Africa’s startup ecosystem experienced a notable slowdown in December 2025, as investor caution weighed on overall funding volumes despite a surge in deal activity. Startups across the continent raised $349.1 million through 75 transactions, a sharp decline from November’s IPO-driven highs.

Funding concentration intensified during the month, with the top 10 startups securing $321.5 million, representing more than 92% of total capital deployed. Meanwhile, the remaining 65 startups collectively raised just $27.6 million, underscoring the widening divide between late-stage mega rounds and smaller early-stage deals.

December vs November 2025: A Sharp Reset

December marked a clear pullback from November 2025, when African startups attracted $589.9 million across 38 deals, largely fuelled by public market activity. While the number of deals nearly doubled in December, total funding dropped significantly, pointing to smaller average cheque sizes.

Month-on-month highlights:

• Total capital raised: Down $240.8 million (-40.8%)
• Top 10 deal value: Down $251.5 million (-43.9%)
• Deal volume: Increased from 38 to 75 deals

The contrast highlights a shift away from IPO-led momentum toward a more cautious, selective investment environment.

Largest Startup Deals in December 2025

Despite the broader slowdown, several sizeable transactions demonstrated continued investor confidence in established, scalable business models.

M-Kopa dominated December funding with a $166 million Series F round, accounting for more than half of all capital raised. The company continues to expand access to consumer assets and digital financial services for low-income households.

Sun King raised $40 million in equity funding from Lightrock to accelerate the rollout of off-grid solar solutions across Africa and Asia.

ValU secured $23 million via a bond issuance, its 20th securitised transaction under a new EGP 10 billion programme arranged by EFG Hermes.

Nawah Scientific closed a $23 million Series A round, combining equity and debt to support laboratory expansion and R&D growth across Africa and Europe.

Capitec Bank acquired fintech platform Walletdoc for $23.5 million, strengthening its digital payments and financial inclusion strategy.

Revibe raised $17 million in Series A funding led by Partech, reflecting growing interest in circular economy ventures.

Breadfast raised $13 million to enhance logistics capabilities and upgrade its technology infrastructure.

Jumo secured $7.5 million in debt financing from BlueOrchard to scale its asset-backed securitization model.

Völz raised 600 million dinars ($4.5 million) in a domestically led round, marking the first successful exit for the Algerian Startup Fund.

Kalispot, backed by 500 Global, completed the top 10 with a $4 million blended debt-and-equity raise to expand its interoperable ATM infrastructure across African markets.

Regional Funding Distribution

Eastern Africa emerged as the leading destination for startup capital in December, largely driven by mega rounds in Kenya.

• Eastern Africa: $208.1 million (64.73%)
• Northern Africa: $84.4 million (26.25%)
• Southern Africa: $41.1 million (12.78%)
• Western Africa: $15.5 million (4.82%)

This represents a temporary shift from November, when Southern Africa benefited from IPO-related inflows.

Country-Level Funding Leaders

Capital allocation was similarly concentrated at the country level:

• Kenya: $206.7 million (64.29%)
• Egypt: $77.2 million (24.01%)
• South Africa: $40.9 million (12.72%)
• Ghana: $5.7 million (1.77%)
• Nigeria: $4.7 million (1.46%)
• Algeria: $4.5 million (1.40%)
• Senegal: $4 million (1.24%)

Kenya’s lead was driven overwhelmingly by M-Kopa’s mega round, while Egypt stood out for the breadth of sectors funded, including fintech, healthcare, agrifood, and sustainability-focused startups.

Outlook: A Pause, Not a Downturn

December 2025 signals a temporary cooling rather than a structural decline in African startup funding. Although total capital deployed fell sharply from November’s peak, investor interest remained robust in sectors such as fintech, energy access, healthcare, and core infrastructure.

As early-stage deal flow rebounds and investors continue to back market leaders, the data points to a potentially more balanced and resilient funding environment as Africa’s startup ecosystem enters 2026.