African startups raised an impressive $289 million in January 2025, representing a 240% spike compared to the $85 million raised in January 2024. This makes it the second-best January for startup funding since before the pandemic, underscoring a renewed wave of investor confidence in Africa's tech ecosystem.
The funding boom was driven mainly by equity financing, which accounted for over 90% of the total investments. The four largest deals came from Africa's Big Four startup hubs—Nigeria, Kenya, Egypt, and South Africa—which collectively captured nearly 60% of the total funding raised. Key deals included:
- PowerGen securing $50 million to scale distributed renewable energy solutions.
- LemFi raising $53 million to expand its fintech operations into Asia and Europe.
- Naked completing a $38 million Series B round to broaden its product offerings.
- Enko Education acquiring $24 million to enhance its school network.
This robust start to 2025 highlights a revitalized and increasingly diversified startup landscape, setting an optimistic outlook for the year ahead following a funding slowdown in 2024 compared to 2023.
