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African Startups Have Raised $2bn in 2025 So Far – Report

African Startups Have Raised $2bn in 2025 So Far - Report

African Startup Founders/Source: Getty Images

Briter Bridges’ new Venture Pulse shows an apparent, uneven recovery across African tech startups in 2025, but what stands out is not just the amount raised, but how it was raised: fewer deals, larger tickets, and a surge in debt financing.

Between January and August, over $2 billion flowed into more than 500 deals across the continent, with the median deal size climbing to $1 million. 

The short read for African startups in 2025: capital is concentrating. A small number of large rounds, and a wave of debt instruments, are lifting totals even as deal counts remain well below the 2021 peak. If you follow winners and losers, this report gives you both the scoreboard and the pattern behind it. 

What moved the needle

A handful of headline transactions drove much of the volume. Healthtech saw a major consolidation when US-based Eargo and South Africa’s hearX merged to form LXE Hearing, then secured $100 million from Patient Square Capital. 

Fintech company Zepz raised $165 million in debt from HSBC, bringing its total capital to more than $1 billion, and South Africa’s Nedbank completed a $93 million acquisition of payments firm iKhokha. These single events changed the shape of the year. 

Cleantech also punched above its weight: persistent, large debt deals, including packages from Sun King and d.light, pushed Cleantech funding toward $950+ million for the year and raised its median check to about $5 million, higher than many other sectors. 

Fewer deals, bigger checks

The report shows deal counts are down, but checks are larger. Since the 2022 bubble, investors have leaned toward later-stage, capital-heavy businesses. Sub-$250k rounds and the $250k–$1m tier have collapsed: the latter fell from 90 deals in 2022 to just 21 in 2025. The result is a 2025 picture that looks healthier by value, but narrower by opportunity. 

Seven of the top ten companies used debt to accelerate growth, a striking indicator that lenders and development finance players are comfortable backing asset-heavy, revenue-generating models across the continent. 

Sectors and products

Fintech remains the largest sector by value, $1+ billion, and leads in deal count (115+ deals). But Cleantech’s growth is the story of the year: nearly $950+ million, largely driven by debt. Health, mobility and property tech lag in total capital but remain steady in activity. 

Top product lines tell the same tale:

  • Solar energy: $830+ million (the single largest product grouping).
  • Payments & transfers: $455+ million.
  • Diagnostics, gas & cooking equipment, and POS solutions all appear in the top five. 

That distribution explains the debt tilt: asset-heavy, capital-intensive products (solar kits, gas equipment, etc.) are natural fits for structured lending and project finance.

Regions: East and Southern Africa surge

Geography shifted in 2025. Briter records East Africa ($865m+) and Southern Africa ($845m+) as the top-funded regions by value, while West Africa ($420m+) and North Africa ($450m+) sit behind. 

The long-time lead from West Africa, largely Nigeria-driven, has softened as billion-dollar rounds and large debt deals flow to companies headquartered in East and Southern African hubs. 

The gender gap remains glaring

I find this worrying: the recovery has not been inclusive. The report shows male-led teams capturing the vast majority of capital. Measured over the past five years, male-led teams took close to 90% of funding by value; in 2025 so far, roughly three quarters of funding has gone to primarily male-led companies. Female-led and mixed teams still receive only a sliver. 

M&A and churn

Activity on the exit front has been busy. Briter records 35+ acquisitions in 2025 to date, including high-profile buys like Meta’s purchase of Egypt’s PlayAI and Lesaka’s $60m+ acquisition of South Africa’s Bank Zero. The report also notes six company shutdowns this year, reminding us that while capital inflows are rising, risk and churn remain. 

What this means?

  • Recovery yes, broad-based no. 2025 is a rebound in dollar terms, but not a broad reopening of early-stage funding. 
  • Debt is mainstream. With debt crossing $1 billion for the first time, expect more structured financing for asset-centric companies. 
  • Concentration risk. A small number of very large deals can create the illusion of a healthy market while nascent startups struggle. 
  • Inclusion remains unfinished business. The gender imbalance and the collapse of the $250k–$1m tranche mean founders outside established networks face a tougher climb. 

Briter’s Venture Pulse gives us a simple, necessary truth among African startups in 2025: capital is back in Africa, but it’s pickier than before. If you’re building a capital-intensive product with clear revenue, 2025 is a good moment. If you’re an early-stage founder hunting sub-$1m cheques, the space is tighter and you’ll need a different playbook.

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Tags: Africa startup funding 2025African Startups 2025African venture capital 2025Briter BridgesCleantech Africadebt financing AfricaEast Africa startup fundingFINTECH AFRICAstartup funding AfricaVC in AfricaWest Africa venture capital
Joan Aimuengheuwa

Joan Aimuengheuwa

Joan thrives at helping individuals and businesses scale via storytelling...

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