5 Companies Raised 43% of African Fintech Funding in 2025, Leaving Early-Stage Startups Struggling
African fintechs announced 224 deals in 2025, raising $1.4 billion across 196 unique companies, according to Briter’s latest report. While the sector remains the most funded in Africa by volume and deal count, the distribution of capital reveals extreme concentration and a missing funding ladder for early-stage startups.
Funding Concentration Among Top Deals
Just five fintech companies raised $605.7 million, accounting for 43% of total disclosed funding in 2025:
- Zepz (formerly WorldRemit): $165M
- Wave Mobile: $137M
- MNT-Halan (Egypt): $120.4M
- iKhokha (South Africa): $93.3M
- Moniepoint (Nigeria): $90M
Expanding to the top 10 deals, these companies raised $872M, or 62% of all disclosed funding, while the top 20 deals captured $1.1B, leaving only $304M for the remaining 97 disclosed companies.
Remarkably, 79 fintechs (40% of all deals) did not disclose their funding amounts, highlighting significant opacity in the market. Some undisclosed rounds likely involve acquisitions, partnerships, or small pre-seed investments.
Early-Stage Startups Receive Minimal Capital
At the bottom of the funding spectrum, many fintech startups raised amounts too small to scale:
- 16 companies raised less than $50,000, with six raising exactly $3,450, likely via standard accelerator or pre-seed programs.
- Smaller clusters raised $5,000 – $38,000, enough for prototypes or pilot projects.
- 20 companies raised $50,000 – $150,000, targeting early validation and customer acquisition.
- Another nine raised $215,000 – $400,000, while eight companies raised $750,000 – $1M for initial market testing.
This highlights a critical funding gap between micro-raises and growth-stage rounds.
The Thin Middle Class of African Fintech
The “middle” of the funding ladder is narrow. Only 24 companies raised $5.2M – $18M in 2025, bridging Series A to early Series B stages:
- MoneyHash: $5.2M
- M-Kopa: $6M
- Jumo: $7.5M
- Affinity Africa: $8M
- Six companies: $10M each
- ZeePay: $18M
These companies represent a thin middle class, capable of scaling operations but still far from late-stage growth capital.
Debt Financing on the Rise
Debt financing surpassed $1 billion for the first time in a decade, signalling that alternative instruments are becoming more accessible. However, debt favours revenue-generating, established companies. Pre-revenue and early-stage startups cannot access these funds, which may further concentrate capital at later stages.
Female Founders Face Persistent Barriers
Less than 10% of fintech funding went to companies with at least one female founder, a number that has remained stagnant for years. Early-stage funding challenges hit female founders hardest, as limited seed capital restricts access to follow-on Series A and B rounds.
New Geographic Sources of Capital
Investors from Japan and GCC countries are emerging as new sources for African fintech, diversifying beyond American and European venture capital. However, these investors predominantly write large late-stage checks, preferring proven business models.
While this inflow strengthens growth-stage capital, it does not solve early-stage funding shortages, leaving many startups stuck in the pre-seed or seed funding trap.
Conclusion
African fintechs remain a highly funded sector, but the concentration of capital, early-stage funding gaps, and limited access for female founders highlight structural challenges in the ecosystem. Without deliberate interventions to fund the bottom and middle rungs of the ladder, early-stage startups may struggle to scale, limiting Africa’s fintech innovation potential.
