African Fintechs Dominate H1 2025 Start-Up Funding, Attracting $640M – Fintech Leads with 45% Share

In the first half of 2025, African fintech startups led the continent’s start-up funding landscape, securing approximately $640 million and accounting for 45% of total funding, according to data from Africa: The Big Deal. This marks a rebound in the fintech sector’s funding dominance, aligning with its 2024 performance and indicating a continued upward trajectory after a previous decline. Over the past 12 months, fintech’s share has risen to 51% of total African start-up funding, nearing its all-time high.

Major deals that contributed to this surge include Wave Money’s $137 million debt financing, Bokra’s $59 million sukuk issuance, Stitch’s $55 million Series B in South Africa, LemFi’s $53 million Series B in Nigeria, and a $50 million bond issuance by Egypt’s MNT-Halan subsidiary, Tasaheel. Nigeria, Egypt, and South Africa each raised over $100 million, while Kenya lagged significantly with only $23 million during the same period.

Despite the large funding figures, fintech accounted for just 27% of the total number of deals in H1 2025. However, it dominated in value, comprising 46% of all $10 million+ transactions. Fintech deals were larger on average ($10 million) compared to non-fintech deals ($4.8 million), highlighting investor preference for bigger-ticket fintech ventures.

Outside of fintech, the energy sector drew significant interest with $220 million raised, largely due to Kenya-based companies Burn Manufacturing and PowerGen. Energy made up 20% of funding, followed by healthcare at 11% (boosted by hearX’s $100 million merger deal), logistics and transportation at 8%, and proptech at 5%, where Egypt’s Nawy set a record with its $75 million Series A and debt round.

Overall, Nigeria ranked third in total funding received by African startups in the first five months of 2025, underscoring its strong fintech presence. The country, along with Egypt and South Africa, continues to dominate the fintech ecosystem, each consistently capturing more than half of their national startup funding within the fintech space.

Source: Punch