African companies raised over US$800 million in the third quarter of this year, marking a 21% increase compared to the same quarter in 2024. This growth was driven primarily by growth-stage funding, despite a decline in the number of deals.
This uptick in funding, following several quarters of decline since the 2021 funding bubble, reinforces predictions highlighted in our recently released Africa Venture Pulse Report, which indicates that 2025 funding is on track to surpass 2024 totals.
Since peaking in 2022, overall deal activities, particularly deals between US$100 000 and US$1m, have been on a steady decline.
In contrast, very early-stage deals are US$100 000 and growth-stage deals are between US$1m and US$20m, although following a similar downward trend since 2022, they are now showing early signs of recovery. By contrast, later-stage rounds (US$50m) have remained consistently low, making up less than 5% of all activity.
This trend reflects a maturing ecosystem, characterised by continuing small, experimental bets alongside increasing capital consolidation around proven growth ventures. Such capital concentration signals growing investor confidence in companies that demonstrate clear traction and scalability. However, it also highlights the persistent challenge of supporting ventures between US$100 000 and US$1m, where companies struggle to secure adequate funding to move beyond early validation and into scalable operations.
Three Kenyan-headquartered cleantech companies captured more than 60% of the funding total for the third quarter. Their outsized rounds propelled cleantech to the top-funded sector by volume this quarter.
With 45 deals, the agricultural sector recorded the most deals in the quarter despite capturing less than 5% of overall funding, reflecting a high volume of smaller investments. This sector continues to receive low-ticket funding and grant-based support rather than major commercial investments.
Other top sectors by deal count include education, cleantech, and software. Explore our intelligence platform to track funding trends across these sectors.
With US$548 million raised, companies operating in Kenya received the highest funding overall amongst the big four in Q3 2025. This is a sharp contrast to the US$45 million Kenyan companies raised in the same quarter last year.
Amongst the big four, South Africa followed closely with US$140 million, while Egyptian and Nigerian startups raised US$41 million and US$77 million, respectively. Notably, Morocco secured the fifth-largest funding, driven by Ora Technology, which raised US$7.5 million.
Seventeen acquisitions were recorded last quarter. This is in contrast with eight acquisitions recorded for the same period last year. Out of the 16 acquisitions made, only two disclosed their values: Nedbank’s US$93 million acquisition of iKhokha and Lesaka’s US$61.4 million purchase of Bank Zero. With 44 acquisitions recorded so far this year, 2025 is on track to have the highest number of acquisitions recorded on the continent.
Of the 17 acquisitions recorded in Q3, fintech companies dominate with seven acquisitions, while software-as-a-service companies come second with three acquisitions. This also reflects the broader trend of fintech dominating acquisitions on the continent. By region, South Africa dominated with seven acquisitions recorded in the quarter. –www.briter.co
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Funds raised by African companies increased by 21% in the third quarter.
