Startup funding across Africa saw a notable slowdown in August 2025, with 33 African startups raising $93 million through $100K+ deals, excluding exits. While this marks a quieter month compared to recent trends, the total raised still exceeds the amount recorded in August 2024, indicating a resilient investment landscape.
The bulk of the capital raised came in the form of equity investments, while the remainder consisted of debt financing. Among the month’s largest transactions was a $9 million securitised bond issuance by Egyptian consumer finance platform valU, highlighting a trend of alternative funding structures becoming more common across the continent.
Consistent Year-on-Year Participation
Despite the dip in momentum, the number of funded startups remained consistent with previous years. Both August 2024 and August 2024 saw a similar number of startups - 33 - securing investment during the same period, suggesting that while deal sizes may fluctuate, investor appetite for early-stage African ventures remains relatively stable.
August’s funding was spread across various sectors and regions, with a handful of significant deals accounting for the majority of the capital inflow. The most notable transactions this month include:
$9 million securitised bond issuance by valU (Egypt)
Koolboks’ $11 million Series A raise (Nigeria)
$10.5 million raised by Hewatele (Kenya)
Breadfast’s $10.2 million Series B2 (Egypt)
Chowdeck’s $9 million Series A raise (Nigeria)
Ampersand’s $7 million raise (Rwanda)
Nedbank’s $93 million acquisition of iKhokha (South Africa)
While the Nedbank-iKhokha acquisition stands out due to its size, it was not included in the primary funding tally, which focused solely on funding rounds of $100,000 or more and excluded exit transactions.
Sector and Regional Highlights
In terms of sector allocation, funding was relatively balanced in August. No single sector dominated overwhelmingly; instead, five sectors each secured at least 10% of total disclosed funding. This distribution was largely driven by the major rounds mentioned above, which spanned fintech, edtech, healthtech, logistics, and clean energy.
Regionally, the top-performing ecosystems in August were Egypt, Nigeria, and Kenya, together accounting for approximately 75% of all capital raised. Egypt, in particular, continued to punch above its weight, led by sizable rounds from valU and Breadfast. Nigeria followed closely, bolstered by Koolbooks and Chowdeck, while Kenya’s performance was underpinned by Hewatele’s health-focused raise.
Interpreting the Slowdown
The month-on-month decline is finding volume aligns with seasonal patterns often seen in venture activity with markets slowing and investors away. However, Africa’s August numbers still compare favourably to last year, indicating a degree of robustness despite global economic headwinds and tighter capital markets.
With only four months remaining in the year, investors and founders alike will be watching closely to see if Q4 brings a rebound in deal volume and size. Historically, the final quarter often sees a spike in announcements, particularly around accelerators, Series A raises, and government-backed innovation funds.
Overall, while August did not deliver headline-grabbing megadeals, it reaffirmed continued interest in African startups, particularly in markets with strong regulatory support and scalable business models.
Lungile is the Digital Editor for Startup.Africa, with a knack for storytelling, technology and innovative ideas. Working with Startup.Africa, she takes simple ideas and turns them into amazing stories.
Lungile Msomi
