Africa’s Startup Scene: The Big Four Dominate Startup Funding as Fintech Leads The Charge

Africa’s startup ecosystem continues to flourish, and the latest data reveals a clear trend. According to a recent report by Africa: The Big Deal, the “Big Four” which comprises Nigeria, South Africa, Kenya, and Egypt, dominate the continent’s venture funding landscape.

Among the Top 100 most-funded startups in Africa, nearly four out of five are headquartered or have their main operations in these four countries. South Africa leads the pack with 23 ventures, followed closely by Nigeria with 22.

While South Africa takes the top spot in total numbers, Nigeria outshines in terms of high-performing ventures. Seven of the Top 20 startups are Nigerian, which include heavyweights such as Opay, Flutterwave, Moove, Interswitch, Moniepoint, PalmPay, and Andela.

Kenya and Egypt round out the Big Four with 17 ventures each, but their sectoral compositions differ. In South Africa, 15 of its 23 startups are fintech firms, such as TymeBank, Onafriq (formerly MFS Africa), Jumo, and Planet42. Nigeria and Egypt are more balanced, with fintech accounting for about half of their ventures.

Kenya, however, shows a unique profile — only two fintechs made the list: Pula and M-Kopa, the latter recently reclassified as fintech despite its origins in the energy sector.

Beyond the Big Four

While the Big Four dominate in terms of funding, other African nations are also making their mark. West African country Ghana, leads the second tier, boasting five startups which include mPharma, Fido, CarePoint, Zeepay, and PEG (now part of Bboxx following a 2022 acquisition).

Western Africa emerges as the most represented sub-region, with 31 startups, while Southern, Eastern, and Northern Africa are nearly tied. Payments giant Chipper Cash stands out as a cross-border case, with strong ties to both Ghana and Uganda, making its regional classification less straightforward.

Funding Insights: Fintech Leads, But Other Sectors Are Rising

As expected, fintech leads the charge in Africa’s startup funding scene, accounting for 42 of the Top 100 ventures. This sector has secured over $1 billion in 2025 so far, claiming 45-51% of total funding and nearly half of all $10M+ rounds. This is up from 28% in mid-2024 lows, fueled by payments, remittances, and credit innovations.

The sector’s appeal lies in solving Africa’s foundational financial gaps, 90% of transactions are still cash-based, yet mobile internet users are projected to hit 475 million by year-end. However, the narrative that “only fintechs can attract big money in Africa” doesn’t fully hold true. The list highlights a diverse startup landscape, with several other sectors showing strong representation.

•Energy: Africa’s energy sector primarily cleantech and renewables has ballooned to 18-20% of 2025 funding ($950M+ so far, much via debt), outpacing logistics and rivaling fintech in growth velocity.

With 600 million off-grid residents and climate pledges like AfCFTA unlocking $5B in green trade, investors are betting on solar, efficient cookstoves, and pay-as-you-go models to bridge infrastructure gaps. A major category, with well-known names includes Sun King, d.light, and Burn driving innovation in clean and sustainable energy.

•Transport & Logistics: Logistics sector snagged 10% of Q2 2025 funding driven by e-mobility policies. This sector features companies like Moove (Nigeria), Yassir (Algeria), and Swvl (Egypt).

•AgriTech: The agritech sector has emerged as a resilient and high-impact area within the continent’s startup ecosystem, driven by the need to address food security, climate resilience, and productivity for smallholder farmers. Active startups include ventures such as Apollo Agriculture and ThriveAgric.

•Retail & Commerce: Africa’s retail and e-commerce sector is transforming the continent’s $600 billion+ retail market, where informal trade dominates (90%+ of transactions). With over 50% mobile penetration and 600 million+ internet users projected by 2028, startups are digitizing supply chains, enabling B2B marketplaces, and integrating payments for SMEs, which account for 80% of retail activity. Players in this sector include MaxAB/Wasoko, TradeDepot, and Omnibiz.

•HealthTech: Africa’s healthtech sector has emerged as a resilient and high-impact area, experiencing steady growth. Ventures in this category include LXE Hearing (formerly HearX), Pharma, and Cape Bio Pharms.

Outlook

The data above highlights both diversity and concentration. While the Big Four dominate in terms of numbers and funding, startups from smaller markets are increasingly making their presence felt.

Notably, while Fintech remains a driving force, other sectors from energy to logistics and healthtech are proving that Africa’s innovation story is broader than mobile payments and digital banking.