African Startups Poised to Surpass 2024 Funding Levels, Nearing $2.2 Billion in 2025
LAGOS,Nigeria - African startups are on track to perhaps exceed last year’s funding record,having collectively raised $2.2 billion in venture capital so far in 2025, according to a report released Tuesday by Africa: The Big Deal. This figure is just $40 million shy of the $2.24 billion total secured across the continent in 2024.
The report details a strong performance in the third quarter of 2025, with startups raising $785 million - a substantial increase from the $461 million raised in Q1, though slightly lower than the $963 million seen in Q2. This Q3 total also significantly outperforms previous years, exceeding the $649 million raised in Q3 2024, $496 million in Q3 2023, and $612 million in Q3 2022.
September 2025 alone saw 58 startups secure $140 million in funding,closely mirroring the $146 million raised in September 2024 and surpassing the $124 million recorded in the same month last year.
“From a volume point of view, this is below average, yet equivalent to what had been raised in September 2024 and above the September 2023 tally,” stated Max Giacomelli, co-founder of Africa: The Big Deal. “What is notable, though, is the number of ventures that raised at least $100,000 last month – the second-highest in a year, just behind July.”
The funding breakdown for september reveals $105 million (75%) came from equity financing,$32 million from debt,and $3 million from grants,including 16 match-funding grants from DEG Impulse under its develoPPP Ventures initiative in East africa.
Five startups led the funding rounds in September: Nigerian fintech Kredete with a $22 million Series A, Pura Beverage securing $15 million in a Series B raise, South African identity verification startup Contractable with $13.5 million,Egyptian AI firm Fill closing a $12.5 million Series A, and South African edtech company The Invigilator raising $11 million.
Beyond funding, September also saw five notable exits. South African consortium Twofold Capital acquired fintech Skylight, edtech Rekindle acquired EpiTek, and fintech Street Wallet bought Digitip. In north Africa,Moroccan logistics startup Cathedis was acquired by super app Ora Technologies,and Egyptian healthtech firm to prayer completed the acquisition of Exmgo.
Analysts attribute the positive trend to growing investor confidence in Africa’s innovation landscape, despite a global slowdown in venture capital. The “Big Four” – Nigeria, Kenya, South Africa, and Egypt - continue to dominate investment, attracting the majority of funding due to their established ecosystems, talent pools, and expanding domestic markets.
If current momentum continues, 2025 is projected to be one of the strongest fundraising years in African startup history, signaling renewed optimism in the continent’s digital economy.