African startups recorded a remarkable resurgence in fundraising in the first half of 2025, with total funding reaching $1.35 billion a 78% increase compared to the $800 million raised during the same period in 2024.
According to a report by Africa: The Big Deal, these startups raised funds through $100k+ deals (excluding exits). The standout month was June 2025, when startups secured $365 million, marking not only the strongest monthly performance of the year but also the best in nearly a year.
While June’s impressive numbers contributed significantly to the upbeat results, the momentum had been building steadily throughout the year. Funding surpassed the $250 million mark in four out of the six months of H1 2025, signaling consistent investor confidence and a sustained rebound from 2024’s more modest performance. These impressive funds raised eclipsed the poor funding in March as only $50m in funding was announced, one of the lowest monthly tallies since late 2020.
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The monthly average funding now stands at $237 million, up from $187 million in full-year 2024, and significantly higher than $133 million in H1 2024. The performance of H1 2025 nearly matches that of H2 2024, which closed at $1.37 billion, reflecting only a marginal 1.5% decrease in half-year growth. This consistency suggests a stabilizing fundraising environment, with both equity and debt financing contributing meaningfully to the upward trend.
In the equity space, startups raised a total of $950 million in the first half of 2025—up 79% compared to H1 2024, but down slightly by 7% relative to H2 2024. The debt financing landscape also saw a major revival. Although debt funding had lagged earlier in the year, with only $177 million raised by the end of May (compared to $255 million in the same period last year), June brought a major turnaround.
Startups secured $227 million in debt funding during the month, the highest monthly debt figure seen in more than two years. This includes a notable $137 million debt round by fintech firm Wave. The funding led by Rand Merchant Bank (RMB) and backed by global development finance institutions, including British International Investment (BII), Finnfund, and Norfund, underscores investor confidence in Wave’s low-cost financial services model.
According to the fintech unicorn, it disclosed that the funding will be used to advance its mission of making financial services affordable and accessible to users.
Also, other startups that raised in June include Basigo, a Kenyan electric mobility company that secured $42 million in funding to expand its electric bus operations in Kenya, contributing to sustainable transportation initiatives. The “Big Four” countries (Kenya, Nigeria, Egypt, and South Africa) continued to dominate, but Senegal stood out in June due to Wave’s significant raise.
By the end of June, total debt funding for H1 2025 reached $400 million, representing a 55% increase over H1 2024 and effectively matching the $404 million raised in H2 2024.
While the first half of 2025 funding total remains impressive compared to the previous year, it remains the second poorest first half since 2022 and the third slowest half out of the seven since then. However, considering that the African startup funding space is generally considered to be undergoing an alignment, the numbers give more to celebrate.
These figures highlight a robust and resilient African startup ecosystem. With funding levels nearly doubling compared to early 2024 and maintaining parity with late 2024, the continent’s innovators appear well-positioned for sustained growth in the second half of the year.