Fundraising slowed across Africa’s start-up ecosystem in August, but the overall outlook for 2025 remains bullish, with year-to-date totals already outpacing 2024.
According to industry trackers Africa: The Big Deal, 33 start-ups secured a combined $93m (KSh 12.1bn) through deals of $100,000 (KSh 13m) and above, excluding exits.
While this made August the second quietest month of the year after March, the figure still exceeded August 2024’s tally and matched deal volume levels seen in the same period in recent years.
Roughly three-quarters of August’s fundraising came through equity, with the remainder split between debt and other instruments such as a $9m+ (KSh 1.17bn) securitized bond issuance by Egyptian consumer credit platform valU.
The largest equity rounds were led by Koolboks, which closed an $11m (KSh 1.43bn) Series A; Hewatele, a Kenyan medical oxygen supplier, raising $10.5m (KSh 1.37bn); Egyptian grocery app Breadfast with a $10m (KSh 1.3bn) Series B2; Nigerian logistics player Chowdeck with $9m (KSh 1.17bn); and Rwandan EV company Ampersand, which is expected to have raised in the eight-digit range.
Egypt, Kenya, and Nigeria dominated the funding landscape, together accounting for about 75% of the total. Sector distribution was relatively even, with at least five industries attracting 10% or more of the month’s capital inflows, reflecting a diversified investment appetite.
M&A activity also continued, most notably with South Africa’s Nedbank acquiring fintech iKhokha in a deal worth more than $93m (KSh 12.1bn).
Despite August’s dip, the year as a whole continues to build momentum. African start-ups have raised approximately $2bn (KSh 260bn) so far in 2025, including $1bn (KSh 130bn) in equity. Analysts say this puts the continent on track to surpass 2024 totals, reversing two years of year-on-year declines. If large rumoured deals materialise, the final figure could approach $3bn (KSh 390bn), comparable to peak years such as 2023.
Investor appetite is also being stoked by initiatives like the African Angel Academy, which is currently recruiting its 12th cohort ahead of a 12 September deadline. The programme offers tailored training to equip aspiring angel investors with the tools to navigate the ecosystem.
While August’s quieter pace may have disappointed some, industry insiders say the broader trend is encouraging. With macroeconomic headwinds easing, mega-deals in the pipeline, and fresh capital flowing into diverse sectors, 2025 could mark a return to sustainable growth for Africa’s tech ecosystem.
