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African Startups have Raised $1.4bn in the First Half of 2025
African startups have raised $1.4bn in the first half of 2025, marking a strong start to the year for venture funding on the continent. This figure, reported by the African venture funding analytics company Africa the Big Deal, shows a significant increase compared to the $800 million raised in the first half of 2024, representing a 78% rise. However, the $1.4 billion raised in H1 2025 is roughly on par with the $1.4 billion raised in the second half of 2024, indicating a steady flow of investment.
Although this $1.4 billion is impressive, it is still the second-lowest first half funding total since 2022 and the third slowest half out of the last seven periods. Nonetheless, the African startup ecosystem is generally seen as undergoing a phase of alignment and adjustment, making these numbers a positive sign of recovery and growth.
Breaking down the $1.4 billion raised, most of the funding came in the form of equity, which accounted for $950 million or 68% of the total. Debt financing contributed $400 million, about 28.5%, while grants made up the remaining $50 million, or 3.5%. This shows a healthy mix of funding types, with equity still dominating but debt playing a significant role.
June 2025 was a standout month, with African startups raising $365 million, the strongest monthly total so far this year and the best in nearly a year. April was another strong month, with $343 million raised. Other months mostly crossed the $250 million mark, except for February ($119 million) and March ($50 million). The average monthly funding for the first half of 2025 stands at $237 million, well above the $187 million average for the entire year of 2024 and the $133 million average for the first half of 2024.
One of the biggest contributors to June’s funding was Wave, a Senegalese fintech company that raised $137 million in debt financing led by Rand Merchant Bank (RMB). This funding round was supported by global development finance institutions such as British International Investment (BII), Finnfund, and Norfund. Wave plans to use this capital to expand affordable and accessible financial services across Africa. The $137 million debt funding by Wave helped push the total debt financing for June to $227 million, making it the highest debt-funded month in over two years.
Other notable deals in the first half of 2025 include South Africa’s hearX, a healthtech startup that secured $100 million through a merger with U.S.-based Eargo to innovate hearing care. Egypt’s property technology company Nawy raised $75 million in May, marking the largest proptech deal on the continent. Nigerian cross-border payment startup LemFi raised $53 million in January to expand remittance services into Europe and Asia. Kenya’s PowerGen also secured $50 million in January to develop renewable power projects across Nigeria, Sierra Leone, and the Democratic Republic of Congo.
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The $1.4 billion raised by African startups in the first half of 2025 highlights the continent’s growing appeal for investors despite some challenges in the global venture capital environment. While the total funding is still recovering from previous years’ highs, the mix of equity and debt financing and the strong monthly performances indicate a maturing startup ecosystem ready for further growth.
African startups have raised $1.4bn in the first half of 2025, reflecting a 78% increase over the same period last year and maintaining momentum from the second half of 2024. The funding is well distributed between equity and debt, with major deals in fintech, healthtech, proptech, and renewable energy driving the growth. This positive trend suggests that 2025 could be a successful year for startup funding in Africa.
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