African Startups Raise $254 Million in May 2025, Led by Egypt’s Strong Investment Surge
Startups across Africa raised a total of $254 million in May 2025, marking a slight decline compared to April but still an impressive figure compared to March. While the May total did not set new records, it pushed Africa’s year-to-date total to over $1 billion, reflecting a 40% increase compared to the $750 million raised during the same period in 2024, according to data from Africa: The Big Deal.
African Startups Break Records with $2.5 Billion Raised in Last 12 Months
The report reveals a strong year for African startups, with the total funding raised over the last 12 months (from June 2024 to May 2025) reaching $2.5 billion, the highest rolling 12-month total since early 2024. Although the number of individual deals in May was fewer than in previous months, with 36 startups securing raises of $100,000 or more, the average deal size grew, indicating stronger investor confidence and interest in Africa’s growing tech ecosystem.
Notably, seven ventures secured over $10 million each, underscoring the continued interest in Africa’s high-growth sectors, despite the overall drop in the number of deals. This trend signals that African tech remains a strong investment proposition.
Egypt Leads African Startup Funding in 2025
Egypt was the standout performer in May, accounting for six out of the seven largest deals across the continent. Egyptian startups have been the driving force behind the surge in 2025 funding, securing over $330 million so far, which constitutes 31% of all funding raised in Africa this year.
The biggest deal of May was Nawy, an Egyptian proptech platform, which raised $75 million. The Series A round included $52 million in equity and $23 million in debt, making it Africa’s largest-ever proptech deal. Nawy’s success highlights the growing importance of the real estate technology sector in Africa.
Other notable deals in Egypt include:
- Tasaheel, a subsidiary of MNT-Halan, which completed Egypt’s largest corporate bond issuance at $50 million.
- Valu, a fintech firm, raised $27 million from Saudi investors, with plans for an upcoming public listing.
- Thndr, another fintech player, raised over $15 million in May.
- Sylndr, a mobility start-up, raised $15 million in a Series A round.
- Money Fellows, a digital savings and credit platform, secured $13 million in a pre-Series C round to fund its expansion outside of Egypt.
South Africa and Other African Countries Make Notable Moves
Outside Egypt, South Africa also saw a standout deal in May, with AURA, a healthtech start-up, raising $15 million in a Series B round co-led by Partech and CAIF. The funding will help AURA expand into the U.S. market, showcasing the increasing global reach of African healthtech ventures.
Breakdown of African Startup Funding in 2025
Egypt leads the charge in 2025, securing 31% of total disclosed investments in Africa, followed closely by South Africa at 26%, Nigeria at 15%, and Kenya at 12%. These countries continue to dominate the African startup ecosystem, attracting investors seeking to capitalise on high-growth markets.
Major Exits Highlight African Startup Maturity
Alongside the strong funding inflows, May saw several notable exit events that reflect the maturation of Africa’s tech ecosystem:
- MaxAB-Wasoko’s acquisition of Fatura.
- The merger of wellness startups Miran and Welnes.
- Catalyst Partners Middle East’s $23 million acquisition of Qardy.
In West Africa, BioLite acquired a majority stake in Baobab+, a solar energy and digital services provider, marking a significant exit for the region.
Continued Growth and Optimism for African Startups
In summary, African startups continue to attract significant investment, with $254 million raised in May 2025 alone. Egypt’s dominance in the funding landscape, along with the increasing deal sizes and the emergence of large tech sectors like fintech and proptech, highlights the continent’s growing importance in the global investment scene. Despite a slight dip in the number of deals, the funding momentum for African startups remains strong, and with more exits on the horizon, the future looks bright for the continent’s entrepreneurial ecosystem.
