African startups rebounded in April as a total of $343 million was raised in the month, according to a new report released by Africa: The Big.
The figure represents the second-best April on record for the continent’s startup ecosystem, trailing only the $480 million raised during the funding boom of April 2022.
April’s recovery marks a significant turnaround from March, when startups on the continent secured just $50 million — the lowest monthly total since 2020.
The resurgence was powered by a handful of large-scale transactions, notably a $100 million merger involving South African healthtech firm hearX and U.S.-based hearing aid company Eargo.
The hearX transaction is the first megadeal of 2025, defined as a deal worth $100 million or more, and is expected to position the combined entity as a global leader in hearing care technology.
The deal underscores the increasing appeal of cross-continental mergers and acquisitions in Africa’s growing digital health sector.
Also contributing to the strong April performance was Egyptian Islamic fintech startup Bokra, which raised $59 million through a sukuk issuance — an uncommon move for a company barely a year past its $4.6 million pre-seed round.
The deal highlights the rising maturity of Islamic fintech in North Africa and the growing investor appetite for alternative capital-raising instruments.
Another notable deal came from South Africa’s Stitch, a payments infrastructure company, which secured $55 million from existing investors to accelerate the rollout of its end-to-end payment solutions across key African markets.
The report noted that April’s funding figure represents a 4.5x increase compared to the $76 million raised in April 2024, providing clear evidence that investor confidence in African startups is rebounding.
The increase is not only in deal volume but also in capital concentration, with high-value transactions driving total inflows.
Beyond the funding totals, Africa also recorded at least four notable exits in April, three of which occurred in the fintech sector. Egypt’s ADVA was acquired by UAE-based Maseera, while Nigeria’s Bankly was purchased by C-One Ventures.
South Africa’s Peach Payments acquired Senegal-based PayDunya, expanding its footprint in Francophone West Africa.
Between January and April 2025, African startups have raised $803 million across 163 transactions — up 43% from the $563 million raised in the same period in 2024.
The number of startups securing funding also increased from 147 in the first four months of 2024 to 163 this year, indicating broader deal flow and improved investor diversification.
According to the report, at least 225 unique investors have participated in transactions worth $100,000 or more so far this year, reflecting a more distributed capital base and growing trust in African innovation sectors.
The positive momentum follows an earlier announcement that over $1.3 billion in capital has been committed to Africa-focused VC funds since early 2024. These include Janngo Capital, Verod-Kepple Africa Ventures, Airnergize Capital, Saviu’s Fund II, and LoftyInc Capital, among others.
The report concludes that if the current pace continues, 2025 could mark a substantial recovery year for Africa’s venture capital landscape, signaling that the continent remains a viable destination for long-term innovation-focused investments.
