In the first half of 2025, Africa’s startup funding landscape remained heavily influenced by the continent’s Big Four—South Africa, Egypt, Kenya, and Nigeria, which collectively accounted for a significant amount of the total capital raised.

According to a report by Africa: The Big Deal, the funds raised in the first half of the year by these regions, marked a 78% increase from the $800 million recorded in H1 2024.

While their share of startups raising at least $100,000 was slightly lower at 67%, they dominated the $1 million+ category, with 84 out of 106 qualifying startups, or 79%, coming from these four countries.

South Africa led the continent in total funding with $344 million, marking its strongest half-year since H1 2023. Although it did not have the highest number of startups raising over $100,000 (37 deals), it topped the $1 million+ category with 26 ventures securing significant rounds.

The standout deals included South African health tech pioneer hearX, which raised $100 million through a merger with Eargo and a subsequent investment from Patient Square Capital.

Also, Stitch, a fintech company raised $55 million in Series B funding. This brings the company’s total funding to $107 million since its launch in 2021. The funding round was led by QED Investors and included participation from Flourish Ventures, Norrsken22, Glynn Capital, and angel investor Trevor Noah. The funds, according to the company, will be used to expand its in-person payment offerings, strengthen its online payment suite, and facilitate its entry into card acquiring.

On the other hand, Naked an Insurtech startup, raised a $38 million Series B2 round. The round was led by Blue Orchard and included participation from existing investors like Hollard, Yellowwoods, the IFC, and DEG. The funding will be used to expand Naked’s AI-powered digital insurance platform, enhance product development, and further its market reach. 

Egypt closely followed with $339 million, also recording its best half-year since H1 2023. A total of 42 startups secured at least $100,000, while 21 of them raised $1 million or more, matching Nigeria in that bracket.

Egypt’s top three deals—collectively representing half of the country’s total funding—were Tasaheel’s $50 million bond issue (a subsidiary of MNT-Halan), Bokra’s $59 million sukuk raise, and Nawy’s $75 million raise (a combination of $52 million Series A and debt financing), which stands as the largest-ever proptech deal on the continent.

Kenya reported $227 million in total funding, its lowest half-year total since H1 2021. The country ranked #4 in both the number of startups raising at least $100,000 (30) and those securing $1 million or more (16). The two largest Kenyan deals came from the energy sector, with Burn Manufacturing raising $85 million and PowerGen securing $55 million.

Despite its historic dominance, Nigeria posted only $176 million in H1 2025, its lowest half-year funding performance since H2 2020. However, the country matched Egypt in the number of startups raising $100,000+ (42) and tied again for second place in the $1 million+ category (21).

Nigeria’s largest deals included LemFi, a payment and remittance firm which raised $53 million in Series B, led by Highland Europe with participation from previous investors Left Lane Capital, Palm Drive Capital, Endeavor Catalyst and Y-Combinator. The new round brings LemFi’s total capital raised to $85 million to date. Also, OmniRetail, Nigerian retail technology company, raised a $20 million Series A, and Arnergy (energy) with $18 million in Series B funding.

The data reinforces the dominance of the Big Four in Africa’s venture capital ecosystem while highlighting shifting dynamics, with South Africa and Egypt leading in capital raised, and Nigeria now more active in deal volume than deal size.