Is fintech funding in Africa drying up — or just shifting gears?
In August 2025, African startups raised $93M and none of the five biggest deals came from the fintech sector.
For a sector that has long defined Africa’s startup boom, fintech is suddenly facing an awkward question: Is the money drying up?
August seemed to confirm the doubts as startups on the continent raised just $93 million across 33 deals (via Africa: The Big Deal), one of the slowest months so far in 2025. None of the month’s five biggest rounds came from the fintech sector. Instead, capital flowed into healthcare (Hewatele’s $10.5m), foodtech (Breadfast’s $10m, Chowdeck’s $9m), energy/mobility (Ampersand’s round, likely eight digits), and Egypt’s valU ($9m securitised bond).
It was a rare moment when fintech wasn’t setting the pace, and it fueled the perception of a slowdown. But the picture shifts when you zoom out.
By the end of August, startups had already pulled in $2 billion in 2025, setting the ecosystem on track for its first year of growth since 2022. Fintech remains at the center of that recovery, with $640 million raised in the first half of the year, close to half of all capital deployed. On a rolling 12-month basis, its share rises above 50%, near historic highs.
So why does the monthly snapshot look so different from the broader trend?
Kelechi Edeh
The rise of debt over equity
Part of the answer lies in how fintechs are funding themselves. For years, the story was about venture capital rounds—Series As and Bs that signalled fast growth. This year, debt has taken over.
In July, nearly 90% of the $550 million raised came from loans, bonds, and structured finance. Senegal’s Wave secured $137 million in credit, Egypt’s MNT-Halan raised $50 million through bonds, while platforms like Bokra and valU turned to Islamic sukuks and securitised instruments.
These deals don’t make as many headlines as traditional equity, but they show fintechs shifting towards models that look more like established financial institutions than early-stage startups.
Bigger cheques, fewer recipients
Another effect is the more concentrated ecosystem we're now seeing. The median fintech round this year is $1.7 million, compared to just $500,000 for non-fintech startups. Nearly half of all $10M+ raises in 2025 have gone to fintech companies. That means capital is still flowing, but toward fewer players with balance sheets strong enough to secure large facilities.
For growth-stage fintechs, the environment is supportive. For younger companies, the bar to attract investment is higher, as investors show less appetite for smaller equity bets.
The funding story also varies sharply by market. Nigeria, Egypt, and South Africa continue to lean heavily on fintech, where it often accounts for more than half of startup capital. Kenya, however, is different. With mobile money penetration already above 95%, new investment has shifted towards sectors like energy, healthcare, and logistics, where growth prospects look stronger.
Kelechi Edeh
Put together, these shifts complicate the narrative. On the surface, fintech may appear to be losing momentum when equity headlines slow. In reality, capital is still abundant, but flowing through new channels, concentrated among fewer players, and shaped by market context.
Rather than drying up, fintech funding in Africa is changing. It is less about venture capital blitzscaling and more about financial sustainability, less about chasing the next big app and more about building institutions. That evolution may leave some younger startups struggling to break through, but it also signals a maturing sector that is unlikely to fade anytime soon.
