2%), and e-commerce drew $32.8 million (2.7%).

By contrast, in H1 2024, mobility led with $254.5 million, followed by fintech ($109.1 million), cleantech ($77.7 million), and healthtech ($42.2 million). In Q1 2025, cleantech was the strongest performer with $164.5 million, ahead of fintech’s $117.7 million.

Equity-only investments rose to $727.0 million in H1 2025, surpassing the $444.7 million recorded in the first half of 2024. Debt financing also rebounded strongly, with $229 million raised in June alone, more than half of the estimated $400 million total for H1 2025, and driven primarily by Wave’s debt raised. 

A half of acquisitions and exits

Strategic exits and mergers gained momentum across the continent. 

In North Africa, ADVA was acquired by Maseera (UAE), while Egypt’s Miran and Welnes announced a merger. West Africa saw BioLite take a majority stake in Baobab+, and Nigeria’s Bankly was acquired by C-One Ventures. South Africa’s Peach Payments acquired Senegal’s PayDunya, to expand into Francophone West Africa.

In other deals, Catalyst Partners Middle East completed a SPAC merger with Qardy for an estimated $23 million. Most recently, Chowdeck acquired Mira, signalling growing consolidation in the tech ecosystem.

For the ecosystem, healthy exits and mergers like this are important: they improve investor confidence, validate business models, and provide a clear blueprint for newer startups to follow.