Fintech Reclaims Dominance in African Startup Funding with $640M in H1 2025

The Fintech sector has once again taken the lead in African startup funding, attracting 45% of all investments (excluding exits) in the first half of 2025, securing approximately $640 million, according to a report by Africa; The Big Deal.

This performance is consistent with 2024’s 47% share and marks a rebound from a relative decline in previous years, when fintech’s share had dropped to 28%. Over the past 12 months, fintech has accounted for 51% of total funding, nearing its historical peak.

The five largest fintech deals in H1 2025 include;

Wave Money’s $137 million debt raise

Wave, a digital payment and mobile financial services provider, delivering secure, accessible, and reliable financial payments, secured $137 million in debt financing. The deal was led by Rand Merchant Bank, with backing from global development finance giants like British International Investment (BII), Finnfund, and Norfund.

The funding will help scale its mobile money operations and broaden financial access for underserved communities across the continent, the company said in a statement.

Bokra’s $59 million sukuk issuance in Egypt

Bokra, an Egyptian fintech successfully raised 3 billion Egyptian pounds ($58.9 million) through its inaugural sukuk issuance. The Mudaraba sukuks were issued for Aman Project Finance, a subsidiary of Aman Holding. This marked a key milestone for Bokra as it ventures into the project finance sector with Sharia-compliant debt instruments.

Stitch’s $55 million Series B in South Africa

South African payments infrastructure startup Stitch, secured a $55 million Series B funding round, bringing its total funding to $107 million. This investment according to the company will be used to expand its in-person payment offerings, enhance its online payment solutions, and facilitate its entry into card acquiring.

The round was led by QED Investors and included participation from Norrsken22, Flourish Ventures, Glynn Capital, and angel investor Trevor Noah. Existing investors like Ribbit Capital and PayPal Ventures also contribute

LemFi’s $53 million Series B in Nigeria

LemFi, a Nigerian-born fintech startup secured a $53 million Series B funding round. This investment, led by Highland Europe, will be used to expand LemFi’s global operations and introduce new financial products, particularly for the African diaspora.

The funding round also included participation from existing investors like Left Lane Capital, Palm Drive Capital, Y Combinator, and Endeavor Catalyst. This brings LemFi’s total funding to $85 million. 

MNT-Halan’s Tasaheel $50 million bond issuance in Egypt

Egyptian fintech giant MNT-Halan tapped into public debt markets after its subsidiary Tasaheel Holding Company successfully issued EGP 2.5 billion (approximately $49.4 million) in corporate bonds.

The move highlighted a growing trend among African credit-focused startups to seek alternative financing beyond traditional venture capital, increasingly looking towards local public debt markets and potential initial public offerings (IPOs) to fuel their growth and achieve sustainability.

Regional Deals

In terms of regional funding, Kenya stood out as an exception among the continent’s “Big Four” markets, raising just $23 million compared to over $100 million each for Nigeria, South Africa, and Egypt. The limited fintech funding in Kenya is likely due to the country’s uniquely robust mobile money ecosystem, where 95% of adults own a mobile money account and 82% use it weekly (GSMA).

Notably, Fintech deals also outpaced non-fintech transactions in size, with a median value of $1.7 million and an average of $10 million, compared to $0.5 million and $4.8 million, respectively, for non-fintech deals.

While fintech represented only 27% of total deal volume in H1 2025, its share increases to 31% for deals above $1 million and 46% for deals exceeding $10 million.