• African startup M&A hits record 67 deals in 2025
• Consolidation driven by funding pressures and expansion strategies
• Fintech leads deals as “Big Four” dominate activity

Mergers and acquisitions among African startups reached a record 67 deals in 2025, a 72% increase from 2024, according to TechCabal Insights’ “The State of Tech in Africa 2025” report, published on Friday, Jan. 23, 2026. The report says the total far exceeded the previous record of 40 deals set in 2022, signalling a shift in the African tech ecosystem from fragmentation toward strategic consolidation.

As investors concentrate on a smaller number of more established startups, younger companies struggling to raise funds are increasingly seeking to be acquired or to merge with better-capitalized firms. Established players, meanwhile, are using acquisitions aggressively to enter new markets, secure licences, or consolidate market share.

Kenyan foodtech Twiga Foods acquired three distributors, Raisons, Sojpar, and Jumra, to strengthen its supply chain. Nigerian fintech Moniepoint expanded its regional footprint by acquiring Kenya’s Sumac Microfinance Bank and the UK-based electronic money institution Bancom Europe. Another Nigerian firm, Rank, formerly known as Moni, acquired local platforms AjoMoney, which provides collective savings, credit, and investment services, and Zazzau Microfinance Bank. A South African payment infrastructure specialist also acquired competitors ExiPay and Efficacy Payments.

By sector, financial technology led with 31 deals over the past year. E-commerce followed with eight deals, while healthcare recorded six, transport and logistics six, and telecoms, media, and entertainment six. Deeptech saw four deals and climate tech three.

The breakdown by country shows that Africa’s four main tech ecosystems accounted for nearly 75% of all deals. South Africa recorded 16 mergers and acquisitions, Kenya had 14, Egypt had 11, and Nigeria had nine. Despite this high sectoral and geographic concentration, this wave of consolidation is reshaping the continent’s tech landscape, alongside more than 70 strategic partnerships and 54 geographic expansion operations involving entry into one or more new markets on or off the continent. This highlights how African startups are seeking growth through ownership links, collaborations, and access to new markets.

The shift toward greater maturity has, however, come at a high cost. Since 2020, approximately 8,589 layoffs have been recorded across the continent, including 2,421 in 2025 alone, or 28% of the total, as companies streamlined operations to improve operational efficiency. In addition, the end of the “growth at all costs” era resulted in the closure of 46 startups between 2022 and 2025, including 18 during the past year alone.

The report also says African startups raised $3.42 billion across 502 transactions with disclosed amounts in 2025, compared with $2.24 billion in 2024. Funding was split between equity financing of $2.297 billion, debt of $1.083 billion, and grants of $40 million. Fintechs captured approximately 40% of the total, raising $1.37 billion. They were followed by companies in energy and water at $857 million, logistics and transport at $398 million, healthcare at $185 million, services at $115 million, agriculture and food at $89 million, education and employment at $87 million, deeptech at $73 million, and retail at $71 million.

By country, the “Big Four” accounted for approximately 80% of the total amount raised on the continent. South Africa raised $933 million, Kenya $811 million, Egypt $548 million, and Nigeria $438 million.

Walid Kéfi