African startups kicked off 2025 with a strong funding performance, raising $289 million in January, a 240% increase compared to $85 million raised in the same period in 2023. This marks the second-best January for startup funding since 2019, trailing only January 2022, which was during the peak of Africa’s funding boom, according to Africa: The Big Deal, a startup funding tracker.
The report highlighted that equity financing dominated the fundraising landscape, accounting for over 90% of the total amount raised, with startups securing $262 million in equity funding. This represents a significant jump from January 2024 and is the second-highest January equity funding total in the past six years.
Top Deals from Africa’s ‘Big Four’
Four of the largest funding rounds came from startups based in Nigeria, Kenya, Egypt, and South Africa, accounting for 60% of the total funding across the continent.
- PowerGen (Energy) raised $50M+ to expand its renewable energy solutions in Africa.
- LemFi (Fintech) secured $53M to accelerate expansion into Asia and Europe.
- Naked (Insurtech) closed a $38M Series B to automate operations and enhance its product offerings.
- Enko Education obtained $24M to expand its network of African schools.
Interestingly, three of these four startups are actively expanding beyond Africa, highlighting a growing trend of African companies scaling their operations to international markets.
Positive Outlook for African Startup Ecosystem
Experts believe that this funding surge signals a positive shift for Africa’s startup ecosystem, which faced significant investment slowdowns in 2023 and 2024. If the trend continues, 2025 could be a strong year for venture capital investments across the continent.
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