Quick Summary:
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June 2025 funding hit $365 million, the highest monthly total in nearly a year.
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H1 2025 totalled $1.35 billion, a 78% increase over H1 2024.
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Equity funding led at $950 million, while debt surged to $400 million, thanks to a strong June.
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Nigeria’s startup funding lags, with Egyptian startups dominating recent fundraising charts.
African startups secured a total of $365 million in funding in June 2025, making it the strongest month this year and the best single-month performance in nearly a year. This is according to the latest data from Africa: The Big Deal.
Funding Surges in First Half of 2025
The strong performance in June pushed total funding for the first half of 2025 (H1 2025) to $1.35 billion. This represents a 78% increase compared to the $800 million raised during the same period in 2024.
The H1 2025 total is also nearly equal to the $1.37 billion raised in the second half of 2024, showing only a marginal 1.5% decline.
Monthly Trends Indicate Strong Momentum
June’s exceptional numbers were not a fluke. Four out of the six months in H1 2025 saw monthly totals exceeding $250 million, reinforcing the upward trend in startup funding.
While March was a low point, it now appears to be an outlier rather than a sign of broader weakness.
On average, African startups raised $237 million monthly in H1 2025. This is a sharp increase from the $133 million monthly average in H1 2024 and well above the $187 million average for the full year 2024.
Equity and Debt Funding Growth Show Balanced Recovery
Equity funding led the way in H1 2025, with startups raising $950 million—a 79% increase compared to H1 2024. However, this figure is 7% lower than the $1.02 billion in equity raised in H2 2024.
Debt funding, which lagged earlier in the year, made a strong comeback in June. Startups raised $227 million in debt last month alone—more than half of the H1 total and the highest monthly debt total in over two years.
A significant portion of that came from Senegal-based fintech Wave, which raised $137 million in debt funding. By the end of June, total debt funding hit $400 million, up 55% from H1 2024, and nearly equal to the $405 million recorded in H2 2024.
Investor Confidence Returns Despite Headwinds
The strong numbers in both equity and debt suggest that Africa’s startup ecosystem is stabilizing, following a downturn that began in 2022.
The consistent funding across multiple months reflects growing investor confidence and improved deal flow, even as global economic uncertainty continues.
If the current momentum continues through the second half of the year, 2025 could signal a full recovery in African tech investment.
Nigeria’s Lagging Performance Raises Questions
Despite the continent-wide rebound, Nigeria’s startup funding scene remains sluggish. Once a leader in Africa’s tech ecosystem, Nigeria has recently fallen behind.
In May, Nairametrics reported that no Nigerian startup made the top 10 fundraising list, while Egyptian startups led with large funding rounds. This trend suggests a possible shift in regional investment dynamics that may need attention from stakeholders in Nigeria.