Startups across Africa raised $3.2 billion in funding in 2025, marking a strong rebound after two years of decline, with energy and fintech companies leading the recovery. According to data from Africa: The Big Deal, the total represents a 40 per cent year-on-year increase, reversing contractions of 35 per cent in 2023 and 25 per cent in 2024 and signalling renewed investor confidence in the continent’s tech ecosystem.
The rebound was driven largely by a sharp rise in large funding rounds. Deals exceeding $10 million jumped 73 per cent, with 69 startups closing such rounds in 2025, compared with 40 in 2024. This was the second-highest annual total since tracking began in 2019, behind only the 2022 peak during the global venture capital boom. Eight companies raised more than $100 million, up from five in 2024, concentrating capital among a smaller group of high-growth ventures.
Energy startups accounted for around half of the largest deals, with off-grid solar and energy access providers such as d.light, Sun King and M-Kopa attracting significant investment, alongside electric mobility company Spiro. Rising demand for clean energy and electrification across the continent has positioned the sector as a key focus for investors.
Fintech remained another major driver of funding, with companies such as Wave, Egypt-based MNT-Halan and Nigeria’s Moniepoint securing nine-figure investments as digital financial services continued to expand into underserved markets. While the overall number of startups raising at least $100,000 remained steady at around 500, capital increasingly flowed toward larger, later-stage rounds.
According to the report, $1 million-plus rounds rose 11 per cent to 215, reflecting investor preference for scaled businesses with clearer paths to profitability amid a cautious global funding environment. Investor participation remained resilient, with at least 554 distinct backers involved in deals of $100,000 or more, while repeat investor activity increased slightly, pointing to greater specialisation among active funds.
The 2025 performance brings total startup funding in Africa since 2019 to nearly $20 billion, excluding exits. Analysts say the growing concentration of capital in energy and fintech reflects a maturing ecosystem, with investors prioritising companies addressing structural challenges such as financial inclusion and access to reliable electricity.
