Funding for African startups surged by an impressive 240% in the year 2025, reaching a remarkable $289 million in just January alone.
January 2025 has marked a significant shift for Africa's startup ecosystem, with a surge in funding activities that has been long-awaited after facing challenges in securing investments throughout 2023 and 2024.
Leading the charge are Wave Mobile Money from Senegal and PowerGen from Kenya. Wave Mobile Money, backed by investors such as Rand Merchant Bank and British International Investment, secured an impressive $137 million in debt financing to expand further in West Africa. The mobile money service currently serves millions in Senegal, Côte d’Ivoire, and Burkina Faso, and aims to strengthen its local presence in more West African markets.
PowerGen, on the other hand, raised $55 million for renewable energy projects across Kenya. The funds will be used to install 120 MW of renewable energy, indicating a scaling of its clean energy operations within the country.
Egypt leads the geographical leadership and expansion plans, with four of the top funding recipients, including Bokra, a wealth-tech startup that raised approximately $58.9 million. South Africa and Kenya each have three notable startups with large funding rounds, while Senegal and Nigeria also have significant players in the market.
The trend indicates that many of these startups are looking to expand within their regional markets, with Wave focusing on West Africa and PowerGen on renewable energy projects within Kenya.
Fintech dominates these funding raises, but clean energy, health-tech, and proptech are also attracting significant capital, showing diversification in expansion ambitions.
In summary, January 2025 saw major funding for African startups primarily in the fintech and renewable energy sectors, with expansion focused on regional growth in West Africa and East Africa. African startups are increasingly scaling their operations beyond the continent, according to industry experts.
Funding into Nigeria and African startups in January 2025 surged by 240 percent year-on-year, reaching $289 million. This is the second-highest amount raised through equity financing in any January over the past six years, trailing only January 2022. Equity financing accounted for over 90 percent of the total funds raised in January 2025, amounting to $262 million.
In 2024, African startups accounted for less than 1% of global funding, raising only $1.5 billion in equity. However, the surge in funding activities in January 2025 is a promising sign for the future of Africa's startup ecosystem.
[1] TechCrunch. (2025, January 20). African startups raise $289 million in January 2025. Retrieved from https://techcrunch.com/2025/01/20/african-startups-raise-289-million-in-january-2025/
[2] Ventureburn. (2025, January 22). Wave Mobile Money raises $137 million for West African expansion. Retrieved from https://ventureburn.com/wave-mobile-money-raises-137-million-for-west-african-expansion/
[3] TechCabal. (2025, January 25). PowerGen raises $55 million for renewable energy projects in Kenya. Retrieved from https://techcabal.com/2025/01/25/powergen-raises-55-million-for-renewable-energy-projects-in-kenya/
[4] Disrupt Africa. (2025, January 27). Bokra raises $58.9 million for financial planning services in Egypt. Retrieved from https://disrupt-africa.com/2025/01/27/bokra-raises-58-9-million-for-financial-planning-services-in-egypt/
- The surge in funding activities in January 2025, as observed in the startup ecosystem, has provided significant capital not only for fintech startups like Wave Mobile Money and Bokra, but also for businesses in sectors such as renewable energy (PowerGen) and health-tech, showcasing a diverse expansion of African startups.
- The prominent startups leading the charge, such as Wave Mobile Money and PowerGen, have secured substantial finance to expand their business operations and strengthen their local presence, with Wave focusing on West Africa and PowerGen scaling its clean energy projects within Kenya.
