Keypoints:
- Funding growth tops past two years
- Two IPOs break six-year drought
- Equity deals rise sharply
AFRICAN start-ups have raised more capital in 2025 than in both 2024 and 2023, marking the first meaningful rebound in early-stage investment since before the pandemic. The findings come from Africa: The Big Deal, a newsletter which has tracked the continent’s start-up funding activity for nearly seven years.
According to the newsletter, the ecosystem has recorded positive double-digit growth, rebounding by around 33 percent year-on-year after two consecutive annual declines. Total funding excluding exits had fallen by 35 percent in 2023 and a further 25 percent in 2024.
The data show that African ventures had collectively raised ‘nearly $3bn’ in 2023. In 2025, that number has already surpassed ‘over $3bn’, and the year is not yet closed. While final December figures will only be released in early January, the numbers already reflect a clear reversal of the downward trend.
Crucially, equity investment has also overtaken 2023 levels. Africa: The Big Deal notes that equity fundraising, rather than debt-led growth, is driving the recovery, signalling renewed investor confidence in the continent’s venture market. The newsletter describes the upswing as ‘a real breath of fresh air’.
Two IPOs end six-year wait
The wider recovery was matched by a rare event in Africa’s technology markets. In November, two start-ups completed initial public offerings (IPOs), the first such listings on the continent in more than six years. The last venture-backed IPOs were recorded in 2019, when Jumia and Fawry entered the public markets.
On November 4, South African fintech Optasia listed on the Johannesburg Stock Exchange, raising $345 million and valuing the firm at $1.4bn. Later in the month, Moroccan fintech Cash Plus listed on the Casablanca Stock Exchange, raising $82.5 million at a market capitalisation of around $550 million.
The two floats are viewed as an important milestone for the ecosystem, with analysts suggesting they could restore confidence in exit pathways for investors and founders. Africa: The Big Deal highlighted the listings as ‘a pretty extraordinary event’ given the six-year gap.
Mixed monthly totals but strong annual trend
November saw $162 million raised excluding exits, with 79 percent structured as equity. The total is broadly in line with November 2024, when $181 million was raised, though below November 2023’s $267 million. The month ranks as the fifth-strongest in 2025 by value.
Across the period, 32 ventures each raised $100k or more. Six secured rounds of $10 million or greater. South Africa’s SolarSaver led with a $60 million round for its energy-as-a-service expansion. Tunisia’s agritech start-up nextProtein raised $21 million, and West Africa’s SolarX secured €15 million. South African fintechs Omnisient and Lula closed $12.5 million and $10 million respectively. Agritech firm SwiftVEE also raised $10 million.
By the end of November, total funding excluding exits stood at $2.8bn, around 50 percent higher than the amount raised at the same point in 2024. The number of ventures raising $1m or more is also up.
A comparison between January-November 2025 and the same period in 2023 shows almost identical totals: $2.81bn including $1.64bn in equity and 196 $1 million-plus rounds in 2025, against $2.84bn including $1.62bn in equity and 195 such rounds in 2023. To surpass the full 2023 total, companies need to raise at least $172 million in December. The newsletter suggests that the target is achievable, as the 2025 monthly average sits at around $250 million.
Africa: The Big Deal concludes that 2025 has been ‘a pretty good year’, backed by stronger deal volumes, rising equity participation and a return of the IPO pathway.
