African startups raised a total of $174 million in January 2026 through disclosed deals of $100,000 and above.
This is according to the latest data released by Africa: The Big Deal, the platform, which tracks all startup funding across the continent.
The figure represents a sharp slowdown compared with January 2025, when startups raised $276 million, and is also well below the $263 million monthly average recorded over the previous 12 months.
While funding levels remain higher than in January 2023 at $106 million and January 2024 at $85 million, the latest data points to deepening caution among investors, particularly when deal volume is considered.
What the data is saying
The funding data reveals that only 26 startups announced funding rounds of at least $100,000 in January, a number that analysts say is more worrying than the headline funding total.
This is just above half of the monthly average over the past year and significantly below the number of deals recorded in January 2025.
On this metric, January 2026 marks the lowest monthly tally since at least 2020, highlighting how selective capital deployment into African startups has become as investors prioritise fewer, larger, and often later stage bets.
Despite the overall slowdown, a handful of large transactions lifted the January total.
Egypt-based fintech valU emerged as the top fundraiser after securing $64 million in debt financing from the National Bank.
- Nigeria’s mobility financing startup MAX followed, raising $24 million through a mix of equity and asset backed debt.
- The deal underscores continued investor interest in asset heavy business models with clearer revenue paths, even amid a tougher funding environment.
- Four other startups raised equity rounds of $10 million or more during the month.
- These include NowPay, an Egyptian fintech that raised $20 million, Moroccan proptech startup Yakeey with a $15 million Series A, Terra Industries, which raised $12 million in the defence sector, and Côte d’Ivoire based fintech Cauridor.
Flashback
For December 2025, Nairametrics reported that 75 African startups raised a total of $349.1 million.
The December funding marked a sharp pullback from November 2025, when African startups raised $589.9 million across 38 deals, with the top 10 alone contributing $573 million.
While deal activity nearly doubled in December, total funding fell significantly, pointing to smaller cheque sizes and heightened investor caution.
Unlike November’s IPO-driven surge, December reflected a softer market environment. Funding declined 40.8% month-on-month, even as deal volume rose.
Exits add momentum outside funding totals
While not included in the January funding figures, Africa: The Big Deal also highlighted three notable exit announcements during the month.
Flutterwave acquired Nigerian open banking startup Mono in an all-stock deal valued at around $30 million, signalling continued consolidation within the fintech ecosystem.
In addition, tech talent platform Savannah was acquired by Commit, while Izili Group completed the acquisition of off grid solar company Qotto.
Together, these exits point to growing merger and acquisition activity as stronger companies reposition for scale in a capital constrained market.
What you should know
With funding slowing down for startups across Africa, the ecosystem is now witnessing what observers described as selective consolidation.
Through mergers and acquisitions, stronger tech companies are repositioning to survive and grow in a tougher funding environment.
In January 2026 alone, three notable transactions were announced, including Flutterwave’s acquisition of Mono, Pastack’s acquisition of Ladder Microfinance Bank, and Andela’s acquisition of Woven, underscoring the momentum behind this trend.
