African startup funding raised a total of $1.4 billion during the first half of 2025, showing strong signs of recovery despite a global slowdown in venture capital. While this figure makes it the second-lowest first half since 2022, it still reflects a healthy rebound compared to 2024. The performance is even more promising considering that most of the funding came as equity, not loans.
Of the $1.4 billion raised, startups secured $950 million through equity, which is 68% of the total. Debt financing made up $400 million (28.5%), and grants contributed the remaining $50 million (3.5%). This shift toward equity shows growing investor confidence in African startups.
June Sets 2025 Record With $365 Million
June 2025 stood out as the best month for African startup funding so far this year, with companies raising $365 million. This beats April’s $343 million and marks the strongest month in nearly a year.
Except for February and March—when startups raised $119 million and just $50 million, respectively—every other month in 2025 saw funding cross the $250 million mark. As a result, the average monthly funding in H1 2025 now stands at $237 million, far above the $187 million average for all of 2024 and $133 million for the first half of last year.
Senegalese fintech startup Wave led June’s numbers by raising $137 million in debt financing. Rand Merchant Bank (RMB) led the deal, supported by British International Investment (BII), Finnfund, and Norfund. Wave plans to use the money to make its mobile financial services more affordable and accessible.
Wave’s funding brought June’s total debt financing to $227 million—the highest monthly debt total in more than two years.
Notable African Startup Deals in H1 2025
- In April, South African healthtech firm hearX raised $100 million through a merger with U.S.-based Eargo. hearX uses smart technology to make hearing care more affordable.
- In May, Egyptian proptech company Nawy secured $75 million—the largest-ever deal for a property technology startup in Africa.
- In January, Nigerian payments startup LemFi raised $53 million in a Series B round. LemFi aims to expand its remittance services across Europe and Asia.
- Also in January, Kenya’s PowerGen secured $50 million to develop renewable energy projects across Nigeria, Sierra Leone, and the Democratic Republic of Congo. The company plans to build a 120MW portfolio of off-grid and commercial power projects.
Several startups stood out with big funding rounds in the first half of the year:
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