Africa Startups Raised $442 Million in October as Funding Confidence Returns

October proved to be a remarkable month for Africa’s startup ecosystem, as ventures across the continent collectively raised over $442 million in funding, excluding exits.

This performance is reported to be the second-best month of 2025, trailing only behind July. According to a report by Africa: The Big Deal, 76% of the total ($334 million) came in the form of equity financing, making October the strongest month for equity funding so far in 2025.

Leading the charge were two mega-deals: First is Spiro, a leading African electric two-wheel mobility company, which secured $100 million, the largest-ever investment in an e-mobility startup on the continent.

The funding will be used to grow its electric motorcycle assembly and its battery-swapping network, with $75 million coming from the African Export-Import Bank (Afreximbank). The company aims to deploy over 100,000 electric vehicles by the end of 2025.

Also, Nigerian fintech company Moniepoint secured an additional $90 million in its Series C funding round, bringing the total to $200 million. The funding, led by investors like Visa and Development Partners International, will accelerate its expansion across Africa and into international markets, with a goal of supporting small businesses and entrepreneurs. Other significant rounds included Tagaddod, Ctrack, and Mawingu, each raising $20 million or more in equity.

The remaining funding was largely debt-based, continuing a trend seen throughout the year. Recall that in October, reports revealed that start-ups raised $935 million in debt, surpassing the totals for both 2022 and 2024, and putting the ecosystem on track to exceed the $1.1 billion record set in 2023. Last month, Debt was reported to represent 42% of all funding raised in 2025, the highest share since 2019.

Notably, two major bond issuances stood out this year: Egyptian fintech unicorn MNT-Halan, which raised EGP 3.4 billion ($71.4 million) through its seventh securitized bond issuance, extending its record as the country’s largest private non-bank issuer in the securitization market. Also, Egypt-based financial technology company valU with approximately $23 million.

In total, 53 ventures managed to raise at least $100,000 in October, a figure above the recent monthly average. Analysts note that this momentum signals a renewed sense of optimism across Africa’s startup ecosystem, with key growth indicators showing double-digit improvements in most metrics.

Cumulatively, startups on the continent have raised $2.65 billion so far in 2025, marking a 56% year-on-year growth compared to the same period in 2024. This figure also surpasses performance levels seen during the corresponding period in 2023.

Equity funding alone rose by 31% year-on-year, nearly matching total figures recorded between January and October 2023. Furthermore, 179 startups have raised at least $1 million since the beginning of the year — a 13% increase compared to 2024, and slightly higher than 2023’s figure of 178 ventures.

Over the past 12 months (Nov 2024–Oct 2025), African startups have collectively raised $3.2 billion, representing a 50% year-on-year increase. Of this, $1.9 billion came from equity funding — a 38% rise — while 207 ventures secured at least $1 million during the same period, up 8% year-on-year.

Looking ahead

Industry watchers are optimistic that the final two months of 2025 could mirror the strong finish of 2024, when startups attracted $540 million between November and December.

While the ultimate performance of 2025 will depend on activity in the coming months, the current trajectory paints a promising picture for Africa’s startup landscape, one defined by resilience, renewed investor confidence, and steady growth momentum.