Disclosed by Africa: The Big Deal, the amount raised was well below the $276 million recorded in January 2025 and also under the average monthly total of $263 million seen over the past 12 months. 

Still, it was higher than January figures from earlier years, including 2023 and 2024, when funding volumes were far lower.

What stood out in January was not just the money, but the number of deals. 

Only 26 startups across the continent announced funding of $100,000 or more. That figure is unusually low and the weakest monthly count since at least 2020. 

A small group of companies accounted for much of the funding announced during the month. In Egypt, fintech firm valU secured $64 million in debt from the National Bank. 

Nigeria-based mobility financing company MAX raised $24 million through a mix of equity and asset-backed debt.

Several other firms closed double-digit rounds. NowPay, another Egyptian fintech, raised $20 million in equity. Moroccan proptech start-up Yakeey announced a $15 million Series A round. 

Terra Industries raised $12 million, while Côte d’Ivoire fintech company Cauridor announced a round of more than $10 million.

There were also transactions that did not count towards the funding total. Flutterwave acquired Nigerian startup Mono in an all-stock deal valued at about $30 million. 

Tech talent company Savannah was acquired by Commit, and Izili Group took over off-grid solar firm Qotto.

January is usually a slow month for startup funding, both African and international, especially after a busy December, and similar dips were recorded at the start of 2023, 2024 and 2025, not just 2026. 

Even so, the thin deal flow this time has shown how tough investors have become.

Fintech continued to attract the largest share of capital, but deals in property technology, mobility and defence showed that interest was spread across sectors. 

Egypt and Nigeria led activity, while Morocco and Côte d’Ivoire featured through fewer but sizeable transactions.

Four countries absorbed 84% of all funding, with South Africa and Kenya alone accounting for more than half. Egypt followed. Nigeria slipped to 8%, its lowest share since 2019, after years as the top destination for large funding rounds.

However, Nigeria still closed more deals than any other country.

That contrast runs through Briter’s findings as deal volume stayed high, but cheque sizes grew larger and fewer. African startups are still forming and raising capital, but in 2025, funding became harder to access.

Fintech and climate-focused businesses received most of the funding by value, driven by large, capital-heavy deals. Agriculture, health, education and AI startups accounted for most transactions, keeping innovation spread wide even as funding clustered at the top.

How companies raised money also changed. Debt financing crossed $1 billion for the first time, overtaking equity as scaled startups leaned on loans, structured facilities and other non-dilutive instruments to grow. 

Revenue strength, assets and predictability are now more important than rapid expansion.

Exit activity hit a record. Sixty-three acquisitions were announced in 2025, the highest ever recorded. More than half involved startups being bought by corporates, not other startups or private equity firms. Few disclosed prices, but the volume alone shows a market where buying has become easier than building.

Foreign investors still dominate African venture funding, led by the United States and Europe. Briter, however, notes a gradual widening of the pool, with more inflows from Asia and the Gulf, alongside a stronger base of Africa-focused investors providing steadier capital.

The bigger picture is restraint, not retreat. Dario Giuliani, founder and managing director at Briter, said Africa’s investment landscape continues to move through cycles of expansion and preservation, with the current phase firmly in the latter. 

“Capital is more selective, risk appetite more measured, and growth expectations more realistic,” he noted. “Yet beneath this restraint, company formation remains active across the continent, even as a handful of ecosystems continue to dominate and true geographic diversification remains limited.”

In short, funding has returned but access has not. Africa’s tech sector is still moving forward, just with fewer passengers in first class.

According to the latest report by Africa: The Big Deal, 83% of the total was raised by two companies, d.light and Sun King. 

d.light, an energy solutions company providing affordable and sustainable solar power to communities across Kenya, Uganda, and Tanzania, expanded its receivables financing by $300 million.

Sun King, one of Africa’s leading off-grid solar energy providers, secured a $156 million debt facility.

In July, 61 startups announced at least $100,000 in funding, a significant jump compared to the first half of the year, when the number typically hovered around 40 or fewer.

Of the 61 startups, spread across 15 countries, 41 were located in the “Big Four” markets: Nigeria, Egypt, South Africa, and Kenya. However, $493 million, representing 89% of the total funding raised, came from debt deals.

In terms of equity, $58 million was announced, marking the lowest equity funding within a month this year. Rwazi’s $12 million Series A was the largest equity deal in July.