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Africa’s startup industry started 2026 on a slower pace, with total funding dropping sharply as capital remained concentrated among a few dominant companies.
January 2026 saw 28 startups raise $177.10 million, dip from the $349.1 million secured across 75 deals in December 2025.
This is also lower than the $292.65 million raised across 54 deals in January 2025.
Despite the slowdown in both deal volume and total funding, the top 10 startups amounted to $163.8 million, representing 92.49% of all capital raised during the month.
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Data compiled by Nairametrics research revealed that investors are still favoring startups that have already shown visible progress and strong lead in their industries.
Mono was excluded from this funding list following its all-stock acquisition by Flutterwave in a deal valued at $25–$40 million, as the transaction represents an M&A exit rather than a capital raise.
What the data is saying
January’s figures suggest a noticeable contraction in overall funding activity compared to the previous month.
However, the concentration of capital among leading startups remained largely unchanged.
- Total funding dipped sharply by 49.27% from $349.1 million in December to $177.1 million in January.
- Deal activity declined by 62.67%, dropping from 75 transactions to just 28.
- The top 10 startups secured $163.8 million, accounting for 92.49% of total funding.
- In comparison to December’s figure, the top 10 raised $321.5 million, also accounting for over 92% of total funding.
Top 10 African startups in January 2026
Tuteria (Nigeria) — $2.6 million
Tuteria, a Lagos-based tutoring marketplace, raised $2.6m in new funding backed by Enza Capital and Chui Ventures. This is a remarkable raise, especially as Nigeria’s startups venture funding has been in its lowest levels in recent years.
- Sector: Education & Jobs
- Region: Western Africa
- Fund type: Venture Round
- Investors: Enza Capital, Chui Ventures
In the ninth place, 3 startups raised $3 million each
A. Savannah (Ghana)— $3 million
Savannah, an Africa-focused software talent company, has been acquired by Israeli’s Commit in a deal valued at $3 million.
The company will now operate on Commit’s global platform while keeping its team and operations intact, with founder Itai Azogui and the entire staff joining Commit.
- Sector: Education & Jobs
- Region: Western Africa
- Fund type: M&A
- Investors: Commit
B. OneDosh(Nigeria) — $3 million
OneDosh, a fintech focused on using stablecoins for cross‑border payments, has secured $3 million in pre‑seed funding to improve how people and businesses move money across borders.
With this investment, the company plans to expand into new corridors, deepen its liquidity network, and add senior hires to support its next phase of growth.
- Sector: Fintech
- Region: Western Africa
- Fund type: Pre-Seed
- Investors: Undisclosed
C. MyCredit(Kenya) — $3 million
MyCredit has secured $3 million in senior debt from an international microfinance lender, giving the Kenyan digital lender a stronger balance sheet, as it marks a decade in operation.
With Noblestride Capital advising, the company has now raised around $13.6 million in debt funding. This latest injection will help MyCredit expand its lending reach, offering more support to MSMEs, schools, salaried individuals, and entrepreneurs across Kenya.
- Sector: Fintech
- Region: Eastern Africa
- Fund type: Debt
Sanivation (Kenya) — $3.3 million
Sanivation has raised $3.3 million to grow its waste‑to‑energy business.
The funding, provided through PIDG’s InfraCo, will support the expansion of the Naivasha Treatment Plant so it can produce more solid fuel briquettes made from treated human waste for industrial customers
- Sector: Waste Management
- Region: Eastern Africa
- Fund type: Venture round
- Investors: InfraCo Africa
Izili (Madagascar) — $5 million
Pan‑African energy company Izili has acquired off‑grid solar provider Qotto as part of its push to expand access to solar power across West Africa.
With this acquisition, Izili now operates in six African countries and strengthens its push into rural and off‑grid electrification.
The company also signed a $5 million financing deal with the Off‑Grid Energy Access Fund, structured as convertible bonds, to support its expansion plans and reinforce its financial structure.
- Sector: Energy & Water
- Region: Eastern Africa
- Fund type: M&A
- Investors: FEI-OGEF
Cauridor (Guinea) — $9.5 million
Cauridor, a global fintech company working on payment infrastructure and financial services that link Africa to international markets, has raised $9.5 million in a Series A round backed by LoftyInc and other investors.
- Sector: Fintech
- Region: Western Africa
- Fund type: Series A
- Investors: LoftyInc, Others.
Terra Industries (Nigeria) — $11.75 million
Terra Industries, formerly known as Terrahaptix, has raised $11.75 million to scale its manufacturing capabilities as a defense company. The company, which briefly exited the defense market, is now fully re-entering it.
Terra’s $11.75 million funding round is led by 8VC, founded by Palantir co-founder Joe Lonsdale. The round, which includes only US-based investors, saw participation from Valor Equity Partners, Lux Capital, SV Angel, Leblon Capital, Silent Ventures, Nova Global, and angel investors, including Alex Moore, who sits on the board of Palantir, and California-based investor Meyer Malka.
- Sector: Deeptech
- Region: Western Africa
- Fund type: Seed
Yakeey (Morocco) — $15 million
Yakeey, a Moroccan property technology (proptech) startup, has closed a $15 million Series A funding round, marking the largest of its kind in the nation’s history.
