Q1 2025 African Startup Funding: A Rebound Fueled by Fintech, Energy & Grit

Africa's tech ecosystem is finding its rhythm again.

In Q1 2025, startups across the continent raised an estimated USD 460 million, signaling a cautious but promising resurgence after a slow 2024. While this is a modest recovery, just slightly below the USD 466 million raised in Q1 last year, it indicates investor confidence is slowly returning.

But beyond the numbers, the stories of the startups behind the headlines truly illustrate Africa’s evolving innovation landscape.

📊 Funding Overview: Who Got What

According to data compiled from Capmad and Business AM Live:

• Total funding: USD 460 million

• Top sectors:

• Top countries: Nigeria, Kenya, South Africa, Egypt, and Togo accounted for 83% of total funding.

Startups Leading the Charge

1. LemFi (Nigeria)

USD 53M Series B | Fintech

LemFi, a remittance and digital banking platform for immigrants, is shaping how the diaspora manages cross-border payments. The Lagos and Toronto-based company is now targeting Asia and Europe following its USD 53M Series B led by Highland Europe.

• Founders: Ridwan Olalere (ex-Paystack), Rian Cochran (ex-Helium Health)

• Notable investors: Left Lane Capital, Y Combinator, Zrosk, and Global Founders Capital

2. PowerGen (Kenya)

USD 50M+ | Renewable Energy

Kenya’s PowerGen is tackling Africa’s power problem by developing commercial and industrial-scale renewable energy solutions. Its new funding supports a 120MW project pipeline across Nigeria, Sierra Leone, and DRC.

• Focus: Solar hybrid systems for off-grid and metro-grid users

• Impact: Clean, stable electricity for underserved communities

3. Gozem (Togo)

USD 30M Series B | Mobility + Fintech

Gozem started as a moto-taxi app and evolved into a full-fledged Super App for Francophone Africa, offering ride-hailing, food delivery, digital wallets, and asset financing. Its USD 30M Series B marks a major bet on the region’s digital transformation.

• Founders: Gregory Costamagna, Raphael Dana

• Lead investors: MSC Group’s SAS Shipping Agencies, Al Mada Ventures

• Next up: Launch of Gozem Money, its digital financial services arm

4. Naked (South Africa)

USD 38M Series B | Insurtech

Naked Insurance is reinventing insurance with a fully digital, AI-powered platform. Users can buy or pause car, home, and contents insurance in minutes—no brokers required.

• Co-founders: Alex Thomson, Ernest North, Sumarie Greybe

• Investors: BlueOrchard, IFC, DEG, Hollard Insurance

• Plan: Expand AI product suite and scale across Southern Africa

5. Enko Education (South Africa)

USD 24M | Edtech

Operating 16 schools across 10 African countries, Enko is tackling the education quality gap with a scalable network of international-standard schools.

• CEO: Eric Pignot

• Investors: Adiwale Fund I, Africa Capitalworks

• Goal: Reach 20,000 students by 2029

🌍 What This Means for Africa’s Startup Scene

This quarter’s data shows two things:

1. Investors are prioritizing fundamentals over flash. Startups solving real, structural challenges (energy, education, finance) continue to attract meaningful capital.

2. The diaspora effect is real—Founders with global exposure, especially in fintech and logistics, are leveraging borderless thinking to build locally grounded but globally scalable companies.

Africa may not be out of the woods, but Q1 2025 proves there is growing momentum. And with startups like LemFi and Gozem leading the charge, it’s only a matter of time before we see another breakout year.

Written by Lawrence Maina. For more tech insights from Africa’s startup frontier, follow me on LinkedIn or explore the latest at Axcel Africa Publishing.