Venture funding for African startups experienced a significant downturn in April, with ventures across the continent collectively raising a mere $110 million. This figure, as reported by the African venture funding analytics platform Africa the Big Deal, starkly contrasts with the previous 12-month average of $275 million, marking a substantial decline in investment activity. The April total represents a 27.1 percent drop from March’s $151 million and stands as the lowest monthly fundraise recorded so far this year, trailing behind February's $272 million and January's $174 million.

Indeed, the $110 million secured in April is the lowest sum over the last 12 months, spanning from May 2025 to April 2026, and also the lowest on record since March 2025, when startups raised $50 million. This period is considered one of the poorest on record for African venture funding, with the monthly decline surpassing even the levels observed during the so-called 'funding winter'.

Interestingly, despite the overall dip in capital, more startups (32) announced funding rounds in April, representing a 45.5 percent increase compared to the 22 startups that raised in March. This number of funded startups is higher than any other month this year, aside from February, which saw 40 startups announce funding. This trend is noteworthy, as it occurs amidst an overwhelming decline in the number of early-stage startups securing investments, with only 130 early-stage ventures announcing funding between $100,000 and $500,000 in equity over the past 12 months—a level not seen since at least 2021.

As has been a consistent pattern this year, April’s venture funding was predominantly driven by a few larger rounds. Egyptian consumer credit startup, Lucky, led the month’s fundraising efforts by securing $23 million in Series B funding. This round, comprising both equity and debt financing, will enable Lucky to expand its operations across North Africa and develop new banking services. Key investors in this round included existing and new participants such as Disruptech Ventures, DPI Venture Capital through the Nclude fund, Suez Canal Bank, and investment firm OneStop, with Mohamed Farouk, chairman of OneStop, joining Lucky’s board as the new chairman.

Togo’s Gozem also featured prominently, raising $24.5 million in debt financing from the International Finance Corporation (IFC). This investment is earmarked for scaling its vehicle financing arm, Gozem Financing, and comes roughly a year after the company successfully closed a $30 million Series B round. The funds are designated exclusively for fleet expansion across four target markets—Benin, Cameroon, the Republic of Congo, and Togo—over a three-year period from 2026 to 2028.

Next, Victory Farms, a tilapia-producing agritech company operating in Kenya and Rwanda, secured $15 million in debt financing. This follow-on investment from specialist African agriculture investor, AgDevCo, will support the startup’s next phase of growth, including the establishment of multiple new farming sites in both Kenya and Rwanda.

Rounding out the significant deals, Ethiopian electric mobility startup, Dodai, raised $13 million in Series A financing, structured with $8 million in equity and $5 million in debt. This round was backed by British International Investment and a consortium of Japanese investors, including Value Chain Innovation Fund, UTokyo Innovation Platform Co., Ltd., Nagase & Co., Ltd., Persistent ACV Fund, For Seasons, CBC Co., Ltd., and Inclusion Japan. Dodai specializes in assembling electric motorcycles locally at its Addis Ababa facility and integrating them into a proprietary battery-swapping network, allowing riders to quickly exchange depleted batteries for fully charged ones. This investment highlights a growing international interest in Africa’s emerging e-mobility infrastructure.