African start-ups have reached a significant milestone in 2025, raising more funding this year than they did in 2023, according to a report by Africa: The Big deal.
Observers of the ecosystem note that this growth comes after two consecutive years of decline, with fundraising dropping 35% in 2023 and a further 25% in 2024.
In the first half of 2025, 238 start-ups in Africa raised at least $100,000 each. Observers noted that this figure was consistent with trends seen since mid-2023, reflecting a steady flow of capital into the continent’s emerging start-ups.
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So far, the continent has recorded a 33% year-on-year increase in start-up fundraising, marking a refreshing shift in momentum. Last month, start-ups across the continent secured $162 million in funding (excluding exits), with 79% of the capital raised through equity investments.
Across the continent, 32 ventures raised at least $100,000, including 16 start-ups that secured $1 million or more. Among these, six companies crossed the $10 million mark, demonstrating continued investor appetite for high-growth sectors.
However, what makes 2025 even more remarkable is that total funding has not only exceeded 2024 levels but has already surpassed the amount raised in 2023. While African start-ups secured “nearly $3 billion” in 2023, they are on track to finish 2025 with “over $3 billion” and the year is not yet over.
The growth is not limited to total funding. Equity investments alone have surpassed 2023 levels, reflecting renewed investor confidence in African innovation. The year has also seen the first two IPOs in over six years. In South Africa, fintech Optasia listed on the Johannesburg Stock Exchange on November 4, raising $345m in the process, at a market cap of $1.4b. On the opposite side of the continent, Moroccan fintech Cash Plus raised $82.5m through its IPO on the Casablanca Stock Exchange on November 25, at a $550m valuation.
It is worth noting that out of the top 100 most funded start-ups on the continent, roughly four out of five are headquartered or have their main office in one of the ‘Big Four’. The most represented country is South Africa, followed closely by Nigeria.
The Big Four for a long time have continued to attract the vast majority of the funding on the continent, with at least three-quarters of the funding going to just five cities: Cairo, Cape Town, Johannesburg, Lagos, and Nairobi.
In recent times funding is much more balanced between the four key markets, and as a result, between the four main regions (unfortunately Central Africa is barely represented in the numbers in 2025). In terms of total funding raised (excluding. exits), Kenya is in the lead, followed by South Africa, Egypt, and Nigeria. If we look specifically at equity, which is probably more relevant in this case, South Africa leads, followed by Egypt, Nigeria, and finally Kenya.
Notably, the year 2025 has recorded notable exit activity, including Walletdoc’s acquisition valued at more than $23 million. South African digital banking giant Capitec acquired payment processor Walletdoc in a deal worth up to R400m ($23.5m), signaling a fresh offensive in the country’s fiercely contested merchant services battleground.
The acquisition, signed on December 5 and announced Monday, sees the Stellenbosch-based bank take full ownership of the 10-year-old fintech. The move is a clear bid to wrestle market share from incumbents and agile challengers like Yoco and Nedbank in the SME payments space.
Another notable trend that continues to strengthen in 2025 is the growing role of debt financing in Africa’s start-up ecosystem. In October 2025, start-ups were reported to have raised $935 million in debt, already surpassing the total debt raised in all of 2024 and 2022. In terms of funding composition, debt represented 42% of total funding in 2025.
As the year enters its final stretch, 2025 continues to show remarkable progress for Africa’s start-up ecosystem. Total funding has reached $3 billion so far (excluding exits). Both total equity raised and the number of start-ups securing $1 million+ have risen significantly.
With rising funding, increased equity investment, and growing exit activity, 2025 is shaping up to be a landmark year for Africa’s start-up ecosystem.