CHART: African startup funding bounced back in April 2025 — but will it last?
Compared to the same time last year, funding is up 4.5x, a sharp reversal of fortune that suggests investor confidence is returning, albeit cautiously.
After a bleak March 2025, Africa’s startup funding scene bounced back in April and did so in style.
Startups on the continent raised a total of $343 million last month through $100k+ deals, according to Africa: The Big Deal. That’s not just a rebound from the $50 million recorded in March 2025 (one of the lowest months since 2020); it’s also the second-best April ever, surpassed only by the boom of April 2022.
Compared to the same time last year, funding is up 4.5x, a sharp reversal of fortune that suggests investor confidence is returning, albeit cautiously. And it’s not just the amount raised that matters. It’s how.
April saw three large standout deals that helped lift the total: South Africa’s healthtech startup, hearX raised $100 million via a merger with U.S.-based Eargo—the continent’s first nine-figure deal this year. Islamic fintech Bokra pulled off a $59 million sukuk issuance in Egypt, marking a major leap from its $4.6 million pre-seed round last year. And Stitch, a South African payments infrastructure startup, secured $55 million to fuel its pan-African growth.
Kelechi Edeh
Beyond those, the month also recorded at least four notable exits, including Nigeria’s Bankly, South Africa's Peach Payments, and Egypt’s ADVA, hinting at some maturity in the ecosystem even as new capital flows in.
Zooming out, the broader 2025 picture is looking solid. African startups have raised $801 million between January and April, a 43% jump from the $563 million raised during the same period last year. More deals are happening too—163 so far this year compared to 147 by this time in 2024—with over 225 unique investors getting involved.
If the momentum continues, 2025 might just avoid the funding freeze many feared. Add in the $1.3 billion in new VC fund commitments made since early 2024, and it feels like the flywheel is starting to turn again.
It’s too soon to declare a full recovery. But for an ecosystem where cash flow has often been life or death, April gave the continent a much-needed jolt, not just in volume, but in optimism.
Kelechi Edeh
