In a remarkable display of resilience and investor confidence, African startups raised a total of $254 million in May 2025, according to data compiled by Africa: The Big Deal. Egypt emerged as the continent’s clear leader in startup financing, spearheading six out of the seven largest funding rounds, and accounting for 31 per cent of all disclosed startup investments in Africa so far this year.
The latest monthly data signals a cautiously optimistic rebound in Africa’s startup scene, especially compared to earlier this year. Though the May figure trails the $343 million raised in April, it far outpaces March’s $50 million total, marking a significant bounce back in momentum. Year-to-date, African startups have attracted over $1 billion, a 40 per cent increase from the $750 million recorded during the same period in 2024.
The continent’s 12-month rolling funding total now stands at $2.5 billion, the highest since early 2024. Analysts see this resurgence as a sign of renewed faith in African innovation, especially in fintech, healthtech, proptech, and cleantech sectors.
Egypt led the way in both volume and size of investments. In total, Egyptian startups have raised over $330 million in 2025, with the country’s dominance underpinned by a slew of high-value deals.
Among them is Nawy, a proptech company, which secured a staggering $75 million in a funding mix—$52 million in equity from a Series A round led by Partech, and $23 million in debt. This marks the largest-ever proptech deal in Africa, highlighting growing investor appetite in real estate digitization across the continent.
Other top Egyptian deals include:
Tasaheel (subsidiary of MNT-Halan) raised $50 million in Egypt’s largest corporate bond issuance to date.
Valu, a leading fintech player, attracted $27 million from Saudi investors and is preparing for an IPO.
Thndr, a digital investment platform, secured over $15 million.
Sylndr, a mobility startup, and Money Fellows, a credit and savings app, both raised upwards of $13 million for regional expansion.
South Africa’s AURA, a healthtech company, was the only non-Egyptian startup to surpass the $10 million threshold. It raised $15 million in a Series B led by Partech and CAIF, as it eyes entry into the U.S. market.
Beyond Egypt, South Africa (26%), Nigeria (15%), and Kenya (12%) round out the top four nations leading Africa’s 2025 startup funding race. Nigeria, despite its economic reforms, has seen slower capital inflows, though notable deals in fintech and healthtech continue to sustain investor interest.
The broader African investment trend shows a tilt toward fewer but larger deals, as investors become more selective. In May alone, 36 startups each raised at least $100,000, with seven companies crossing the $10 million mark—a sign that while capital is flowing, it’s concentrating in high-growth ventures.
Investor confidence is also being reflected in exit activity. Four major exit events occurred in May, with three in Egypt:
MaxAB-Wasoko’s acquisition of Fatura;
A merger between wellness startups Miran and Welnes;
Catalyst Partners Middle East’s $23 million acquisition of Qardy.
Elsewhere in West Africa, BioLite acquired a majority stake in Baobab+, a solar energy and digital services company, expanding its footprint in sustainable energy delivery.
The current data shows that despite global economic uncertainty and reduced risk appetite, Africa’s tech sector is proving resilient. Analysts attribute this to the continent’s youth-driven demographics, growing digital adoption, and untapped market opportunities, especially in sectors such as renewable energy, healthtech, agritech, and logistics.
Speaking to our correspondent, fintech expert Emeka Onwudiwe noted, “Egypt’s dominance is not accidental. Their regulatory flexibility, strong talent pool, and access to both Gulf and African capital markets give them a clear advantage.”
With venture capitalists increasingly looking for scale-ready companies and proven models, Egypt’s playbook could become a case study for other African ecosystems aiming to attract large-ticket investments.
As Africa crosses the halfway mark of 2025 with over $1 billion in startup funding, the spotlight firmly rests on Egypt. While the continent’s broader startup scene remains cautiously optimistic, sustaining this upward trend will depend on macroeconomic stability, infrastructure investment, and regional cooperation to nurture scalable innovation across Africa.