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January 7, 2026

Energy, fintech lead as African startups raised $3.2b in 2025

By Upfrontdigital News 0 9 Views

 

By Favour Unukaso

STARTUPS in Nigeria and other parts of Africa raised $3.2 billion funding in 2025 with energy, fintech players dictating the pace.

According to data from Africa: The Big Deal, the $3.2 billion showed a 40 per cent year-over-year increase and a decisive rebound from two consecutive years of contraction.

The growth showed a departure from the declines of 35 per cent in 2023 and 25 per cent in 2024, pushing total fundraising above levels seen in either of those years and signaling a return of investor appetite for the continent’s tech sector.

Specifically, the report showed that in 2019, $1.4 billion was raised; $1.1 billion in 2020; $4.4 billion in 2021 and 2022, $4.6 billion.

At the heart of the recovery was a 73 per cent jump in deals exceeding $10 million: 69 startups closed such rounds in 2025, compared with only 40 in 2024. That figure represents the second-highest yearly total since tracking began in 2019, surpassed only by 2022’s peak of 97 during the global venture boom.

According to the report, eight companies announced raises of more than $100 million, up from five in 2024 and four in 2023, concentrating substantial capital in a handful of high-growth ventures.

Africa: The Big Deal observed that the energy sector got half of the huge deals, with off-grid solar and energy access providers d.light, Sun King and M-Kopa, alongside electric mobility company Spiro, attracting major backing amid rising demand for clean energy solutions across the continent.

Fintech also remained a powerhouse, with Wave, Egypt-based MNT-Halan and Nigeria’s Moniepoint securing nine-figure sums as digital financial services continued to penetrate underserved markets.

While the total number of ventures raising at least $100,000 held steady at about 500, roughly flat with 2024 and 2023, the distribution of capital shifted markedly toward bigger checks.

According to the report, $1 million-plus rounds rose 11 per cent to 215, underscoring a broader trend of investors favouring scaled, later-stage companies over early-stage bets in a still-cautious global environment.

Investor participation remained resilient, with at least 554 distinct backers involved in deals of $100,000 or more, a figure broadly in line with 2024 though below the 650-plus recorded in 2023.

The proportion of repeat players, those involved in multiple deals, ticked slightly higher, reflecting growing specialisation among active funds.

The report disclosed that Digital Africa stood out as the most prolific non-grant investor, participating in at least 23 announced transactions.

Africa: The Big Deal recalled that the 2025 performance added to a cumulative tally of nearly $20 billion raised by African startups since 2019, excluding exits.

“More than 2,200 ventures have secured at least $100,000 over that period, including over 1,000 with $1 million-plus rounds, nearly 300 above $10 million and 33 topping $100 million. MNT-Halan leads the all-time rankings with more than $1 billion in total funding,” it stated.

Analysts believed that the concentration in mega-rounds points to a maturing ecosystem where investors are prioritising companies with proven unit economics and clear paths to profitability, particularly in sectors like energy and fintech that address structural challenges such as financial inclusion and electrification.

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