African Startups Raised Over $1.4 Billion in H1 2025 — What’s Driving the Rebound?

After a muted 2023, Africa’s startup funding landscape is picking up serious pace. According to recent figures published by Africa: The Big Deal, startups on the continent raised over $1.4 billion in funding in H1 2025—through deals of $100,000 and above, excluding exits.

This marks a +78% increase compared to H1 2024, when African startups raised $800 million. The numbers are not only promising—they’re a signal of renewed investor confidence, and a maturing ecosystem that’s finding its rhythm again.

Source :Africa The Big deal 

H1 in Context: A Return to Consistency

Far from a one-off spike, this performance is the result of steady momentum. According to the report, funding in June reached $365 million, making it the strongest month since mid-2024. However, the real story lies in the consistency: four of the six months in H1 surpassed $250 million in total deal volume.

The average monthly total now stands at $237 million, compared to just $133 million in H1 2024—and even topping 2024’s full-year monthly average of $187 million.

Equity and Debt: Two Engines of Growth

Another notable feature of H1 2025 is the strength of both equity and debt funding:

• Equity raised: $950M ↳ Up 79% YoY; slightly down from H2 2024, showing continued VC appetite

• Debt raised: $400M ↳ Up 55% YoY; driven by a huge $137M debt deal for Wave in June

Debt had underperformed earlier in the year ($177M until May), but the record-breaking June turned the narrative around. In fact, it was the highest monthly debt figure in over two years, reinforcing the growing role of alternative financing across Africa’s more mature startups.

Where the Capital Is Flowing

While a country-specific breakdown will follow later this month, the top-performing markets remain familiar:

• 🇳🇬 Nigeria

• 🇰🇪 Kenya

• 🇿🇦 South Africa

• 🇪🇬 Egypt

Interestingly, Togo (boosted by Gozem’s $30M round), Senegal, and Morocco also made strong showings—pointing to a slow but visible decentralization of capital beyond the "Big Four."

Sectors leading the charge:

• Fintech – Still the dominant force, both in volume and ticket size

• Energy & Climate – Especially infrastructure-scale deals like PowerGen

• Mobility & Logistics – Gozem and others attracting regional growth capital

• Insurtech & Edtech – With meaningful rounds for players like Naked and Enko

What This Tells Us

This isn’t just a bounce back—it’s a recalibrated landscape. Founders are raising smarter, often blending debt and equity, and investors are placing larger bets on proven models and repeat founders.

It also underscores something important: Africa is not dependent on just one sector or market. Multiple industries are raising capital, and multiple regions are maturing simultaneously. It’s a healthier funding story than in the boom years of 2021–2022, when the spotlight leaned heavily on B2C fintech in just a handful of markets.g📈 The Road Ahead: Sustainable Growth

Final Thought

This rebound isn't just about the numbers; it's about the resilience and adaptability of Africa's startup ecosystem. The diversified flow of capital across sectors and regions indicates a stronger, more sustainable growth trajectory. This mature approach to funding, combining strategic equity with crucial debt, sets the stage for a more robust and equitable future for African innovation.