Venture funding: Togo’s Gozem leads as African startups witness slowest February since 2019

After what many consider an impressive January for African tech startup venture funding, February tells a less inspiring tale as African startups were only able to raise $119 million. This is according to data presented by African venture funding analytics company, Africa the Big Deal.

The total $119 million is far less than the $289 million raised in January 2025 and represents a colossal 58.8% monthly decline. It is also lower than the $203 million monthly average over the last 12 months.

Indeed, it represents the least-funded February since 2019, a fact that defeats the notion that the venture funding winter might be ending.

38 startups raised above $100,000 and contributed to the monthly haul. This tells another uninspiring tale as it is lower than the average number of startups raising over $100,000 over the last 12 months (45).

Indeed, February 2025 have fewer startups in this category than any other February since 2021 (post-pandemic).

So, are there any positives in the February numbers? Not really: unless viewed as part of a larger whole.

Thus, combined with the January total, African startups have raised $408 million in venture funding in 2025. This is 35% more than the $302 million raised in the same period in 2024 and a little more than the $400 million raised within the same period in 2021.

However, African startups appear to be attracting larger deals. Thus, while the number of startups attracting at least $100,000 might be less, 42 startups have attracted $1 million and above in 2025. This is roughly the same with 42 in 2023 and 43 in 2024. This is even far more than the highest number of 31 startups that raised more than $1 million raised before 2021.

Perhaps, there is light at the end of the winter funding tunnel.

See also: Nigeria’s LemFi leads as African startups raised $289 million in January 2025

Togo’s Gozem leads venture funding in February 2025

Seven startups attracted the bulk of the funding during the month under review. While startups from the Big Four markets (Kenya, Nigeria, Egypt and South Africa) pulled their weight, the largest funding. came from Togo. The usually quiet West African country made the loudest statement of the month.

Gozem, a Togo-based ride-hailing platform announced on February 26 that it has raised $30 million in a Series B funding round. The round was led by Shipping Agencies Services (SAS) and Al Mada Ventures.

The fund, comprising $15 million in equity and $15 million in debt, will be used to enhance its vehicle financing service as it plans to launch into new markets. 

According to founders Gregory Costamagna and Raphael Dana, a huge part of the debt raised is structured towards Gozem’s vehicle financing ends. The fintech’s ride-hailing service covers motorcycles, three-wheelers, and cars and its vehicle financing product is aimed at helping its drivers purchase vehicles. 

Coming a distant second was Egyptian fintech, Khazna which raised a $16 million pre-series B funding round in February. The round, which brings the startup’s total funding to over $63 million, will support its expansion plans as it prepares to apply for a digital banking license in Egypt and expand into Saudi Arabia.

Next is Kenya’s mobility fintech company, Hakki Africa which raised $13 million on February 3. The round which was co-led by Global Brain’s Flagship Fund IX and the Norinchukin Innovation Fund L.P, brings the startup’s total funding to $12.3 million.

Others are Nigeria’s Raenest which raised $11 million in a Series A round, and another Nigerian fintech, Tether which raised $10 million comprising a $3 million seed round and $7 million in debt. Others are Ghanaian fintech, Affinity which raised an $8 million round and Egypt’s Taager which raised $7 million in a pre-Series B round to scale its Logistics & Transport offerings.

It is interesting to note that these seven largest deals (representing 80% of the total) were all either Fintech or Logistics & Transport deals, in line with 2024 trends. The majority of them were in one of the ‘Big Four’.

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