African Start-ups Raise $803M in Q1 2025 as Investor Confidence Rebounds
African start-ups raised a remarkable $803 million in Q1 2025 across 163 deals, marking a 43% increase from the same period last year, according to data from Africa: The Big Deal. The report only tracks funding rounds of $100,000 or more and does not include exit valuations. This uptick points to renewed optimism among investors, particularly following a quieter 2024, and signals a strong start to the year for the continent’s entrepreneurial scene.
April played a standout role in this rebound, contributing $343 million—more than quadruple what was raised in April 2024. It was also the month that saw 2025’s first mega-deal: South African healthtech company hearX merged with U.S.-based Eargo in a $100 million transaction. April’s funding volume was second only to April 2022, making it one of the strongest months in recent memory.
Beyond the mega-deal, several significant raises stood out. Egypt’s Islamic fintech Bokra secured $59 million via a sukuk issuance, a huge leap from its $4.6 million pre-seed round just a year ago. Meanwhile, South African payments company Stitch brought in $55 million from existing investors to boost its end-to-end infrastructure. These large rounds reflect a growing appetite for fintech innovation and infrastructure across the continent.
On the exit front, activity was modest but notable. At least four exit deals were completed in the first quarter, including fintech platform ADVA’s acquisition by UAE-based Maseera and Bankly’s buyout by Nigeria’s C-One Ventures. South Africa’s Peach Payments also acquired PayDunya, signaling a strategic push into Francophone West Africa. These exits indicate a maturing ecosystem where consolidation and cross-border expansions are picking up.
Backing this funding surge is a deepening pool of VC commitments. Since early 2024, Africa-focused venture capital firms have raised over $1.3 billion in fresh capital. Among these are Janngo Capital’s gender-focused fund and vehicles from Verod-Kepple, Saviu, Airnergie, and LoftyInc. Together, these commitments are helping propel the continent’s startup ecosystem into a new growth phase—one defined not just by recovery, but by renewed momentum.
Source: Business day