African Startups Raise $1.4 Billion In First Half 2025 78% Increase From 2024

African startups have demonstrated remarkable resilience and growth in the first half of 2025, securing a total of $1.4 billion in venture funding. This figure represents a significant 78% increase compared to the $800 million raised during the same period in 2024. However, it is important to note that the first half of 2024 was considered a relatively poor period for funding. When compared to the second half of 2024, which was more fruitful, the difference is minimal, with startups raising $1.4 billion in both halves.

The first half of 2025 marks a solid performance for African startups, showing a notable improvement over the previous year. Despite being the second poorest first half since 2022 and the third slowest half out of the seven since then, the numbers are still impressive, especially considering the alignment phase the African startup funding space is currently undergoing.

Of the $1.4 billion raised, $950 million came in the form of equity, representing 68% of the total. Debt financing accounted for $400 million, or 28.5%, while grants made up the remaining $50 million, or 3.5%. This distribution highlights the diverse funding strategies employed by African startups, with a strong emphasis on equity investments.

The month of June was particularly strong for African startups, with $365 million raised in funding. This made it the strongest month of 2025 so far and the best in almost a year. The previous high was in April 2025, when startups raised $343 million. Excluding February, when $119 million was raised, and March, which saw a mere $50 million, other months in the first half of 2025 crossed the $250 million mark, with June and April exceeding $300 million. The monthly average funding for the first half stands at $237 million, significantly higher than the $187 million average for the entire year 2024 and the $133 million average for the first half of 2024.

June's impressive total was largely driven by Wave, a Senegalese fintech company that secured $137 million in debt financing. This funding was led by Rand Merchant Bank and supported by a consortium of global development finance institutions, including British International Investment, Finnfund, and Norfund. Wave plans to use this funding to make financial services more affordable and accessible to users. The debt funding in June reached $227 million, making it the highest debt-funded month in over two years.

Other notable startups that performed well in the first half of 2025 include South Africa’s hearX, a healthtech company based in Pretoria. In April, hearX secured $100 million through its merger with U.S.-based Eargo, demonstrating significant ambition in disrupting the hearing health market. In May, Egypt-based property technology company Nawy raised $75 million in a record-breaking deal, marking the largest proptech deal on the continent. Additionally, in January, Nigerian cross-border payment startup LemFi and Kenya-based PowerGen, which secured $50 million to develop renewable power projects, also made significant contributions to the funding landscape.

Overall, the first half of 2025 has been a period of substantial growth and investment for African startups, with June standing out as a particularly strong month. The diverse funding strategies and the significant investments in various sectors highlight the continent's potential for innovation and economic development.