African startups kicked off 2025 with a remarkable fundraising performance, securing a total of $289 million in January through several deals worth $100,000 and above.
This figure represents a staggering 240% increase compared to the $85 million raised in January 2024, making it the second-best January for startup funding since at least 2019, trailing only behind January 2022 during the peak of the funding boom.
The latest data from Africa: The Big Deal reveals that equity financing dominated the fundraising landscape, accounting for over 90% of the total amount raised ($262 million).
This is a significant jump from January 2024 and also marks the second-highest January for equity fundraising in the past six years.
The four largest deals in January 2025 alone accounted for nearly 60% of the total funding raised across the continent.
Notably, all four deals originated from one of Africa’s “Big Four” startup ecosystems—Nigeria, Kenya, Egypt, and South Africa.
However, three of these deals highlighted a growing trend of African startups expanding their operations beyond the continent.
The top deals of the month include:
The strong fundraising performance in January 2025 signals a renewed confidence in Africa’s startup ecosystem, which faced significant funding challenges in 2023 and 2024.
While the amount raised in 2024 was quite significant, it represents a 25% drop in funding compared to the $2.9 billion raised on the continent in 2023.