African Startups Raise $803M in Early 2025, Signaling Strong Tech Sector Rebound
In a strong indication of recovery, African startups have collectively raised $803 million in funding between January and April 2025—a 43% increase compared to the $563 million secured during the same period in 2024. This surge in capital, highlighted by the Africa: The Big Deal report, suggests renewed investor confidence across the continent’s tech sector. The uptick comes after a challenging year marked by global economic uncertainty that had slowed down funding streams in 2024.
The report noted that 163 startups closed deals worth $100,000 or more in the first four months of 2025, up from 147 during the same time frame last year. April played a major role in this revival, contributing $343 million from 39 deals, making it the second-highest April on record after the funding boom of 2022. Noteworthy among these was a $100 million deal between South African healthtech firm hearX and U.S.-based Eargo, marking the year’s first mega-deal and underlining Africa’s growing influence in global healthcare innovation.
Other significant deals include Egyptian Islamic fintech startup Bokra raising $59 million via sukuk issuance—an impressive leap from its $4.6 million pre-seed round last year—and South Africa’s Stitch securing $55 million in follow-on funding to enhance digital payment infrastructure. The ecosystem also witnessed key acquisitions in April, with Nigeria’s Bankly, Egypt’s ADVA, and Senegal’s PayDunya all being acquired, signaling a maturing market ready for consolidation and regional expansion.
Investor activity is also gaining momentum, with at least 225 unique investors participating in sizable deals so far in 2025. Additionally, over $1.3 billion has been secured by Africa-focused VC funds since early 2024, with firms like Janngo Capital and LoftyInc Capital leading the charge. While stakeholders remain cautiously optimistic, the early trends of 2025 point to a resilient and evolving tech ecosystem that may be on the verge of a more stable and diversified growth phase.
Source: Leadership