African Startups Secure $93m in August as Year-to-Date Value Surpasses $2bn

Fundraising activity among African start-ups slowed in August, making it the second-quietest month of 2025 after March, according TheBigDeal, a platform tracking reported startup investments in Africa and beyond.

The latest data show that the $93 million raised across 33 disclosed deals was a steep drop compared to July’s unusually busy performance, but analysts say the figures are no cause for concern.

The sentiment was supported by historical data, showing that total amount raised last month still surpassed August 2024 levels, with the number of start-ups securing capital roughly in line with previous years.

Year-to-date, African start-ups have already raised $2 billion with half of the amount coming in as equity, therefore, keeping the ecosystem on track to outpace 2024’s tally and potentially rebound to near-$3 billion levels by year-end, to reverse two consecutive years of decline.

Equity accounted for about three-quarters of August’s total, with debt making up the rest.

Notably, Egyptian fintech valU issued a securitised bond worth more than $9 million. The largest equity rounds included Koolboks’ $11 million Series A, Hewatele’s $10.5 million raise, Breadfast’s $10 million Series B2, Chowdeck’s $9 million Series A, and a fresh round by Ampersand estimated in the eight-digit range.

Meanwhile, Egypt, Kenya, and Nigeria dominated the funding landscape, together capturing 75% of the month’s total.

Sectorally, investment was evenly distributed, with at least five industries accounting for 10% or more of funding each.

M&A activity also added to the momentum, highlighted by Nedbank’s acquisition of South African payments firm iKhokha in a deal valued above $93 million.

With strong activity so far in 2025 and rumours of mega-deals ahead, industry watchers say African start-ups remain on a positive growth trajectory despite month-to-month fluctuations.