African startups recorded a notable surge in venture funding in February, raising a combined $272 million through equity, debt, and grants.

This represents a 56.3 percent increase from the $174 million secured in January and a striking 128.5 percent rise compared with the $119 million raised in February 2025.

The figure also surpassed the 12-month average of $254 million by 7 percent, signaling a strong rebound in startup investment activity.

Year-to-date funding now stands at $446 million, nearly 7 percent higher than the amount raised during the same period in 2025.

Analysts suggest 2026 could maintain this lead, particularly as March 2025 recorded one of the lowest venture funding months on record.

Equity and debt financing dominated February’s capital inflow.

Equity investments accounted for 54 percent of the total, amounting to $146.9 million, while debt financing contributed 45 percent, or $122.4 million.

Grants represented the remaining one percent, approximately $2.7 million.

The funding momentum was supported by 40 African startups that each secured at least $100,000, reflecting continued investor confidence across multiple sectors on the continent.

Major Deals Drive February Funding Surge

Benin-based e-mobility startup Spiro led the funding charts after closing a $57 million debt round backed by Afreximbank, alongside new investors Nithio and the Africa Go Green Fund.

The financing brings Spiro’s total capital raised to $157 million within four months.

The company plans to expand its battery-swap station network and deploy more electric motorcycles across Africa.

Spiro currently operates in Kenya, Uganda, Rwanda, Nigeria, Benin, and Togo, while also testing services in Cameroon and Tanzania.

Egypt’s e-commerce startup Breadfast secured the second-largest deal, raising $50 million in a pre-Series C round from investors including Mubadala Investment Company, a Saudi billionaire family, SBI Investment Co., and Olayan Financing Company.

The funding moves Breadfast closer to its planned Initial Public Offering (IPO).

The company intends to use the new capital to strengthen infrastructure, scale logistics operations, and explore expansion into additional African markets ahead of a larger Series C round expected in the first half of 2026.