African startups secured $365 million in funding in June 2025, making it the continent’s strongest month this year and the best single-month performance in nearly a year, according to data from Africa: The Big Deal.
This impressive June showing pushed total funding for the first half of the year (H1 2025) to $1.35 billion, representing a 78% surge compared to the $800 million raised in the same period in 2024.
The H1 2025 total also nearly matches the $1.37 billion raised in the second half of 2024, reflecting a marginal 1.5% decline.
Monthly performance
While June’s performance certainly helped lift the numbers, it was not a one-off success.
Four out of the six months in H1 2025 saw monthly totals exceeding $250 million, further cementing the year’s upward funding trend.
- By contrast, March was a notable low point but now looks like an outlier rather than a signal of broader weakness.
- On average, African startups raised $237 million monthly in H1 2025, significantly higher than the $133 million average recorded during H1 2024 and also well above the $187 million monthly average for the full year 2024.
Equity and debt growth paint a balanced picture
- Equity funding led the way, with startups raising $950 million in H1 2025—a 79% increase compared to H1 2024.
However, it marked a 7% dip from the $1.02 billion in equity raised in H2 2024. Debt funding, which had lagged earlier in the year, experienced a remarkable resurgence in June.
- Startups raised $227 million in debt last month alone, more than half of the entire H1 debt total and the highest monthly debt figure in over two years. Notably, Senegal-based fintech Wave accounted for $137 million of that sum.
By the end of June, debt funding had reached $400 million, up 55% from H1 2024 and nearly identical to the $405 million raised in H2 2024.
Outlook remains cautiously optimistic
With both equity and debt instruments contributing significantly to the improved numbers, industry observers say Africa’s startup funding ecosystem appears to be stabilizing after a prolonged downturn that began in 2022.
The consistent performance across multiple months signals growing investor confidence and improved deal flow, even as global macroeconomic uncertainties persist.
- If the momentum holds through the second half of the year, 2025 may mark the beginning of a sustained recovery in African tech investment.
- However, while funding is picking up for African startups, it is still a bit slow in Nigeria, which was once the trailblazer in African startups funding.
- In May, for instance, Nairametrics reported that no Nigerian startup made the list of top 10 fundraising in the month, as Egyptian startups dominated with big tickets.
