African startups, led by Nigeria, have stormed into 2025 raking in $289 million in January alone—a staggering 240% jump from the $85 million raised in January 2024.
This explosive start indicates a vibrant shift in the continent’s startup ecosystem, according to data from Africa: The Big Deal, a key funding tracker.
While 2024’s January tally of $85 million was no slouch—ranking as the second-strongest January since at least 2019, just behind the 2022 boom year—the 2025 figures signal a new high-water mark.
Equity financing powered this surge, making up over 90% of the total, or $262 million. That’s the second-highest January equity haul in the past six years, reflecting robust investor faith in African ventures.
The funding spotlight shone brightest on Africa’s “Big Four”—Nigeria, Kenya, Egypt, and South Africa—which together snagged roughly 60% of the continent’s January capital.
The Big Deal spotlighted standout deals, including PowerGen, an energy innovator, which locked in over $50 million to roll out distributed renewable energy solutions across Africa. Fintech player LemFi also made waves, securing $53 million to fuel its push into Asia and Europe.
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Elsewhere, insurtech firm Naked nabbed $38 million in a Series B round to boost automation and broaden its offerings, while Enko Education pulled in $24 million to expand its African school network.
These deals hint at a growing trend: African startups are increasingly looking beyond the continent’s borders to scale.
The January 2025 boom arrives as a welcome rebound after a tough stretch. In 2023 and 2024, African startups struggled to attract capital, claiming less than 1% of global funding with a modest $1.5 billion in equity last year. Industry observers see this early-year surge as a turning point, signaling renewed momentum for the ecosystem.
Davidson Oturu, general partner at Nubia Capital, sees big potential ahead, particularly for Nigerian startups.
“There’s a real chance in 2025 for these companies to sharpen their edge and compete more aggressively for investment,” he noted. With this kind of start, Africa’s startup scene is clearly charging toward a brighter, bolder future.
