Nigerian start-ups have ranked third in Africa for attracting investor funding in the first five months of 2025, securing over $162 million in capital. This is according to the latest report by Africa: The Big Deal, a platform that tracks equity, debt, and grant deals across African tech ecosystems.
The report shows that start-ups across the continent raised over $1 billion between January and May 2025. This is a notable improvement compared to the same period in 2024, when only $750 million was raised. The data also indicates that African start-ups collectively attracted $2.5 billion in funding between June 2024 and May 2025, the highest 12-month total since early last year.
By country, Egypt emerged at the top of the funding chart with more than $332 million, representing 31% of the total capital. South Africa followed with $273 million (26%), while Nigeria claimed the third spot with $162 million (15%). Kenya completed the top four with $132 million (12%). Together, these “Big Four” ecosystems accounted for 84% of all start-up funding in Africa during the period under review.
In terms of sectors, fintech once again dominated, attracting $484 million or 46% of total funding. Health tech followed with $149 million (14%), heavily influenced by a $100 million raise by South African firm hearX in April. Energy-focused start-ups took in $106 million (10%), reflecting ongoing investor interest in sustainable and off-grid power solutions across the continent.
The report noted that equity deals made up the bulk of the funding—77% or $810 million. Debt deals accounted for 13%, while grants came in at $24 million. There was also a notable corporate bond issuance worth $50 million by Egypt’s Tasaheel, a subsidiary of MNT-Halan, marking the country’s largest-ever private sector bond issuance.
One of the key highlights of the report is the improved pace of funding in 2025. According to Africa: The Big Deal co-founder, Max Giacomelli, it took African start-ups until mid-July in 2024 to cross the $1 billion funding milestone. In contrast, the same benchmark was reached by the end of May this year, putting 2025 ahead of 2024 by seven weeks. Although this year still trails the record-setting pace of 2022 and 2023—when $1 billion was raised in just seven weeks—it offers hope that Africa’s tech ecosystem is bouncing back from recent funding slowdowns.
Giacomelli said, “We’re now hoping this means the ecosystem is on track to at least top the 2024 final numbers, $2.2 billion in total.”
He also noted the growing buzz around Nigerian mobility start-up, Moove, which is rumoured to be in the process of raising a fresh $300 million round. If confirmed, the funding could propel Moove to unicorn status, making it one of the few African start-ups to achieve a valuation of $1 billion or more. Giacomelli hinted that the announcement may be a matter of when, not if.
In May alone, 36 African start-ups secured funding rounds of $100,000 or more. Although this figure is slightly lower than in previous months, the report states that the average deal size increased, with no fewer than seven companies raising over $10 million each. Egypt led this pack, followed by start-ups from the usual powerhouses—South Africa, Nigeria, and Kenya.
Despite the concentration of capital in a few markets, the report tracked at least one $100,000+ deal in 20 African countries, showing a broader regional spread of investment activity.
As the continent’s start-up landscape continues to grow, stakeholders say improved policy frameworks, digital infrastructure, and investor confidence are all playing a role in unlocking capital. Nigeria’s position as the third highest recipient of funding so far this year also reflects the country’s continued relevance in Africa’s technology and innovation space, especially in sectors like fintech, logistics, edtech, and mobility.
