African Startups Cross $2 Billion in Funding as 2025 Brings a Cautious Outlook

African Startup Funding Surpasses $2 Billion Amid Changing Market Trends

African startup funding reached a significant milestone in 2024, exceeding $2 billion and returning to levels seen before the global pandemic. However, the funding landscape has evolved, with investors prioritizing profitability and sustainable business models. As 2025 unfolds, industry experts predict a continuation of the cautious investment trends seen over the past two years.

One major shift in the ecosystem has been a decline in large funding rounds, reflecting the global tightening of venture capital after the surge witnessed in 2020-2021. As a result, investors—both local and international—are now more focused on backing startups with clear paths to financial sustainability.

This change has had significant consequences for well-funded startups that failed to meet these new standards. Several high-profile closures marked 2024, including Copia, a mobile commerce platform, and Gro Intelligence, an agricultural data analytics firm. Notably, both companies had secured over $100 million in funding, with Gro Intelligence once valued at $850 million.

Turbulence in African Startup Funding: Closures and Strategic Pivots

The challenges in African startup funding were not limited to early-stage companies. In previous years, most failures occurred at the pre-seed and Series A levels. However, 2023 and 2024 saw late-stage and growth-stage companies also struggling to survive.

Among the casualties were Ghanaian fintech Dash and Nigerian biotech firm 54gene, both of which shut down despite raising substantial capital. While some companies collapsed, others adapted by restructuring their operations.

For instance, B2B e-commerce leaders Wasoko and MaxAB opted for a strategic merger instead of closure. By joining forces, they aimed to optimize cash flow and leverage their collective industry experience to navigate the uncertain economic environment.

Amid these challenges, a few African startups demonstrated resilience and continued to thrive. Moniepoint, Moove, and TymeBank stood out by attracting fresh investments from major global players such as Uber, Google, and Nubank. Their strong business models, profitability, and sustained growth made them attractive to investors despite the broader funding slowdown.

Africa’s Unicorns: The Billion-Dollar Success Stories

Even in a challenging market, some African startups have maintained billion-dollar valuations, reinforcing the continent’s potential in the global tech space.

1. Flutterwave ($3 Billion, 2021)

Founded in 2018, Flutterwave has established itself as a major player in digital payments across Africa. The Nigerian fintech has secured over $475 million in funding, including a $250 million Series D. Backers include Tiger Global, Avenir Growth, and DST Global.

2. OPay ($2 Billion, 2021)

A subsidiary of Opera, OPay provides mobile payments, lending, and other financial services. Since its inception in 2018, the fintech has raised over $500 million, with a $400 million Series C backed by SoftBank Vision Fund 2, Sequoia Capital China, and Redpoint China.

3. Wave ($1.7 Billion, 2021)

Senegal-based Wave focuses on low-cost mobile banking solutions for Francophone Africa. Originally a spin-off of Sendwave, the startup raised $200 million in a Series A round with investors such as Stripe, Sequoia Heritage, and Ribbit Capital.

4. Andela ($1.5 Billion, 2021)

Founded in 2014, Andela is a global platform that connects skilled tech professionals with companies. The startup has raised over $380 million, with a notable $200 million Series D investment from SoftBank, the Chan Zuckerberg Initiative, and Spark Capital.

5. TymeBank ($1.5 Billion, 2024)

TymeBank, a South African digital bank, focuses on providing accessible financial services to underserved populations. It secured $250 million in a Series D round led by Nubank, with additional backing from Tencent and African Rainbow Capital.

6. Chipper Cash ($1.25 Billion, 2021)

Chipper Cash offers cross-border payments, card services, and investment products across Africa. It has raised over $300 million from investors including FTX, Ribbit Capital, and Bezos Expeditions.

7. Interswitch ($1 Billion, 2019)

Established in 2002, Interswitch is a leading provider of digital payment solutions. The Nigerian fintech has secured over $300 million in funding, including a $200 million Visa-led round.

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8. MNT-Halan ($1 Billion, 2023)

Egyptian fintech MNT-Halan provides digital lending, payments, and e-commerce services. The company has raised more than $500 million, attracting investors such as Chimera Investments and Apis Growth Fund II.

9. Moniepoint ($1 Billion, 2024)

Founded in 2015, Moniepoint delivers financial services, digital banking, and business tools to African enterprises. The fintech secured $110 million in Series C funding, backed by QED, Google’s Africa Investment Fund, and Development Partners International.

African Soonicorns: The Rising Contenders

Several African startups are on track to achieve unicorn status in the near future, based on their recent valuations.

1. PalmPay ($800M–$900M)

This Nigerian fintech, launched in 2019, provides mobile payments and credit services. It has raised $140 million, with investors including Transsion Holdings and AfricInvest.

2. Moove ($750M)

A mobility fintech that offers vehicle financing for gig workers, Moove operates across Africa, the Middle East, and Asia. The company has raised over $409 million, with Uber leading its latest $100 million Series B round.

3. Yassir ($600M–$800M)

Algeria’s Yassir runs a super app offering ride-hailing, food delivery, and financial services. It has secured nearly $200 million from BOND, Y Combinator, and Stanford Alumni Ventures.

4. Kuda ($500M)

A Nigerian digital bank, Kuda provides banking and lending services. It has raised $90 million from Target Global and Valar Ventures.

5. Wasoko/MaxAB ($500M)

Following their merger, these B2B e-commerce startups collectively raised nearly $240 million and were valued at around $500 million.

6. Clickatell ($500M)

A chat commerce company enabling businesses to interact with customers via SMS and WhatsApp, Clickatell has raised over $100 million.

7. M-KOPA ($500M–$600M)

This Kenyan fintech provides digital financial services and asset financing. It has raised over $500 million from investors such as Sumitomo and Standard Bank.

8. Yoco ($400M–$500M)

A South African fintech offering payment solutions for small businesses, Yoco has secured $107 million in funding.

9. Onafriq ($300M–$500M)

Formerly MFS Africa, Onafriq operates Africa’s largest digital payments network, raising over $300 million.

The Future of African Startup Funding

The evolving landscape of African startup funding highlights both opportunities and challenges. While investors are becoming more selective, companies with strong business models continue to attract capital. The continent’s unicorns and soonicorns reflect Africa’s resilience and innovation, shaping the future of its tech ecosystem.

As 2025 progresses, startups that prioritize sustainability and profitability will be best positioned to navigate the changing venture capital environment.