-1739262625934-20937458.png&w=1920&q=75)
- African startups raised $289 million in January 2025
- The figure is a 240 per cent increase from the $85 million raised in January 2024
- The Big Four countries of Nigeria, Kenya, Egypt, and South Africa led the pack with four of the largest deals recorded in the month
Forty African startups raised $289 million in January 2025 through several deals worth $100,000 and above.
The figure is a 240 per cent increase compared to the $85 million raised in January 2024, making it the second-best January for startup funding since at least 2019, trailing only behind January 2022 during the peak of the funding boom.
This is according to the latest data from Africa: The Big Deal, demonstrating the high note of fundraising performance on which African startups began the year.
The data shows that equity financing dominated the fundraising landscape, accounting for $262 million, over 90 per cent of the total investment in the $100,000 category.
“January 2025 has been a pretty solid month when it comes to startup fundraising in Africa, with a total of $289 million raised through $100,000+ deals (excluding exits).
“This is nearly 3.5 times the amount raised in January 2024 ($85 million) and actually the second-best January since at least 2019, second only to January 2022, in the heart of the funding heatwave,” it stated.
The Big Four lead the pack
The data also shows that the four largest deals in January 2025 alone accounted for nearly 60 per cent of the total funding raised across the continent.
Interestingly, the four largest deals originated from one of Africa’s Big Four countries: Nigeria, Kenya, Egypt, and South Africa.
Three out of the four largest deals reflected African startups' growing interest in expanding their operations beyond the continent.
Top deals show diversification
In January 2025, the largest deals on the African startup scene include: Lemfi, a fintech startup, securing $53 million to further its expansion into Asia and Europe.
PowerGen, a renewable energy company, secured over $50 million to establish a scalable platform for distributed renewable energy solutions across Africa.
Also, South Africa-based Naked, an insurtech, raised $38 million in a Series B round to automate and expand its product offerings.
Furthermore, Enko, an education-focused startup, raised $24 million to continue expanding its network of African schools.
African startups raised $2.2 billion in 2024
Recall that African startups raised $2.2 billion in 2024, a 25 per cent drop compared to the $2.9 billion raised in 2023, attributed to a slow start in funding in the year.
Kenya recorded more investments in African startups in 2024 ahead of Nigeria for the second consecutive year.
The East African region attracted the highest startup funding on the continent in 2024, worth $725 million, with Kenya accounting for $638 million or 88 per cent of the region’s total raise in the year.
The raises came from equity, debt, and grants (excluding exits), with a total of 188 ventures raising $1 million or more in 2024 (excluding exits), which is 10 per cent less than what was recorded in 2023.
Emergence of two African unicorns made a difference
Much of the raises were made in the second half of 2024, which saw a rebound driven by the emergence of two unicorns in the period.
According to a report by Africa: The Big Deal, the funding rebound in H2 2024 saw a $1.4 billion raise, which marked the second-best semester since the beginning of the ‘funding winter’ in mid-2022.
Recall that on October 29, 2024, Nigeria-based Moniepoint Inc. raised $110 million in equity financing to become Africa’s eighth startup to have achieved unicorn status.
Moniepoint joined Africa’s unicorn league that already had the likes of Interswitch, Opay, Flutterwave, Wave, Andela, Chipper, and MNT-Halan.
The Series C financing round further boosted the fintech’s valuation to at least $1 billion, increasing from around $400 million in a 2022 funding round where it raised $50 million.
On December 17, 2024, South Africa’s Tyme Group raised $250 million in a Series D round to reach a $1.5 billion valuation, becoming Africa’s ninth unicorn.
The funding round was led by Nu Holdings, the parent company of Latin America’s most valuable fintech, Nu Bank, as it invested $150 million for a 10 per cent stake. M&G Catalyst Fund and existing investors also participated in the round.
7 African AI startups founded by Nigerians
Meanwhile, TheRadar earlier reported that the Artificial Intelligence (AI) revolution brought about innovations and startups leveraging technology to address pressing human needs.
The African continent is not left behind in this wave of revolution. The continent boasts a handful of startups changing the world, most of which are founded by Nigerians or located in Nigeria, including these seven.
