Equity deals in energy, fintech, insurtech, and education have enabled African startups to secure $289 million in January through several deals worth $100,000 and above.
This figure represented a staggering 240 per cent increase compared to the $85 million raised in January 2024, making it the second-best January for startup funding since at least 2019, trailing only behind January 2022 during the peak of the funding boom.
According to the January data released yesterday by Africa: The Big Deal, equity financing dominated the fundraising landscape, accounting for over 90 per cent of the total amount raised ($262 million).
The document showed a significant jump from January 2024 and marked the second-highest January for equity fundraising in the past six years.
The four largest deals in January 2025 alone accounted for nearly 60 per cent of the total funding raised across the continent.
The report, which noted that the four deals originated from one of Africa’s “Big Four” startup ecosystems—Nigeria, Kenya, Egypt, and South Africa, observed that
three of these deals highlighted a growing trend of African startups expanding their operations beyond the continent.
Africa: The Big Deal listed the top deals of the month, including PowerGen (Energy). The renewable energy company raised over $50 million to establish a scalable platform for distributed renewable energy solutions across Africa. This funding underscores the increasing investor appetite for sustainable energy solutions on the continent.
LemFi, a fintech startup, secured $53 million to further its expansion into Asia and Europe. LemFi’s success reflects the global appeal of African fintech innovations, particularly in the remittance and cross-border payment space.
South Africa-based Naked raised $38 million in a Series B round to automate and expand its product offerings. The insurance sector continues to gain traction as startups leverage technology to disrupt traditional insurance models.
Enko Education, an education-focused startup, secured $24 million to continue expanding its network of African schools. This investment highlights the growing interest in addressing Africa’s education gap through innovative solutions.
The strong fundraising performance in January 2025 signaled a renewed confidence in Africa’s startup ecosystem, which faced significant funding challenges in 2023 and 2024.
The diversification of sectors attracting investment—from energy and fintech to insurtech and education—also reflects the continent’s evolving economic landscape.
In 2024, African startups cumulatively raised a total of $2.2 billion, driven by two mega deals by Nigeria’s Moniepoint and South Africa’s Tyme Group.
The amount included equity, debt, and grants secured by the continent’s startups.
While the amount raised in 2024 was quite significant, it represents a 25 per cent drop in funding compared to the $2.9 billion raised on the continent in 2023.
