The African startup ecosystem experienced a substantial capital inflow in February 2025, raising $219 million across various sectors, led by fintech, renewable energy, and AI-driven solutions, according to data tracked by Launch Base Africa. Last month’s funding closely matches that raised by the continent’s startups in January, reflecting strong investor confidence in the continent’s expanding innovation landscape.

The largest deal of the month was SolarAfrica’s $98 million investment round, which accounted for 44.7% of total funding. The South Africa-based renewable energy company secured financing from Investec and RMB, emphasizing the growing importance of clean energy solutions in Africa. This aligns with the continent’s broader push towards sustainable infrastructure.

Beyond renewable energy, fintech remained a dominant sector, drawing $78 million (35.6% of total funding). Key transactions included Raenest ($11 million, Nigeria), Khazna ($16 million, Egypt), and Affinity Africa ($8 million, Ghana). The demand for digital banking, AI-driven lending, and financial inclusion solutions continues to drive strong investment interest.

Other significant rounds were raised in AI and SaaS ($26.2 million, 11.9%), with notable deals including Qme ($3 million, Egypt) and ToumAI ($1 million, Morocco). The continent also witnessed considerable investment into the mobility sector, led by Gozem’s $30 million investment in Francophone Africa.

The Distribution of Investors

1. Africa-Based Investors 

Total Contribution: ~48.8%
African investors played a significant role, primarily in South Africa, Nigeria, Cote d’Ivoire, and Morocco. The biggest contributor was South Africa, thanks to local financial institutions backing SolarAfrica.

Key African Investors:

South Africa

• Investec & RMB → $98M (SolarAfrica)
• Futuregrowth Asset Management → $3M (CubeSpace)
• Vumela Fund → Undisclosed (Everlectric)

Nigeria

• VFD Group → $3.3M (V Bank)
• Ventures Platform → Participated in Raenest ($11M)

Côte d’Ivoire

• CDC-CI Capital → $1.3M (Djamo, Côte d’Ivoire)
• Janngo Capital → Led ~$1M+ round in Tunisia’s Dabchy.

Morocco

• Al Mada Ventures → Co-led $30M (Gozem)

Trend:

• African investors mainly backed fintech, renewable energy, and deep-tech.
• South African investors provided the largest funding chunk, driven by SolarAfrica’s deal.

2. North America 

Total Contribution: ~20.6%

North American investors were active, particularly from the USA, which backed multiple fintech, mobility, and AI ventures.

Key North American Investors:

• QED Investors (USA) → Led $11M (Raenest, Nigeria)
• Visa (USA) → Backed Oze (Ghana, undisclosed)
• Flourish Ventures (USA) → $600K (Madica-backed startups in Tanzania, Egypt, Tunisia)
• Renew Capital (USA) → Participated in Dabchy $1M+ round
• Village Capital (USA) → Participated in Dabchy round
• 4DX Ventures (USA) → Backed Taager ($6.75M)
• Breyer Capital (USA) → Participated in Taager round
• P1 Ventures (Egypt, USA) → Participated in Raenest ($11M)

Trend:

• North American investors favored fintech and AI startups.
• Visa’s participation in Oze signals continued corporate VC interest in Africa’s fintech space.

3. Europe

Total Contribution: ~15.1%

European investors were particularly active in fintech, SaaS, and impact investing.

Key European Investors:

• British International Investment (BII, UK) → $4M (SunCulture, Kenya)
• Speedinvest (Austria) → Participated in Khazna ($16M)
• ICU Ventures (Ukraine) → Participated in Khazna ($16M)
• Grazia Equity (Germany) & BACKED VC (UK) → Led $8M (Affinity Africa, Ghana)
• Kili Ventures (Italy) → Led $1.5M (WafR, Morocco)
• Seedstars (Switzerland) → Participated in Raenest ($11M)

Trend:

• UK and Germany remained the most consistent European backers.
• European funds showed a strong focus on financial inclusion (Khazna, Affinity Africa, WafR).
• Impact investors like BII, and Speedinvest focused on sustainable fintech & agritech.

4. Middle East 

Total Contribution: ~9.7%

Middle Eastern investors focused on fintech, SaaS, and social commerce.

Key Middle Eastern Investors:

• Aljazira Capital & anb Seed Fund (Saudi Arabia) → Backed Khazna ($16M)
• RAED Ventures (Saudi Arabia) → Backed Taager ($6.75M)
• AHOY (UAE) → Led $3M (Qme, Egypt)
• BECO Capital (UAE) → Participated in Taager ($6.75M)

Trend:

• Saudi Arabia & UAE focused on fintech & e-commerce.
• Gulf investors favored scalable digital platforms over impact-driven startups.

5. Asia

Total Contribution: ~10.4%

Asia had fewer investors but notable, high-ticket contributions.

Key Asian Investors:

• Global Brain’s Flagship Fund IX (Japan) & Norinchukin Innovation Fund L.P. (Japan) → $12.7M (Hakki Africa, Kenya)
• Tether (Hong Kong) → Led $10M (Mansa, Africa-wide)

Trend:

• Japanese investors favored mobility & financial services (Hakki Africa).
• Tether’s $10M investment in Mansa indicates crypto-based funding interest.

6. Other Regions

Total Contribution: ~14.4%

• SAS Shipping Agencies Services (Turkey) & Al Mada Ventures (Morocco) → Led $30M (Gozem, Francophone Africa)
• GO Ventures (Malta) → Participated in ToumAI ($1M)
• Polymorphic Capital (Cyprus) → Backed Mansa ($10M)

Trend:

• Turkey and Morocco’s VC firms are gaining momentum, particularly in Francophone Africa.
• European offshore funds (Cyprus, Malta) are selectively investing in crypto, AI, and fintech.

Table 1: Startups, Countries, Amount Raised, and Investors

Note: We excluded certain deals from our African Startup Deal Tracker, including the $17.9M Series A round in Africa-focused Capi Money. If you believe a funding round was missed or included incorrectly, please reach out to us at support@launchbaseafrica.com.