AFRICAN TECH SNAPSHOT: AUGUST 2025

This edition presents insights on the amount of funds raised, top deals, top investments destinations and top sectors by funding for startups in August 2025. The month saw a sharp pullback in activity compared with July: funding and deal counts fell 83.2% and 42.1%, respectively. This could be attributed to seasonal trends, global headwinds and shift in investment focus. 

Egypt was the top investment destination, followed by Kenya and Nigeria, while fintech, agritech, energy, health care and logistics, were the leading sectors. Equity deals dominated the month’s activity, reflecting investor preference for long-term growth capital over debt. This equity-heavy mix is positive for August’s figures, as it signals strong confidence in the future potential of African startups even in a quieter funding cycle.

Amount Fundraised in August 2025

• Total Amount of Funding - $92.8 million (↓83.2% from July 2025)
• Total Number of Deals - 33 (↓42.1% from July 2025)

Top Five(5) Deals

• The top five startups make up 54.8% of the total funding in August 2025 
• Nigeria’s Koolboks raised the most funds, amounting to $11 million
• During the month, five startups exited through merger and acquisition (M&A): 
• ikhokha (South Africa) 
• Be Girl (Mozambique)
• Rate My Service (Kenya)
• Koto.ci (Cote d’Ivoire)
• Sorted Chale (Ghana)

Top Five(5) Investment Destination by Deal Size ($’million) 

• The top 5 countries together accounted for 90.8% of the total funding in August 2025.
• Egypt had the highest percentage of investment by deal size (30.1%), followed closely by Kenya (22.8%) and Nigeria (21.7%).  

Top Five(5) Sectors by Funding ($’million)

• The Fintech sector received the highest percent (28.4%) of the total funding, a significant difference from the No2 spot (Agriculture and food) receiving 20.3% of total funding.

The general trend shows a decline in investment deals in August. This could be attributed to a number of reasons including:

• Seasonal trend: August typically sees fewer deal announcements in Africa as many global investors pause during the summer, leading to slower activity across venture markets. 
• Global headwinds: Rising U.S. tariffs, tighter monetary conditions, and persistent inflation concerns have dampened investor sentiment, reducing the flow of international capital into African startups.