African startup funding drops sharply to $50 million in March 2025—Report  

This marks one of the lowest monthly totals since late 2020, according to a report by Africa: The Big Deal.

The slowdown follows a strong start to the year, with January recording almost $300 million in funding and February securing $119 million.

The poor March performance dragged the first−quarter total to $460 million, a 5% drop from the $486 million raised in Q1 2024.

Kenya, Nigeria, and South Africa remained the top investment destinations, each attracting roughly $100 million, representing 24%, 24% and 22% of the total respectively, followed by Egypt ($61 million, 14%).

The report shows that female-led startups received just 2%, that is, $10 million of the total Q1 funding, heavily influenced by a $6.2 million grant to South African biotech firm Biologics.

“Q1 wasn’t the best quarter overall, but it’s not all doom and gloom if we zoom back and look at longer-term trends”, the report noted.

The sluggish Q1 raises concerns about whether African startups can regain momentum after a tough 2024.

While fintech remains the dominant sector, the lack of large deals like the big tickets secured by the likes of Moniepoint and Tyme last year heightens the concern for 2025.