African startups successfully raised a total of $254 million in May 2025, marking a notable month for the continent’s burgeoning tech ecosystem with Egypt emerging as the dominant force in attracting capital.
While slightly lower than April’s figures, the May performance solidifies a strong year-to-date for African tech, pushing the continent’s total funding past the $1 billion mark and exceeding the $750 million raised in the same period last year by 40%.
According to data from Africa: The Big Deal, the past 12 months (June 2024 to May 2025) have seen African startups secure a record $2.5 billion, the highest rolling 12-month total since early 2024. This indicates a sustained, albeit more concentrated, investor interest in the region.
Egypt’s Ascendance as Investment Hub
Egypt was the standout performer in May, accounting for six of the seven largest deals on the continent and leading the funding race for 2025 so far. Egyptian startups have collectively raised over $330 million this year, representing 31% of all funding across Africa.
This surge is attributed to the government’s proactive measures to improve the investment climate, including tax incentives for companies with revenues below EGP 20 million, and ongoing efforts to finalize a national Startup Charter.
The largest deal in May was secured by Nawy, an Egyptian proptech platform, which raised an impressive $75 million ($52 million in equity via a Series A round led by Partech, and $23 million in debt). This landmark deal now stands as the largest proptech funding round in African history.
Other significant Egyptian raises in May included:
- Tasaheel (a subsidiary of MNT-Halan): Completed Egypt’s largest corporate bond issuance to date, valued at $50 million.
- Valu (fintech firm): Secured $27 million from Saudi investors, with plans for a public listing.
- Thndr (fintech): Raised over $15 million.
- Sylndr (mobility startup): Also raised over $15 million in a Series A round.
- Money Fellows (digital savings and credit platform): Secured $13 million in a pre-Series C round to fuel expansion.
Continental Overview and Key Trends
While fewer individual deals were recorded in May (36 startups raising $100,000 or more), the trend pointed towards larger cheques, with seven ventures each securing over $10 million. This suggests a more selective, yet confident, investment approach.
Beyond Egypt, the funding landscape for 2025 to date sees South Africa as the second-largest recipient with 26% of total disclosed investments, followed by Nigeria at 15% and Kenya at 12%.
Sectoral Dynamics and Investor Focus
Fintech continues to lead as the most attractive sector for investment, closely followed by proptech due to Nawy’s significant round. Mobility startups are also gaining traction.
While Artificial Intelligence (AI) has garnered considerable global buzz, investment in AI startups within the MENA region remained relatively limited in May, highlighting a potential disconnect between narrative and actual capital deployment.
Early-stage investments dominated the funding landscape, accounting for the majority of the total capital raised. Furthermore, Business-to-Business (B2B) startups continued to attract the lion’s share of investor interest, with hybrid B2B/B2C models also performing well.
Exits and Outlook
May also saw four notable exit events, with three of them being Egyptian: MaxAB-Wasoko’s acquisition of Fatura, a merger between wellness startups Miran and Welnes, and Catalyst Partners Middle East’s $23 million acquisition of Qardy. These exits signal a maturing market with increasing consolidation.
The sustained investment flow, particularly the strong performance from Egypt and the significant increase in year-to-date funding compared to last year, points to a resilient and growing African startup ecosystem.
While the focus remains on established hubs, the increasing size of individual deal sizes indicates a deepening confidence from both local and international investors in the long-term potential of African innovation.