The deal stands out not just because of the amount involved, but also because Enza Capital, a pan‑African VC firm surprisingly joining the round.
- Sector: Proptech (Housing)
- Region: Northern Africa
- Fund type: Series A
- Investors: Enza Capital, IFC, Beltone Venture Capital, CDG
NowPay (Egypt) — $20 million
NowPay, a Cairo‑based fintech that focuses on payroll and employee financial wellness, has entered the Saudi market through a new joint venture called NowAccess, created in partnership with Tas’heel, the consumer finance arm of United International Holding Company.
The collaboration builds on an MoU signed in early 2025 and comes as Saudi Arabia sees rising interest in updated payroll, HR, and fintech services.
As part of the agreement, Tas’heel is investing $20 million and taking a 75% share of the new venture, while NowPay keeps 25%.
- Sector: Fintech
- Region: Northern Africa
- Fund type: Venture Round
- Investors: Tas’heel
MAX (Nigeria) — $24million
Metro Africa Xpress (MAX), a Nigerian mobility financing startup, has raised $24 million in an equity and debt funding round as it continues its transition to electric mobility financing in West and Central Africa after hitting profitability in Nigeria.
i. Equity round — $12million
The equity round saw participation from Equitane DMCC, Novastar, Endeavor Catalyst, and other global investors.
ii. Debt round — $12million
Asset-backed debt from the Energy Entrepreneurs Growth Fund (EEGF) and additional development finance partners.
The new capital will help the startup grow more quickly, strengthen its clean‑energy infrastructure, and build a pan‑African mobility platform that makes transport more affordable, more accessible, and more sustainable.
- Sector: Logistics & Transport
- Region: Western Africa
- Fund type: Venture round ($ 12million) and Debt ($12 million)
ValU (Egypt) — $63.6 million
Egyptian fintech company Valu has signed a short-term financing agreement of up to EGP3 billion ($63.6 million) with the National Bank of Egypt (NBE).
The EGP3 billion financing facility from the NBE will help the company further expand and follows its recent launch in Jordan.
- Sector: Fintech
- Region: Northern Africa
- Fund type: Debt
- Investor: National Bank of Egypt
Regional breakdown
Across the regions, Northern Africa stood out as the main funding center, pulling in $103.8 million, or about 58.61% of all capital raised. Most of this came from strong activity in Egypt and Morocco.
- Western Africa followed with $59.3 million (58.61%), largely supported by Nigeria’s strong showing and Guinea’s fintech raise.
- Eastern Africa secured $11.5 million (6.49%), driven by Kenya and Madagascar, while Southern Africa recorded no disclosed funding.
- Pan-African deals contributed $2.5 million (1.41%).
This marks a shift from December 2025, when Eastern Africa led due to mega rounds in Kenya.
Country-level performance
At the country level, Egypt and Nigeria continued to dominate Africa’s startup funding landscape. Together, both countries accounted for nearly 78% of total capital raised in January.
- Egypt led with $85.7 million (48.39%), supported by fintech and housing-related transactions.
- Nigeria followed closely with $45.9 million (25.92%), driven by fintech and logistics activity.
- Morocco contributed $18.1 million (10.22%), while Guinea secured $9.5 million (5.36%).
- Kenya secured $6.3 million (3.56%), Madagascar attracted $5 million (2.82%), Ghana recorded $3.9 million (2.20%), Ethiopia posted $0.2 million (0.11%), and $2.5 million (1.41%) was categorized as Africa-wide funding.
The concentration in the top two markets highlights the widening capital gap between established ecosystems and emerging startup markets across the continent.
Sector breakdown
Fintech maintained its dominance in January, reinforcing its position as Africa’s most attractive venture segment.
Investors continued to favour digital finance platforms with scalable and revenue-generating models.
- Fintech raised $101.6 million across the January deals, representing 57.37% of total funding, with 5 of the sectors amongst the top 10.
- Logistics and Transport followed with $27.1 million (13.09%), underscoring continued interest in mobility and supply-chain optimization.
- Housing secured $15 million (7.24%), while Deeptech attracted $12.7 million in total (6.13%).
- Energy & Water raised $7 million (3.38%). Healthcare drew $3.5 million (1.69%), Waste Management raised $3.3 million (1.59%).
- Services accounted for $1 million (0.48%), while Agriculture & Food secured $0.2 million (0.10%).
The data shows that nearly two-thirds of all capital deployed in January flowed into fintech ventures.
What this means
January 2026 reflects a recalibration rather than a downturn in Africa’s startup ecosystem. While total funding declined sharply from December’s surge, capital remains available for startups with strong fundamentals and strategic value.
The sustained concentration, 92.49% of funding going to the top 10 startups, indicates that Africa’s venture market continues to operate in a risk-return structure. Large, established players attract the majority of capital, while smaller or early-stage startups compete for limited funding pools.
As 2026 progresses, the key question will be whether capital allocation broadens beyond fintech and dominant markets like Egypt and Nigeria. For now, January’s data sends a clear message: overall funding may have cooled, but investor conviction in Africa’s top-tier startups remains strong.
