African Startups Secure $119M in February 2025, Bringing Year-to-Date Funding to $408M

According to a report by Africa: The Big Deal, in February 2025, African startups collectively raised $119 million in disclosed funding, reflecting a decline compared to previous years.

The number of $100k+ deals announced (38), was lower than the average of the past 12 months and previous February’s since 2021. Similarly, the total amount raised in February fell below the average of the last year and previous February’s since 2019.

However, a broader perspective highlights a more positive trend. Year-to-date funding in 2025 has reached $408 million, surpassing the $302 million recorded during the same period in 2024 and slightly exceeding the $400 million raised in 2021.

While the total number of $100k+ deals announced this year lags behind previous years, the number of $1M+ deals, 42 in total, aligns closely with 2023 (42) and 2024 (43) and remains significantly higher than the pre-heatwave levels recorded between 2019 and 2021 (20-31 deals).

The fintech and logistics sectors dominated February’s funding landscape, accounting for the seven largest deals, which collectively represented 80% of the total amount raised. This trend is consistent with 2024 funding patterns. The majority of these major deals took place in Africa’s “Big Four” markets which include Nigeria, Egypt, South Africa, and Kenya.

The largest funding round in February came from Gozem, a Togo-based ride-hailing startup, which secured $30 million through a combination of $15 million in equity and $15 million in debt financing. The company disclosed plans to use the funds to bolster its vehicle financing service and foray into new markets.

Other notable transactions included Egypt’s fintech startup Khazna raising $16 million. The company announced that the investment will support its expansion plans as it prepares to apply for a digital banking license in Egypt and expand into Saudi Arabia.

Also, Hakki Africa, a mobility fintech providing microfinance solutions for taxi drivers in Kenya, secured approximately $13 million in a fintech-mobility deal. The investment follows a Series B funding round in 2023, during which Hakki secured 1.58 billion yen (approximately $10.6 million). The company’s financing model seeks to address a longstanding challenge faced by taxi drivers in Africa?, which is access to affordable vehicle ownership.

Nigeria’s Raenest closed $11 Million Series A Funding Round Led by QED Investors. The funding round aims to expand Raenest’s operations in both local and international markets.

Additionally, Nigerian fintech firm Tether raised $3 million in a seed round alongside $7 million in debt financing, while Ghana’s Affinity secured $8 million. Egypt’s Taager, operating in logistics and transport, raised approximately $7 million in a pre-Series B round.

Recall that African startups raised $289M in January 2025 across 40 deals, reflecting a strong start to the year with a 240% increase over January 2024’s $85M. The $119M funds raised in February could suggest a dip from January but still a solid performance, consistent with growing investor confidence in African tech ecosystems.

Despite some declines in specific funding metrics, the broader outlook for African startup funding in 2025 remains strong, with continued investments in the fintech and logistics sector.

Looking Ahead

At $408M through two months, 2025 could hit $2.4B to $3B annually if the pace holds, surpassing 2024 but not 2022’s peak. The strong start contrasts with 2024’s cautious environment, where global venture capital tightened due to high interest rates and economic uncertainty.

Investors appear to be regaining confidence in African startups, possibly buoyed by proven resilience (e.g., $1 billion+ raised in 2024’s first seven months despite headwinds) and standout exits or unicorn births like Moniepoint and Tyme Group in 2024.