After two years of decline, African startups staged a dramatic comeback in 2025, raising $3.2 billion, a 40% surge from 2024’s $2.2 billion. For the first time in the continent’s tech history, clean energy companies captured more funding than fintech, fundamentally reshaping Africa’s investment landscape.
The Mega-Deal Phenomenon
Sixty-nine startups raised over $10 million in 2025, a 73% jump from just 40 in 2024. Eight companies closed rounds exceeding $100 million, compared to five in 2024. This concentration of capital in larger deals reflected a decisive shift in investor strategy: backing proven companies with clear paths to profitability rather than spreading resources across hundreds of early-stage bets.
The approach prioritised infrastructure-building ventures over consumer-focused models. Investors wanted companies with asset-backed business models, predictable cash flows, and solutions to Africa’s fundamental infrastructure gaps.
Clean Energy’s Historic Takeover
By Q3 2025, clean energy overtook fintech as Africa’s top-funded sector, accounting for 53% of total investment and reaching $519.5 million. Companies like Sun King, M-KOPA, d.light, and Spiro collectively captured half of the year’s mega-deals.
Sun King exemplified this shift. The Kenya-headquartered solar company secured $40 million in equity financing and subsequently closed a massive $156 million securitisation deal. The company plans to deploy 50 million solar kits across Africa between 2026 and 2030, providing clean energy access to 200 million people.
M-KOPA raised $160 million for household energy solutions. Electric mobility startup Spiro secured $100 million for battery-swapping infrastructure. D.light expanded its receivables financing by $300 million. These weren’t speculative ventures; they were infrastructure plays with proven unit economics.
Kenya dominated clean energy investment, with Nairobi attracting $536 million across 10 deals; more than half of all startup funding on the continent. The country’s regulatory environment proved crucial, with policies targeting 100% clean energy by 2030 and net-metering regulations enabling households to sell excess power back to the grid.
Fintech’s Continued Strength
While dethroned from the top spot, fintech remained formidable. The sector raised over $1 billion by September 2025, though funding increasingly flowed toward regulatory technology, embedded finance, and B2B infrastructure rather than consumer payments.
Nigeria retained its fintech leadership position, with funding hitting $162.8 million by mid-2025. Moniepoint raised $90 million, building on its 2024 unicorn valuation. Senegalese mobile money provider Wave secured $137 million in debt financing. Egypt’s MNT-Halan, having raised over $1 billion to date, stood out as Africa’s top fintech fundraiser.
Geographic Patterns and Exits
Nigeria, Kenya, South Africa, and Egypt maintained their dominance, capturing 85.7% of total funding. However, secondary markets showed signs of life; Senegal attracted 12.1% of funding in H1 2025, largely driven by Wave’s substantial raise.
Exit activity marked important progress. The ecosystem recorded its first two IPOs in November after more than six years, alongside over 40 strategic acquisitions. This development was crucial for long-term health, enabling capital recycling and creating experienced entrepreneurs who become ecosystem builders.
What 2025 Reveals About Africa’s Future
The $3.2 billion raised in 2025 vindicated a clear thesis: investors are backing African startups that build essential infrastructure. Energy, payments, and mobility aren’t discretionary services but foundational systems enabling economic activity.
Clean energy startups attracted massive investment because they’re providing basic electricity to hundreds of millions currently using kerosene lamps or suffering unreliable grid power. The addressable market is enormous, the need is urgent, and business models are proven.
Since 2019, African startups have raised nearly $20 billion, with over 2,200 ventures securing at least $100,000. The cumulative figures demonstrate substantial depth and resilience despite year-to-year volatility.
