Kenya emerged as Africa’s most funded startup ecosystem in 2025, reinforcing its position at the centre of the continent’s innovation economy. In a year when African startups raised over $3 billion, Kenya alone accounted for nearly a third of all capital deployed, outpacing traditional heavyweights and reshaping investor perceptions of where scale and resilience now sit on the continent.
While Africa’s “Big Four” startup markets – Kenya, South Africa, Egypt and Nigeria – have dominated venture funding since 2019, the balance of power within this group is shifting. Kenya’s standout performance in 2025 highlights not only the country’s growing maturity as a venture destination, but also broader changes in how and where investors are deploying capital across Africa.
This article examines how Kenya came to dominate startup funding in 2025, how the other Big Four markets performed, and which emerging ecosystems are beginning to attract meaningful investor attention.
Africa’s Startup Funding Landscape in 2025
Since 2019, the Big Four markets have consistently captured more than 80% of all startup funding raised on the continent. In 2025, that figure remained largely unchanged, with these four countries together accounting for just over four-fifths of total capital deployed across Africa.
This dominance is particularly pronounced at the top end of the market. In 2025, 81% of startups raising $10 million or more were headquartered in the Big Four. However, that concentration declines steadily as deal sizes shrink:
69% of startups raising between $1 million and $10 million were based in the Big Four
56% of those raising between $100,000 and $1 million were headquartered there
For investors and founders, these figures can create the impression that startup activity is almost exclusively confined to these four markets. In reality, while the Big Four continue to anchor Africa’s venture ecosystem, momentum is clearly building elsewhere – particularly in East and Francophone West Africa – as confidence spreads and capital begins to diversify.
Kenya’s rise to the top of Africa’s startup funding tables in 2025 is the result of long-term ecosystem building rather than a single breakout year.
Home to more than 400 startups – the largest concentration in East Africa – Kenya ranks first in the region and 58th globally for startup activity. This is a notable achievement for a country with a significantly smaller population and GDP than Nigeria or Egypt, and speaks to the strength of its innovation culture, regulatory environment and talent base.
Kenya’s reputation as a fintech pioneer, cemented by the global success of M-Pesa, continues to shape its startup landscape. Mobile money laid the foundation for widespread financial inclusion, enabling subsequent waves of innovation in lending, payments, insurance and cross-border finance. In parallel, Kenya has developed strong capabilities in clean energy, mobility, agritech and healthtech – sectors that increasingly align with global impact-focused capital.
Policy has also played a meaningful role. The Kenya Startup Bill, aimed at improving access to capital, simplifying regulatory processes and strengthening public-private collaboration, has sent a clear signal to investors that the country is serious about supporting entrepreneurship at scale.
Kenya Startup Funding Figures and Key Deals in 2025
According to data fromAfrica: The Big Deal, Kenyan startups raised a total of $984 million in 2025 – the largest amount raised by a single African market since 2022. This figure represents approximately 32% of all startup funding deployed on the continent during the year.
Funding in Kenya grew by an impressive 52% year-on-year (YoY), underlining the country’s resilience at a time when global venture markets remain cautious.
Debt played a significant role in this performance. Of the total raised:
$582 million (60%) came in the form of debt, up 33% YoY
$383 million was raised as equity, almost double the amount raised in 2024
This skew towards debt reflects both the maturity of Kenya’s later-stage companies and the strength of its energy and infrastructure-adjacent sectors, where project finance and structured facilities are more common.
Key Deals that Defined Kenya’s 2025
Several large transactions helped propel Kenya to the top of the funding tables:
PowerGen (Energy) — $50m+ to expand distributed renewable energy across Africa
Hakki Africa (Fintech/Mobility) — $13m
Burn (Clean-tech) - Raised $80 million from TDB Group
Peach Cars (Digital marketplace) – Raised $9.4 million in a Series A round
Kenya Sumac Microfinance Bank – Moniepoint acquired a 78% stake
AZA Finance (Fintech) – Was acquired by Uruguayan fintech unicorn dLocal in a $150 million deal
d.light (clean energy) – Raised a financing round of $300 million
Sun King (clean energy) – Secured a $165 million debt facility
Hewatele (Health-tech) – Secured a $10.5 million raise
Spiro (Mobility and EV) – Raised $100 million
Mawingu (ISP) – Raised $20 million in funding from PRIF II
Together, these deals illustrate both the scale and sectoral diversity of Kenya’s startup ecosystem in 2025.
Egypt Ranks Second as Africa’s Fintech Funding Powerhouse
Egypt retained its position as Africa’s second-largest startup funding market in 2025, raising $614 million and accounting for roughly 20% of all capital deployed on the continent.
The country’s funding grew by 51% YoY, closely mirroring Kenya’s growth rate. At least half of the capital raised came in the form of equity, with the remainder split across debt instruments – particularly bonds and sukuk – reflecting Egypt’s deepening financial markets.
Egypt was also the continent’s second-largest market for debt funding, raising $278 million, or about 24% of Africa’s total debt capital in 2025. A total of 61 startups raised $100,000 or more, placing Egypt fourth globally on the continent by deal count in that bracket.
Major Startup Funding Deals in Egypt (2025)
Egypt’s fintech dominance remained evident, with several high-profile transactions:
Khazna (Fintech) — $16m for expansion into Saudi Arabia
Taager (Logistics/Transport) — $7m pre-Series B
Bokra (Fintech/Islamic Finance) - $59m via Sukuk issuance
ADVA (Fintech) – Acquired by Maseera (UAE)
Tasaheel/ MNT-Halan – $50m corporate bond, the largest in the country’s history
valU (fintech) – Secured a $9 million bond issuance, and later another $23 million bond issuance
Breadfast (Retail-tech) – Secured $10 million in a Series B2 round
Intella (AI) – Closed a $12.5 Series A round
Tagaddod (Clean-tech) – Raised over $20 million in a Series A round
MNT-Halan (fintech) – Secured a $71 million bond issuance
Egypt’s performance underscores the continued strength of North Africa as a hub for fintech, capital markets innovation and large-scale financial infrastructure plays.
