The end of 2024 felt like a turning point for Africa’s startup ecosystem.

With two unicorns Moniepoint and Tyme minted in the final quarter, optimism surged with predictions that the continent had entered a new era of rapid scale and significant investors funding.

It was the first time since early 2023 that more than one unicorn had been minted in a single quarter, raising hopes that the momentum would continue into the new year. Analysts viewed them as symbols of resilience and renewed confidence in the African tech ecosystem, amid a challenging funding winter.

This saw many set high expectations for 2025. But as the year progressed, that optimism met a sobering reality. The unicorn pipeline stalled, deals slowed, and the much-anticipated breakout stories never materialized.

Instead of acceleration, the year delivered a pause marked by cautious investors, delayed scale-ups, and startups struggling to reach the valuations once thought inevitable. Throughout 2025, no new unicorns emerged.

Nigeria mobility fintech Moove, generated considerable anticipation, with persistent rumors of a potential $300 million equity round that could push it into unicorn territory, alongside speculation about a massive $1.2 billion debt raise. Yet, neither of these materialized during the year.

According to a recent report by Africa: The Big Deal, in terms of funding, Africa’s unicorns raised approximately $100 million in equity in 2025, primarily from the completion of Moniepoint’s Series C round. This marked the lowest annual equity total for unicorns since 2020, a year when there was only one unicorn on the continent.

When debt financing from Wave ($137 million) and MNT-Halan (about $120 million) is included, the total capital raised reaches roughly $358 million, still the lowest figure since 2020.

The absence of major equity rounds also meant that there were no updates to unicorn valuations in 2025, as such adjustments typically accompany new funding announcements. While analysts have speculated that some unicorns may now be worth more or less than their last reported valuations, these remain unconfirmed.

Of the six unicorns minted between 2019 and 2020, only Interswitch and Flutterwave have raised equity since then, both in 2022. Wave has secured significant debt, but OPay, Andela, and Chipper have not announced new funding in over three years.

IPO activity was similarly muted. It is understood that many African unicorns have not publicly committed to IPO timelines, often focusing on growth and sustainability rather than immediate listings. Flutterwave was widely perceived as one of the few African Unicorns likely to pursue an IPO last year, but it has repeatedly emphasised that listing is contingent on profitability and market conditions rather than imminent plans.

However, following Flutterwave’s acquisition of open-banking startup Mono Technologies in January 2026, the company says it will boost its profitability drive and strengthen its position for a potential initial public offering (IPO).

Speaking in an interview with Bloomberg, Agboola said Flutterwave’s current focus is firmly on profitability and infrastructure rather than rapid expansion.

“Right now, our focus is profitability, resilience and better infrastructure, and that is why we acquired Mono,” he said, adding that the acquisition makes Flutterwave “a better candidate for everything,” including a possible IPO.

Meanwhile, two non-unicorn African ventures, Optasia in South Africa and Cash Plus in Morocco went public in 2025, marking the continent’s first IPOs in over six years.

In the fintech sector, M-Kopa stood out after raising approximately $166 million in a Series F round and reporting its first-ever profit in 2025, signaling potential progress toward a $1 billion valuation. Other major players such as Onafriq, Jumo, PalmPay, Yoco, and Kuda remained relatively quiet. However, emerging fintechs like Stitch ($55 million), LemFi ($53 million), Naked ($38 million), and valU ($27 million) attracted notable equity investments.

In the energy sector, Sun King and d.light demonstrated strong engagement with capital markets through securitization and structured financing. Sun King also raised $40 million in equity toward the end of the year. Still, high valuations remain challenging in this asset-heavy industry.

Bboxx recorded no major funding activity, while SolarSaver ($60 million), PowerGen ($55 million), and Wetility ($28 million) secured significant equity. Burn raised $90 million in debt.

Mobility startup Spiro recorded the largest equity transaction in its category with a $100 million raise. Planet 42 remained inactive, while Moove and Yassir were surrounded by speculation about future funding rounds or a possible IPO in 2026. Gozem raised $30 million, split evenly between equity and debt.

Among retail-focused startups, MaxAB-Wasoko made headlines through its acquisition of Fatura, rather than through a funding round. TradeDepot and Twiga Foods remained silent on new capital raises. Beyond these sectors, attention remains on Nawy, which raised $52 million in equity and $23 million in debt, and healthtech firm LXE Hearing, which secured $100 million through a merger.

Overall, 2025 was a year marked more by caution than celebration in Africa’s unicorn ecosystem. While capital continued to flow into select startups, the absence of new unicorns, limited valuation updates, and subdued IPO activity underscored a more restrained and uncertain phase for the continent’s high-growth ventures.

Outlook

While momentum in 2025 may appear to have dwindled, it could ultimately prove to be a necessary reset rather than a permanent slowdown. Investors are reportedly becoming more selective, prioritizing sustainable business models, clear paths to profitability, and stronger unit economics over rapid, valuation-driven growth.

Notably, companies like Moove, M-Kopa, PalmPay, and Kuda still possess the scale, market presence, and narratives needed to cross the unicorn threshold, provided they can demonstrate consistent profitability and possibly attract significant investor funds.