The year is off to a bullish start for the African startup space as 40 startups raised $289 million in $100,000 investment deals in January, a 240% increase from the $85 million recorded in January 2024.
According to new data from Africa: The Big Deal, this was the highest amount raised in January since 2022.
Similarly, equity deals, which comprised 90% of the total investment in the $100,000 category, surged to $262 million, making it the second-best January for equity fundraising since 2019.
“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),” the report states.
“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.”
However, the report noted that the number of $100,000 deals recorded in January was lower than in the same period over the past three years.
On a positive note, $1 million+ deals increased by five points to 26 in January, up from 21 in the same period last year, bringing total funding to nearly $300 million.
Four startups from the Big Four—Egypt, Nigeria, Kenya, and South Africa—secured the largest deals of the month, accounting for 60% of total funds raised. However, three out of the four largest deals involved expansion beyond their home markets, either within Africa or globally.
Fintech startup LemFi led the way, raising $53 million to expand further into Asia and Europe, while cleantech energy startup PowerGen followed closely with just over $50 million earmarked for scaling distributed renewable energy solutions across Africa.
Written by Omoruyi Edoigiawerie, a seasoned startup attorney with over a decade of experience. Learn more.
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Meanwhile, South African insurtech Naked secured a $38 million Series B round to automate and expand its product offerings, and Enko Education raised $24 million to grow its network of African schools.
The strong start to 2025 reflects growing investor confidence in Africa’s startup ecosystem, despite the challenges of a global funding slowdown. Sectors such as fintech, cleantech, and edtech continue to attract capital, signaling that African startups are not just surviving but evolving into more scalable and globally competitive ventures.
