Between January and May 2025, African startups amassed $1 billion in funding, marking a 40% increase compared to the same period in 2024. The year began with a strong $289 million in January but saw a decline in the following months, with funding dropping to $119 million in February and hitting a low of $50 million in March. April, however, revived hopes with $343 million raised, indicating renewed investor interest, though May saw a slight dip to $254 million across 39 deals.
Despite the fluctuations, the $1 billion milestone in the first five months reflects a promising trajectory for Africa’s tech sector. In an impressive 12-month span from June 2024 to June 2025, startups in Africa secured over $2.5 billion, the highest since early 2024.
Egypt has emerged as the leading destination for startup funding in 2025, attracting $330 million, which accounts for 31% of all disclosed funding. With over 16 deals, including 11 disclosed, Egypt’s funding activity surged by 130% compared to the previous year. The country led major funding rounds in May, with six out of seven startups securing over $10 million. Notably, Egyptian proptech startup Nawy raised $75 million, comprising $52 million in a Series A round and $23 million in debt financing.
Other significant Egyptian deals in May included MNT-Halan’s $50 million raise, Valu’s $27 million from Saudi investors, fintech firm Thndr’s $15.7 million round, Slyndr’s $15 million in mobility funding, and MoneyFellows’ $13 million pre-Series C.
In South Africa, health-tech startup AURA secured $15 million in a Series B round, co-led by Partech and the Cairo Angels Innovation Fund, highlighting advancements in the region’s health technology sector.
While Egypt leads, the other members of Africa’s “Big Four” remain strong players. South Africa contributed 26% of the total funding, Nigeria 15%, and Kenya 12%. Kenya, once a leader in startup funding earlier this year, has seen a drop in high-value deals recently.
Reaching the $1 billion mark, despite monthly variations, suggests that investor confidence is cautious yet optimistic. Egypt’s remarkable performance and robust funding over the past year indicate a renewed momentum in African startup investment.
