African startups have raised more than $1 billion by May 2025, marking a significant milestone for the continent’s innovation economy.
Nigeria secured the third-highest funding on the continent, attracting $162 million in startup investments in the first five months of the year, according to data from Africa: The Big Deal, a platform tracking startup investments.
Egypt and South Africa led the pack with $332 million and $273 million, respectively, while Nigeria accounted for 15 percent of the total funds raised.
This milestone was announced on Wednesday, revealing a vibrant ecosystem accelerating faster than last year.
The Nigerian startup ecosystem is gaining momentum, with the fintech and mobility sectors leading. A standout example is Moove, a Nigerian mobility startup rumoured to be raising $300 million to reach unicorn status.
Max Giacomelli, co-founder of Africa: The Big Deal, noted, “It seems like it is now more a question of when Moove will announce this round, rather than if”.
African startup funding hits $1 billion milestone earlier than anticipated
The $1 billion funding mark was achieved roughly seven weeks earlier than in 2024, signalling a faster pace of investment on the continent. African startups raised $2.5 billion over the past 12 months (June 2024 to May 2025), the highest rolling total since early last year.
Fintech startups received roughly half the money, which amounted to $484 million. Health tech companies received 149 million dollars, while energy startups received 106 million.
There is a preponderance of equity financing, which accounts for 77 per cent of the deals, while debt and grants form smaller proportions.
Egypt leads the pack with 31 per cent of total funding, followed by South Africa (26 percent), Nigeria (15 percent), and Kenya (12 percent).
In May alone, 36 African startups raised $254 million, with Egypt securing six of the seven biggest deals, including a record $75 million proptech raised by Nawy.
This rapid growth highlights investors’ increasing confidence in African startups, particularly in Nigeria’s dynamic market.
The continent’s startup ecosystem is on an upward trajectory, with larger deals and more significant investments shaping its development.