African startups have collectively raised $1 billion between January and May 2025, marking a 40% increase compared to the same period in 2024.
The year began on a strong note with startup funding at $289 million in January 2025. However, the momentum dropped in the following months, with startups raising $119 million in February, followed by $50 million in March, the lowest so far.
April saw a much-needed rebound with $343 million in funding, hinting at renewed investor interest, however, May has slowed the pace once again with $254 million raised across 39 disclosed deals.
Despite this slowdown, total funding for the first five months still reached the billion-dollar mark, a positive sign for the African tech ecosystem.
Surprisingly, African startups have raised over $2.5 billion from June 2024 to June 2025, the highest 12-month total since early 2024.
Egypt has emerged as the top destination for startup capital in Africa so far in 2025, pulling in $330 million, which accounts for 31% of all disclosed funding raised so far. The country has gotten over 16 deals with 11 disclosed investments, boosting its funding activity by 130% compared to the same period in 2024.
The major deals in May 2025 came from Egypt, with the country being responsible for six out of the seven startups, which raised more than $10 million in May 2025. Egypt’s proptech startup, Nawy, saw the highest funding at $75 million, which included a $52 million series A round and a $23 million debt financing.
Other major deals from Egypt include MNT-Halan’s $50 million funding, Valu’s $27 million, which was raised from Saudi Arabian investors, fintech startup Thndr’s $15.7 million round, mobility firm Slyndr’s $15 million round, and MoneyFellow’s $13 million pre-series C.
South African health-tech company, AURA, also made headlines with a $15 million series B co-led by Partech and the Cairo Angels Innovation Fund (CAIF).
While Egypt took the crown, the rest of Africa’s “Big Four” still maintained the top positions in the continent’s funding landscape.
South Africa accounted for 26% of the total funding, Nigeria raised 15%, and Kenya took 12%.
Kenya, which led the continent’s funding earlier in the year, has seen a notable decline in major deals in recent months.
Despite the $1 billion milestone, the month-to-month fluctuations in funding reflect a cautious optimism among investors.
Still, with Egypt’s breakout performance and a solid 12-month showing, there’s a positive optimism that African startup funding is finding its footing again.
