African startups raised a total of $343 million in April 2025, making a strong comeback after a disappointing March.
According to data from Africa: The Big Deal, last month’s funding also marks the second-best April on record, surpassed only by the funding frenzy of April 2022.
This surge represents a 4.5x increase compared to April 2024, offering strong signs that investor confidence in African innovation is rebounding—albeit with some caution.
In March, African startups managed to secure only $50 million, and it was one of the lowest monthly totals since late 2020.
Major deals
The month’s impressive tally was driven by a handful of large deals. South African healthtech company, hearX, led the way by raising $100 million through a merger with U.S.-based hearing aid firm Eargo.
- This is the first mega-deal (worth $100 million or more) on the continent in 2025 and marks a significant cross-continental play in the global hearing health market.
- Egyptian Islamic fintech Bokra raised $59 million via a sukuk issuance—a rare move for a startup just a year after its $4.6 million pre-seed round.
- The deal not only shows the maturing of Islamic fintech in North Africa but also growing investor appetite for alternative financing structures.
- Stitch, a South African payments infrastructure firm, secured $55 million from existing investors as it expands its end-to-end payment solutions across the continent.
Announced exits
While the report excludes exits from the funding total, there were at least four notable exits in April, three of which were in fintech:
- ADVA in Egypt was acquired by UAE-based Maseera.
- Bankly, a Nigerian fintech, was bought by investment firm C-One Ventures.
- South Africa’s Peach Payments acquired Senegal-based PayDunya to deepen its reach in Francophone West Africa
Strong year-to-date performance
The April rebound has improved the broader picture for African startup funding in 2025. Between January and April, startups raised $803 million across 163 deals, a 43% increase from the $563 million raised in the same period last year.
The number of startups securing deals has also grown from 147 in Jan–Apr 2024 to 163 this year, showing improved breadth in deal flow.
At least 225 unique investors have participated in deals worth $100,000 or more so far this year, underscoring growing confidence and diversity in capital sources.
“But if this pace keeps up, 2025 could well be a good year. Not to mention that since early 2024, at least $1.3 billion in funding was closed by VC funds focused on Africa, including Janngo Capital (with a focus on gender), Airnergize Capital, Verod-Kepple Africa Ventures, Saviu’s Fund II (focused on Francophone Africa) or LoftyInc Capital, to name just a few,” the report noted.
What you should know
The improved funding raises hope of survival for many African countries requiring capital injection to stay afloat in the face of the current economic realities.
- According to a recent report by Startup Graveyard , funding shortage was the primary cause of African startups’ shutdowns in 2024, the same as in 2023.
- According to the report, 18 startups shut down in Africa in 2023. The figure, however reduced in 2024 as 11 shutdowns were recorded.
Out of the 11 startups shut down, hibernated, or entered administration in 2024, the report shows that six of them were Nigerian startups.