The State of Tech in Africa H1 2025: $1.42B Raised Amid Record M&A Activity

What founders should know

TechCabal Insights reports that African startups raised $1.42 billion across 243 deals in the first half of 2025, a 78.3% increase from the same period in 2024. Equity contributed $947 million, debt $448 million and grants $26 million. Fintech attracted $638.8 million, nearly 45% of the total, followed by energy and water, healthcare and housing.

The report also recorded 29 mergers and acquisitions, a 45% year-on-year increase and the highest half-year count in its tracking. Egypt and Kenya led acquisition activity with eight and seven deals respectively. Strategic partnerships and measured international expansion were other routes to growth, while agriculture and logistics funding declined.