In April 2025, African startups raised $343 million in 39 publicly reported deals, which represents a significant rebound from the slow funding in the preceding months.
Due to a combination of high-profile transactions, more debt financing, and a wider range of industries, this number places April as the second-highest April funding month ever.
In April, fintech dominated African startup funding once more. Significant investment was drawn to businesses involved in remittances, digital banking, and payments.
Fintech’s ongoing appeal to investors is demonstrated by the $55 million raised in a follow-on round by South African API payments startup Stitch and the $59 million raised by Egypt’s Islamic finance platform Bokra through a sukuk issuance.
The $100 million merger agreement between the US-based Eargo and the South African hearing care company hearX caused an unanticipated boom in the healthtech industry.
The deal is the continent’s first big deal of the year and demonstrates Africa’s increasing significance in the innovation of global healthcare.
Retail technology and e-commerce were still active; Nigeria’s OmniRetail raised $20 million to expand its business-to-business marketplace for small retailers. The transaction shows that platforms that digitise Africa’s sizable informal retail sector continue to attract investor interest.
Mobility and clean energy made progress as well. Kofa, a company based in Ghana, raised $8.1 million to extend its network of electric motorcycle battery swappers.
The funding round, which consists of grants, debt, and equity, demonstrates the growing interest in startups with a climate focus. No significant rounds were announced for agritech and edtech during the month.
Types of Funding
The funding mix for April showed increasing diversification which include:
- Equity Funding: Startups like Stitch, OmniRetail, and Djamo raised growth capital from institutional investors, accounting for the majority of the $343 million raised through equity rounds.
- Debt Financing: Bokra’s $59 million sukuk and Zeepay’s $18 million in secured debt were the main contributors to debt. These rounds demonstrate how established startups are using non-dilutive funding to support growth.
- Grants: Small but essential grant capital was provided by development finance organisations and accelerators. Seven health-focused startups throughout the continent received up to $225,000 each from the Investing in Innovation (i3) program.
Key Rounds of Funding
The following are the key funding rounds obtained by some African startups:
- hearX (South Africa): Through a strategic merger with the US-based hearing aid manufacturer Eargo, hearX (South Africa) was able to secure $100 million. The agreement allows hearX to grow globally while providing hearing care that meets Africans’ needs.
- Bokra (Egypt): Only a year after its seed round, Bokra raised $59 million in a unique sukuk transaction. The money will be used by the Islamic fintech to expand Sharia-compliant financial services throughout the Middle East and North Africa.
- Stitch (South Africa): To extend its payment infrastructure throughout African markets, the company closed a $55 million Series B round from current investors.
- OmniRetail (Nigeria): To increase its footprint in Nigeria and enter Ghana and Côte d’Ivoire, OmniRetail obtained $20 million.
- Zeepay (Ghana): To grow its remittance and mobile money services, Zeepay raised $18 million in debt.
- Kofa (Ghana): The company raised $8.1 million through a blended round to expand its clean energy and mobility solutions in West and East Africa.