Feb 2025 - Reasons to remain optimistic

$119m in funding were announced by start-ups in Africa last month

So, February 2025 numbers… If you want to focus on the negatives, you will say that the number of $100k+ deals announced (38) is lower than the average of the previous twelve months, and than previous Februarys since 2021. You might also be tempted to add that the amount raised in February ($119m) is again lower than the average of the previous twelve months, and than previous Februarys since 2019. But if you want to look on the bright side, all you have to do is zoom out a little…

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… and you will realise that the amount raised in 2025 so far ($408m) is higher than the amount raised in the same period last year ($302m) and just above 2021 numbers ($400m). And while the number of $100k+ deals overall announced in 2025 so far doesn’t compare favourably to the previous years, if we look at $1m+ deals specifically, we see that the 42 $1m+ deals announced since the beginning of the year are aligned with both 2023 (42) and 2024 (43) numbers, and significantly higher than pre-heatwave levels (between 20 and 31 in 2019-2021).

Who raised the most in February 2025? The seven largest deals (representing 80% of the total) were all either Fintech or Logistics & Transport deals, in line with 2024 trends. The majority of them (again, not really a surprise) were in one of the ‘Big Four’. However, the largest deal of all was announced by Togo-born start-up Gozem which raised $30m ($15m equity, $15m debt). Other notable announcements include Khazna’s (Egypt, Fintech)’s $16m raise to expand in KSA; Hakki Africa’s ~$13m raise (Kenya, Fintech x Mobility); Raenest’s $11m Series A (Nigeria, Fintech); Tether's (Nigeria, Fintech) $3m seed round + $7m debt; Affinity’s $8m round (Ghana, Fintech); and Taager’s ~$7m pre-Series B (Egypt, Logistics & Transport).

We’ll stop here, but there’s more coming of course. You can find all the underlying data in our database which now has 3.7k deals dating back to 2019, worth $17b ($19.5b if we include priced exits). And don’t forget to claim your discount here. I also loved your feedback on last week’s post, in particular those who suggested comparing start-up funding to GDP (PPP) per capita. I’ll look into this whenever I have a couple hours to spare. Hasta luego. Max