Equity surge lifts African Startup funding to $442m in October

… Up 56% year-on-year

Africa’s startup ecosystem recorded one of its strongest months in 2025, with ventures across the continent raising $442 million in October, driven largely by a surge in equity deals, Africa: The Big Deal latest report revealed.

The performance marks the second-best funding month of the year, behind July, underscoring renewed investor confidence and momentum in the region’s innovation space.

The data shows that 76 percent of the total amount ($334 million) came from equity funding, making October the best month for equity investments so far in 2025. The strong showing adds to a broader rebound, with total startup funding across Africa reaching $2.65 billion between January and October, up 56 percent year-on-year.

Mobility and fintech dominate

October’s funding boom was led by a few large-ticket deals. E-mobility leader Spiro raised $100 million, the largest-ever investment in an African e-mobility startup. The deal positions Spiro as a key player in the continent’s clean transport transition.

Fintech heavyweight Moniepoint followed closely, adding another $90 million to its latest round, reinforcing investor confidence in Africa’s fast-growing digital finance ecosystem. Other notable equity raises included Tagaddod, Ctrack, and Mawingu, each securing $20 million or more to scale operations across energy, logistics, and connectivity sectors.

Debt financing also remained part of the mix, with MNT-Halan issuing a $71 million bond and valU raising about $23 million. Together, these deals highlight a maturing funding landscape where both equity and debt capital are increasingly used for growth and expansion.

A total of 53 startups raised at least $100,000 in October, well above the monthly average for most of the year. This increase reflects growing investor appetite and a broader recovery in deal flow across markets.

Over the past 12 months (November 2024–October 2025), startups on the continent have raised $3.2 billion, a 50 percent increase year-on-year, including $1.9 billion in equity, up 38 percent from the previous year. The number of ventures securing at least $1 million in funding also rose by eight percent reaching 207 startups.

This trend signals a resilient and evolving startup ecosystem, supported by stronger business models, improved regulatory frameworks, and an expanding pool of early- and growth-stage investors.

Royal Ibeh

Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.