African startups raised a total of $343 million in April 2025 across 39 publicly disclosed deals, marking a sharp recovery from the sluggish funding seen in previous months. This figure makes April the second-highest April funding month on record, driven by a combination of large-ticket deals, increased debt financing, and expanded sector diversity.
Sector Breakdown
Fintech led the way again in April, continuing its dominance in African startup funding. Companies in payments, digital banking, and remittances attracted substantial capital. South African API payments startup Stitch raised $55 million in a follow-on round, while Egypt’s Islamic finance platform Bokra secured $59 million via a sukuk issuance, underscoring fintech’s enduring investor appeal.
Healthtech saw an unexpected surge, thanks to a $100 million merger deal between South African hearing care company hearX and US-based Eargo. The transaction marks the continent’s first mega-deal of the year and highlights Africa’s growing relevance in global healthcare innovation.
E-commerce and Retail Tech remained active, with Nigeria’s OmniRetail raising $20 million to scale its B2B marketplace for small retailers. The deal reflects ongoing investor interest in platforms digitizing Africa’s vast informal retail sector.
Clean Energy and Mobility also made strides. Ghana-based Kofa raised $8.1 million to expand its battery-swapping network for electric motorcycles. The round, composed of equity, debt, and grants, highlights rising interest in climate-focused startups.
Other sectors like agritech and edtech were less prominent, with no major rounds announced during the month.
Funding Types
April’s funding mix demonstrated growing diversification:
- Equity Funding: The majority of the $343 million came from equity rounds, with startups like Stitch, OmniRetail, and Djamo raising growth capital from institutional investors.
- Debt Financing: Debt played a prominent role, led by Bokra’s $59 million sukuk and Zeepay’s $18 million in secured debt. These rounds highlight how mature startups are turning to non-dilutive capital to fuel scale.
- Grants: Development finance institutions and accelerators contributed modest but vital grant capital. The Investing in Innovation (i3) program awarded up to $225,000 each to seven health-focused startups across the continent.
Notable Funding Rounds
- hearX (South Africa): Secured $100 million through a strategic merger with Eargo, a US-based hearing aid provider. The deal enables hearX to expand globally while addressing hearing care needs in Africa.
- Bokra (Egypt): Raised $59 million in a rare sukuk deal just a year after its seed round. The Islamic fintech plans to use the capital to scale Sharia-compliant financial services across North Africa and the Middle East.
- Stitch (South Africa): Closed a $55 million Series B round from existing investors to expand its payment infrastructure across African markets.
- OmniRetail (Nigeria): Secured $20 million to deepen its presence in Nigeria and expand into Ghana and Côte d’Ivoire.
- Zeepay (Ghana): Raised $18 million in debt to expand its mobile money and remittance services.
- Kofa (Ghana): Raised $8.1 million through a blended round to grow its clean energy and mobility solutions in West and East Africa.
Market Trends
Investor Confidence Returning: April’s numbers reflect renewed optimism after a slow first quarter. With $803 million raised year-to-date, the market appears to be recovering from the global VC cooldown experienced in 2023 and early 2024.
Geographic Shifts: South Africa and Egypt led the month’s activity, while traditional powerhouses like Nigeria and Kenya took a backseat. Ghana also featured prominently, showing strong growth potential.
Diversified Capital Sources: More startups are leveraging alternative capital, including venture debt, sukuks, and grant funding. This shift suggests founders are prioritizing sustainable growth while reducing dilution.
Exit Momentum: April also saw several acquisitions, including Nigeria’s Bankly and Senegal’s PayDunya, hinting at growing maturity in the ecosystem and improved investor exit opportunities.
Outlook
April’s performance offers a reason for cautious optimism. While the market is not yet back to 2021’s frenzied levels, the rise in large deals, alternative funding mechanisms, and sector diversification signals that Africa’s startup ecosystem remains resilient and adaptive. If this momentum carries into the second quarter, 2025 could become a breakout year for the continent’s innovators.
