• African startups raised $1.055B from Jan–May 2025, up 40% year-on-year
• Egypt, South Africa, Nigeria, and Kenya attracted 84% of all funding
• Egypt also led tech M&A, with 3 of 4 deals recorded continentwide

African startups raised $1.055 billion during the first five months of 2025, a 40% increase compared to the same period in 2024, according to data published on June 10 by Africa: The Big Deal, a platform that tracks transactions above $100,000 excluding exits.

The continent's four leading tech ecosystems, Egypt, South Africa, Nigeria, and Kenya, continued to dominate funding. Egypt led with over $330 million, representing 31% of total funds raised. South Africa followed with 26%, Nigeria with 15%, and Kenya with 12%. Together, these “Big Four” markets accounted for 84% of all investments made across Africa.

In May 2025 alone, African startups raised $254 million, down from $343 million in April. A total of 36 startups secured funding during the month. Egyptian startups led the way, with proptech firm Nawy raising $75 million through a combination of series A funding and debt. Fintechs MNT-Halan and Valu followed, raising $50 million and $27 million, respectively.

Egypt also dominated the continent’s tech M&A landscape in May, recording three of the four transactions. These included the acquisition of B2B marketplace Fatura by e-commerce platform MaxAB-Wasoko, the merger between healthtech startups Miran and Welnes, and the acquisition of loan platform Qardy by Catalyst Partners Middle East.

The fourth M&A deal involved West Africa, where BioLite, a key player in off-grid clean energy, acquired a majority stake in Baobab+, a provider of solar energy solutions.