The African startup ecosystem crossed a significant funding milestone in May 2025, with total capital raised year-to-date surpassing the $1bn mark. The month alone saw approximately $235.61m in disclosed deals — across equity, debt, and loan instruments — reinforcing investor confidence in the continent’s tech and innovation sectors.
This brings the cumulative funding amount raised by tech firms in the African startup ecosystem in 2025 to a conservative estimate of $1.103bn, according to data tracked by Launch Base Africa. The true figure is likely higher, given the absence of disclosed amounts in reported deals and multiple others only described as “six-figure” or “seven-figure” rounds.
Fintech Still Dominates — But Cleantech and Healthtech Are Catching Up
Fintech maintained its lead in deal count and capital raised, with at least eight transactions in May spanning lending platforms, investment apps, and financial super apps. Egypt-based MNT-Halan raised the largest single deal of the month — a $49.4m bond issue — followed by Thndr ($15.7m), MoneyFellows ($13m), and Nigeria’s Carrot Credit ($4.2m).
However, cleantech and healthtech are rapidly gaining ground. In cleantech, startups tackling electric mobility, solar energy, and clean cooking attracted substantial backing. Kenyan startups ARC Ride and BURN Manufacturing raised $5m each, while Nigeria’s Husk Power secured another $5m for its solar hybrid mini-grid systems.
Healthtech remained a consistent area of interest, reflecting global trends toward digital health infrastructure and pharmaceutical logistics. Kenya’s MyDawa raised $9.6m, while Japan-backed SORA Technology secured $4.8m, and Egypt’s iSupply landed a $3m round with participation from Bokra.
Other active sectors included:
- E-commerce and Marketplaces (e.g., Sylndr’s $25.7m used-car platform)
- Proptech (e.g., Egypt’s Nawy with a $75m round combining equity and debt)
- Agritech (FreshSource, Mariseth Farms)
- Public Safety & Emergency Services (e.g., AURA in South Africa raising $15m)
Egypt Leads Geographically as Nigeria, Kenya, and South Africa Follow
Egypt was the standout geography, recording at least 11 deals and absorbing the bulk of May’s capital. Nawy’s $75m and MNT-Halan’s $49.4m were the two largest rounds continent-wide, further supported by Sylndr, Thndr, and MoneyFellows — all pointing to a well-developed fintech and proptech investment environment.
Nigeria followed closely in deal volume, with activity spread across fintech, healthtech, cleantech, and construction tech. Notable rounds included Carrot Credit ($4.2m), Cutstruct ($1.5m), and Salpha Energy ($1.2m).
Kenya recorded fewer deals but attracted meaningful capital in cleantech and healthtech. BURN Manufacturing and ARC Ride each raised $5m, and MyDawa brought in $9.6m — with several of these supported by development finance institutions (DFIs).
South Africa saw activity in insurtech, medtech, and public safety. AURA’s $15m round led the country’s haul, alongside smaller raises such as Community Wolf ($460k), highlighting a diverse ecosystem with local investor depth.
Other countries — including Tunisia, Ghana, Uganda, Ethiopia, and Algeria — also featured in the deal flow, though often with undisclosed amounts.
Investor Mix: Local Players More Prominent as DFIs and Global Funds Continue to Back the Ecosystem
The 2025 startup funding landscape continues to be defined by a blend of African VCs, global venture capital firms, and DFIs.
Local participation was strong, with funds like Lorax Capital Partners (Egypt), Algebra Ventures, and E3 Capital (Kenya) taking part in several deals. Nigeria’s Resilience17 and South Africa’s 27four Investment Managers also made visible commitments. About 36.2% of the investors are Africa-based.
International backers remained active, particularly from the US, Europe, and increasingly Asia and the Middle East.
- US-based funds such as CRE Venture Capital, Y Combinator and MaC Venture Capital continued their regular activity. North American investors accounted for approximately 17.4% of the total investor pool.
- European investors like Proparco (France), BII (UK), and the Netherlands’ Goodwell Investments were prominent, especially in impact and cleantech deals. European investors made up approximately 29% of the total.
- Japan’s re-emergence was notable, with investors like Nissay Capital, DRONE FUND, and Ohara Pharmaceutical backing healthtech and medtech startups.
- Middle Eastern funds, including Shorooq Partners and Nuwa Capital, participated in early- and growth-stage rounds. Investors from this region represented about 8.7% of the total.
DFIs remained critical players, particularly in capital-intensive sectors like cleantech, where the IFC and Proparco are deploying concessional and blended capital to de-risk early-stage investments.
Key Trends and Takeaways
- Use of debt is rising: Debt instruments made up a meaningful share of the funding volume in May, used by startups like MNT-Halan, Nawy, and BURN Manufacturing. This reflects the increasing financial maturity of Africa’s top startups.
- Funding diversity: The month featured a wide mix of pre-seed equity, venture debt, corporate bonds, and even revenue-sharing arrangements. The array of funding structures suggests a growing sophistication among both founders and investors.
- Early-stage still active: Despite the headlines dominated by large rounds, smaller deals such as Platos Health, THE WHITEGUARD, and Cutstruct indicate continued interest in early-stage innovation.
- Pan-African ambitions: Startups such as SORA Technology, Mercurie, and Inclusivity Solutions are pursuing continental growth strategies, often supported by investors with a Pan-African footprint.
- Specialized sub-ecosystems: Egypt is emerging as a fintech and proptech hub, South Africa is leading in emergency and public safety innovation, and Kenya continues to be a hotspot for cleantech innovation.
The Bottom Line
With nearly half the year still ahead, Africa’s startup ecosystem appears on track to exceed 2024’s funding total, especially if current momentum continues. The prominence of debt, growing diversity in capital instruments, and broader geographical dispersion of funding suggest a maturing landscape.
While global macroeconomic challenges persist, investors appear increasingly confident in Africa’s long-term innovation potential — not just in traditional fintech but also in frontier sectors such as cleantech, agritech, and medtech.
Download the May funding activity report HERE.