African startups have surpassed the $1 billion milestone in funding in the first five months of 2025, with $254 million raised in May alone.
Data from Africa: The Big Deal reveals that startups on the continent secured a total of $1.055 billion between January and May 2025. April emerged as the most active month, attracting $343 million in funding, while March recorded the lowest with just $50 million.
This year’s pace marks a notable improvement compared to 2024, when the $1 billion threshold wasn’t crossed until mid-July. By the end of 2024, total startup funding in Africa stood at $2.2 billion. The journey to a $1 billion funding in 2024 was led by Egypt’s MNT-Halan’s $157.5 million raise, Nigeria’s Moove’s $100 million, and Kenya’s M-Kopa’s $51 million.
In 2023, African startups reached the $1 billion mark in early April, and in 2022, the mark was hit by late February.
Read also: African startups raised $345m in funding in May
The big four and others
According to the report, Egypt currently leads Africa’s startup funding landscape in 2025, accounting for approximately 31 percent—or just over $332 million—of total investments. South Africa follows with over $273 million, while Nigeria ranks third with more than $162 million. Kenya rounds out the top four, attracting $132 million in funding. The report tracked around 153 deals so far this year, excluding March 2025, when no major funding rounds were recorded.
While Africa’s top four markets continue to lead in deal volume, investment activity is increasingly spreading across the continent. Notably, at least 20 countries have recorded individual deals of $100,000 or more. Among the standout transactions are the $30 million raise by Togolese mobility startup Gozem and the $8 million secured by Ghanaian fintech company Affinity.
Largest deals during the period
South Africa’s healthtech company hearX, secured the year’s largest deal with a $100 million raise during its merger with U.S.-based Eargo. In May, Egyptian proptech firm, Nawy, closed a $75 million round, while another Egyptian fintech startup Bokra, raised $59 million, the highest for any African fintech in 2025.
South African fintech, Stitch, raised $55 million in April. Nigeria’s largest deal came from LemFi, which raised $53 million.
Industry watchers are closely monitoring Nigerian autotech firm Moove as it pursues a proposed $300 million fundraising round. The milestone could propel the vehicle financing startup to coveted unicorn status. Recall that an Uber-led $100 million funding round pushed Moove to a $750 million valuation.
It is noted that equity financing dominated the funding mix, making up 77 percent of total capital raised, while debt accounted for 13 percent.
