In 2025, funding for African tech startups surged by 50% in the second quarter, reaching USD 426.9 million, a significant increase from the USD 283.9 million recorded in the first quarter. Despite a decrease in the number of startups securing funds, those that did achieved larger funding rounds. Kenya’s Roam and Keep It Cool have collaborated to create Africa’s first fully electric cold-chain delivery network, integrating solar-powered refrigeration with Roam’s electric motorbikes for eco-friendly logistics. Roam focuses on electric mobility solutions for Africa, while Keep It Cool is transforming food supply chains in East Africa through its innovative cold chain platform, Markiti.
In other developments, early-stage venture capital firm Rally Cap has partially exited its investment in South African fintech company Stitch, following a successful USD 55 million Series B funding round. Egyptian prop-tech startup Nawy has expanded into the GCC by acquiring a majority stake in Dubai-based SmartCrowd, enhancing its portfolio with fractional ownership and asset enhancement services.
Meanwhile, PUBG MOBILE is intensifying its focus on Africa’s gaming market, launching local servers in Nigeria and South Africa, along with regional tournaments and Africa-themed in-game features. Engage Capital has offered USD 24.5 million to acquire Lipa Later, a Kenyan BNPL startup that entered administration in March 2025 due to funding challenges.
Several organizations, including Reach for Change and Africa Fintech Foundry, have been appointed as venture partners for Village Capital’s Ecosystem Catalysts Facility, which aims to bolster early-stage support systems across Africa with a USD 4 million investment. Egypt’s Tactful AI has been reacquired by its founders, allowing the company to pursue independent growth and expansion plans.
Reckitt Catalyst has opened applications for its global program supporting health and hygiene startups led by women and underrepresented founders, offering funding, mentorship, and global exposure. Serena Williams joins as Entrepreneur-in-Residence, with applications open until August 10, 2025. Additionally, Visa has launched the fifth edition of its Africa Fintech Accelerator, providing startups with tools, mentorship, and industry connections to scale their solutions.
