Africa’s Fintech Sector Dominates Startup Funding with $640 Million in H1 2025

Africa’s fintech industry reclaimed its position as the continent’s leading startup funding recipient in the first half of 2025, securing $640 million driven by five major deals, according to the Africa: The Big Deal report. The largest single transaction was Wave Money’s $137 million debt raise, followed by Egypt’s Bokra with a $59 million sukuk, and South Africa’s Stitch closing a $55 million Series B round. Nigeria’s LemFi and Egypt’s MNT-Halan’s Tasaheel also contributed significantly with funding rounds of $53 million and $50 million respectively.

These transactions highlight the growing influx of capital into fintech, which accounted for 51 percent of total startup funding over the past year—a sharp rise from 28 percent 18 months earlier. While fintech comprised 27 percent of all deals in H1 2025, it dominated larger funding rounds, representing 31 percent of deals over $1 million and 46 percent of deals above $10 million. The sector’s median deal size was $1.7 million, far surpassing the median $0.5 million seen in non-fintech sectors.

Outside fintech, energy remained the second largest sector attracting $220 million, with notable investments in Kenyan companies Burn Manufacturing and PowerGen. Healthcare followed with $160 million, driven by a $100 million merger involving South Africa’s hearX. Logistics and transportation secured $116 million, and proptech gained momentum thanks to Egypt’s Nawy raising $75 million in the continent’s largest proptech funding to date.

Climate tech, spanning energy, agri-food, logistics, and fintech, accounted for $300 million or 21 percent of H1 2025 funding, maintaining steady investor interest despite a slight dip from last year’s peak. Beyond Africa’s key markets, emerging players like Tunisia’s Kumulus Water and Ghana’s Kofa also attracted attention with $3.5 million and $8.1 million rounds respectively, signaling broader regional growth in startup investment.

Source: Business day