Africa’s startup funding momentum eased in December 2025, but capital concentration deepened, as the top 10 startups raised a combined $321.5 million, accounting for over 92% of the $349.1 million raised by 75 startups during the month.
By comparison, the remaining 65 startups shared just $27.6 million, highlighting the growing gap between capital-heavy late-stage transactions and a widening pool of smaller early-stage raises across the continent.
The December outcome marks a sharp pullback from November 2025, when African startups raised $589.9 million across 38 deals, with the top 10 alone contributing $573 million.
While deal activity nearly doubled in December, total funding fell significantly, pointing to smaller cheque sizes and heightened investor caution.
Unlike November’s IPO-driven surge, December reflected a softer market environment. Funding declined 40.8% month-on-month, even as deal volume rose.
The increase in activity did little to change the structure of funding, as capital remained heavily skewed toward a handful of large raises, reinforcing the persistent imbalance that continues to define Africa’s startup financing landscape.
Fintech startup Kalispot, backed by 500 Global, rounded off the top 10 list with a $4 million raise, combining debt and equity to accelerate the rollout of its agnostic 1Net financial ATMs across multiple African markets.
The funding will support interoperable infrastructure that connects banks, mobile money operators, and fintechs, helping to improve cash-in and cash-out services in underserved communities.
Algerian travel-tech startup Völz raised 600 million dinars ($4.5 million) in a locally led funding round, one of the largest disclosed startup raises denominated in local currency in Algeria.
The deal also marks the first successful exit for the Algerian Startup Fund (ASF), the state-backed vehicle created to catalyse the country’s venture capital ecosystem.
South African fintech Jumo secured $7.5 million in debt financing from BlueOrchard, reflecting sustained demand for alternative credit infrastructure across emerging markets.
The funding supports Jumo’s asset-backed securitization (ABS) structure in Uganda, the first of its kind for e-money microfinance in Africa, aimed at expanding access to finance for underserved individuals and entrepreneurs.
Egyptian agrifood platform Breadfast raised $13 million to support logistics expansion, operational efficiency, and upgrades to its technology stack.
The funding will enable the company to expand into secondary cities across Egypt while deepening investment in proprietary systems that support fulfilment and delivery operations.
Revibe, a marketplace for refurbished electronics with major operations in Egypt, raised $17 million in Series A funding led by Partech.
The capital will be deployed to strengthen quality control, expand across the GCC, and enter new emerging markets, as investor interest in circular-economy models continues to gain momentum.
The capital will be deployed to strengthen quality control, expand across the GCC, and enter new emerging markets, as investor interest in circular-economy models continues to gain momentum.
Egyptian fintech ValU raised $23 million through a bond issuance, underscoring the growing role of capital markets in financing mature African startups.
The transaction marks ValU’s 20th securitised bond issuance, completed under a new EGP 10 billion programme arranged by EFG Hermes, as the company continues to fund growth through structured debt instruments.
Healthcare startup Nawah Scientific raised $23 million in a Series A round comprising both equity and debt, coinciding with its tenth year of operations.
The funding will support the development of a global R&D centre in Rwanda, expand laboratory capacity in Egypt and Saudi Arabia, and accelerate expansion across North Africa and Europe.
South Africa recorded one of its largest December transactions as Capitec Bank acquired fintech platform Walletdoc for $23.5 million.
The acquisition aligns with Capitec’s strategy to lower payment costs, broaden digital financial access, and deepen financial inclusion across its customer base.
Kenya’s Sun King secured $40 million in equity funding from sustainable investment platform Lightrock to scale decentralized energy solutions across Africa and Asia.
The company plans to expand solar deployments while investing in new product innovation to meet rising demand for off-grid energy.
Kenya topped the funding charts as M-Kopa raised $166 million in a Series F round, accounting for more than half of all capital raised in December.
The pay-as-you-go fintech and asset-financing platform continues to expand access to smartphones, solar energy, and digital financial services for underserved households, cementing its position as one of Africa’s most influential consumer-finance platforms.
Eastern Africa emerged as the most funded region in December, raising $208.1 million, equivalent to 64.73% of total funding, driven largely by M-Kopa and Sun King.
Other regions followed at a distance:
The data reflects a temporary shift away from Southern Africa’s dominance in November, when IPOs drove record inflows.
At the country level, funding concentration was equally pronounced, as Kenya regains top spot with $206.7 million, reflecting a 64.29%
Kenya’s dominance was driven almost entirely by M-Kopa’s mega Series F round, while Egypt stood out for deal volume and sectoral breadth, spanning fintech, healthcare, agrifood, and waste management.
December cools after November surge, reflecting:
In November, the top 10 startups accounted for 97% of total funding, compared to just over 92% in December, signalling a modest broadening of capital distribution despite the absence of mega IPOs.
December 2025 reflects a cool-off rather than a reversal in Africa’s startup funding trajectory. While headline funding volumes declined sharply from November’s IPO-led highs, investor interest remained firm in fintech, energy access, healthcare, and infrastructure-led platforms.
The data suggests investors are still willing to back large, proven African startups, even as smaller transactions regain momentum toward year-end—setting the stage for a more balanced funding environment heading into 2026.