South Africa Leads Africa in Equity Startup Investment
South Africa ranked third in 2025, with startups raising approximately $600 million, representing 19% of total funding across Africa. While its overall growth rate (around 20% ecosystem-wide) trails that of Kenya and Egypt, South Africa remains the continent’s most mature startup ecosystem.
Ranked 52nd globally, South Africa continues to benefit from deep capital markets, sophisticated institutional investors and strong corporate participation. Johannesburg emerged as the fastest-rising startup city globally, climbing to 122nd place, while Cape Town maintained its reputation as a leading innovation hub.
Funding in South Africa grew by over 50% YoY in 2025, with more than 90% of capital raised as equity – accounting for 29% of all equity funding on the continent. The number of ventures raising at least $100,000 rose to 83, a 63% YoY increase, placing South Africa second only to Nigeria by deal count.
Notable South African Startup Funding Deals in 2025
Key transactions spanned a wide range of sectors:
Enko Education (Ed-tech) — $24m to grow its African school network
African Biologics (Biotech) - $6.2m in grant funding
hearX (Healthtech) - $100m acquisition by US-based company Eargo
Stitch (Fintech) - $55m from existing investors
Peach Payments (Fintech) – Acquired PayDunya to expand into Francophone West Africa
AURA (Security-tech) - $15m Series B led by Partech and CAIF
Safiyo (Data) - ACKWEST Group acquired a 100% of Safiyo
Lesaka Technologies (Fintech) – Acquired a 100% of Bank Zero
iKhokha (Fintech) – Was acquired by Nedbank for $93 million
Pura Beverages – Closed a $15 million Series B round
The Invigilator (Edtech) – Secured $11 million in funding
Ctrack (Telematic) – Raised $23.4 million in equity funding
SolarSaver (Energy) – Secured $60 million in a funding round
Omnisient (Fintech) – Secured $12.5 million in funding
Lula (Fintech) – Raised $10 million in funding
SwiftVEE (Agritech) – Secured $10 million in funding
Optasia (Fintech) – Listed on the Johannesburg Stock Exchange (JSE), raising $35 million in the process
South Africa’s strength lies less in headline growth rates and more in its ability to produce exits, late-stage rounds and institutional-scale equity transactions.
Nigeria experienced its most difficult year among the Big Four in 2025. Total startup funding fell to $343 million, reducing the country’s share of continental funding from 19% in 2024 to 11% in 2025.
Equity funding, which made up 83% of the total raised, declined by 22% YoY. Despite this contraction, Nigeria still led the continent in terms of deal volume, with 86 startups raising at least $100,000 – although this too represented a 14% YoY decline.
LemFi (Fintech) — $53m for expansion into Asia and Europe
Raenest (Fintech) - $11m Series A round
Tether (Fintech) - $3m seed + $7m debt
Bankly (Fintech) – Acquired by C-One Ventures
Moniepoint (fintech) – Acquired a 78% stake in Kenya’s Sumac Microfinance Bank
Koolboks (Clean-tech) – Raised $11 million in a Series a round
Chowdeck (Mobility) – Raised $9 million in a Series A round
Kredete (Fintech) – Announced a $22 million Series A raise
Moniepoint (Fintech) – Topped-up their last round with an extra $90 million
LagRide (Mobility) – Secured a $100 million UBA facility
GoLemon (Grocery delivery) – Secured a partnership with to supply Chowdeck’s dark stores
While Nigeria’s fundamentals remain strong, macroeconomic pressures and currency volatility continue to weigh on investor sentiment.
Startup Funding Growth Beyond Africa’s Big Four
Startup funding outside the Big Four remained resilient and increasingly significant in 2025. Senegal and Benin both surpassed $100 million in total funding, driven largely by large individual transactions.
Senegal benefited from Wave’s $137 million debt round.
Benin saw Spiro’s $100 million raise significantly boost totals.
Other notable markets included Morocco ($58 million), Ghana ($56 million), Tunisia ($37 million), Rwanda ($25 million) and Uganda ($22 million), signalling a gradual broadening of Africa’s venture map.
East Africa Becomes Africa’s Leading Startup Funding Region
By region, East Africa emerged as the top destination for startup funding in 2025, accounting for 34% of total capital raised. West Africa followed with 24%, Northern Africa with 23%, Southern Africa with 19%, and Central Africa with just 0.1%.
The regional split closely mirrors that of 2024, with the key difference being West Africa’s decline due to Nigeria’s underperformance.
What Africa’s Startup Funding Trends Mean for Investors
Africa’s startup performance in 2025 sends a clear message: capital is flowing towards ecosystems that combine scale, regulatory clarity and sectoral depth. Kenya’s rise is not accidental, but the result of sustained innovation, strong policy signals and alignment with global capital priorities.
While Nigeria faces a period of recalibration and South Africa continues to play to its strengths in equity and exits, the broader picture remains encouraging. African startups are proving they can build globally relevant businesses, deliver impact at scale and attract serious investor backing – even in a cautious global environment.
For investors and founders alike, the continent’s startup story is becoming more diverse, more competitive and more compelling than ever.
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
Lungile Msomi
