African Startup Funding Plummets To $50m In March 2025

African startups faced a sharp decline in funding in March 2025, securing just $50 million—the lowest monthly total since late 2020, according to a report by “Africa: The Big Deal.”
The funding drop follows a strong start to the year, with January attracting nearly $300 million and February securing $119 million. The weak March performance dragged the total funding for Q1 2025 to $460 million, a five per cent decrease from the $486 million raised in the same period last year.
Kenya, Nigeria, and South Africa remained the leading investment destinations, each attracting approximately $100 million, representing 24 per cent, 24 per cent, and 22 percent of total funding, respectively. Egypt followed with $61 million (14 per cent), while Togo entered the top five due to Gozem’s $30 million Series B funding round.
Fintech continued to lead sector funding, securing nearly half (46 per cent) of total investments, with notable raises including LemFi’s $53 million and Naked’s $38 million. The energy sector accounted for 18 per cent of funding, while logistics and transportation secured 10 per cent.
The report highlights a stark gender disparity, with female-led startups receiving just $10 million (two per cent) of total Q1 funding. This figure was heavily influenced by a $6.2 million grant awarded to South African biotech firm Biologics. Excluding grants, female-led ventures secured only zero point seven per cent of the total.
Male-only founding teams dominated, securing 79 percent of investments, while female-only teams received just one per cent. Mixed-gender founding teams accounted for 20 per cent, showing slight progress compared to previous quarters.
Despite the funding dip, the number of startups raising at least $1 million in Q1 remained stable at fifty-two, aligning with the 2023–2024 average. “Q1 wasn’t the best quarter overall, but it’s not all doom and gloom if we zoom out and look at longer-term trends,” the report noted.
The sluggish Q1 performance raises concerns about whether African startups can regain momentum in 2025 after a tough 2024, which saw total funding reach $2.2 billion—a 25 per cent decline from the $2.9 billion raised in 2023.
The 2024 funding total was driven by two mega-deals from Nigeria’s Moniepoint and South Africa’s Tyme Group. However, with fewer large deals on the horizon, fintech’s dominance and overall investment activity in 2025 remain uncertain. In 2024, 188 ventures raised at least $1 million, 10 per cent fewer than in 2023, signaling a broader funding slowdown across the continent.