African startups raised $289 million in January 2025 despite rising global uncertainty. This represents a 240% increase from the $85 million secured during the same period last year.
This is the second-highest January funding since at least 2019 and surpassed only by the record-breaking numbers of January 2022.
Data from Africa: The Big Deal indicates that equity financing dominated the month’s fundraising landscape, accounting for over 90% of the total, or approximately $262 million. This sharp rise in funding signals a resurgence of investor confidence in Africa’s startup ecosystem following two challenging years in 2023 and 2024.
Nigeria, Kenya, Egypt, and South Africa—Africa’s leading startup hubs—collectively attracted nearly 60% of the funds raised in January. Notably, three of the largest deals highlight an ongoing trend of African startups scaling their operations beyond the continent.
Among the standout transactions, PowerGen secured over $50 million to expand distributed renewable energy solutions across Africa. Fintech firm LemFi raised $53 million to drive its expansion into Asia and Europe, while South Africa’s insurtech startup Naked secured $38 million in a Series B round to automate and scale its insurance offerings. Additionally, Enko Education secured $24 million to grow its African school network.
The strong start to 2025 follows a total of $2.2 billion raised by African startups in 2024, largely driven by mega-deals involving Nigeria’s Moniepoint and South Africa’s Tyme Group. Though last year’s funding represented a 25% drop from 2023’s $2.9 billion, the early momentum in 2025 suggests a potential recovery in investment activity, particularly across fintech, energy, education, and insurance.
With investor interest surging once again, Africa’s startup ecosystem is poised for a year of dynamic growth, deal-making, and global expansion.
