Fintechs Dominate as Nigerian Startups Join Africa’s $1.1 Billion Funding Boom in 2025

Africa’s technology ecosystem has witnessed a major resurgence in 2025, with startups, led by fintech innovators, raising a remarkable $1.1 billion in funding during the first three quarters of the year. The figure, captured in Disrupt Africa’s 10th African Tech Start-ups Funding Report, equals the total amount raised across all of 2024, signaling renewed investor confidence in the continent’s digital economy.

The report reveals that the “Big Four” African markets — Egypt, South Africa, Nigeria, and Kenya — continue to dominate funding activity, with Egypt taking the lead after securing 31% of total funding and achieving an impressive 130% growth compared to last year. The country’s strong performance in the first half of 2025 set the tone for a more vibrant tech investment landscape across the continent.

In Nigeria, fintech companies remain the cornerstone of startup funding, attracting investors with innovative solutions in payments, lending, and financial inclusion. Analysts note that despite global economic headwinds, local fintech firms continue to bridge financial access gaps and scale beyond national borders — a trend that positions Nigeria as a vital hub in Africa’s digital finance evolution.

According to the report, $343.2 million was raised in the third quarter alone, slightly below the $426.9 million recorded in Q2, yet strong enough to reverse the slowdown experienced in 2024. South Africa followed closely with notable activity, including a major September deal in which identity verification startup Contractable secured $13.5 million from international investors.

Industry experts believe that Africa’s 2025 funding rebound is driven by a combination of improved investor sentiment, robust fintech growth, and an expanding pool of innovative startups in emerging sectors such as proptech, healthtech, and greentech. With the final quarter still underway, stakeholders remain optimistic that Africa’s tech ecosystem could surpass the $1.3 billion funding mark by year-end — a clear signal that the continent’s innovation engine is back on track.

source: The Guardian