African fintechs raised $157m in Q2 2025, as early-stage startups funding declines

African fintech startups have raised a total of $157 million in equity funding in the second quarter of 2025. This was disclosed in the State of Fintech report for Q2 2025 by global venture funding and startup analytics company, CB Insights.

According to the report, the total is an improvement from the $118 million raised in the previous quarter, representing a 33% increase. It is more impressive when compared to the $141 million equity funding attracted in Q4 2024, an 11.3% rise.

The total is even more impressive when weighed against the same period last year, when fintechs on the continent were only able to raise $35 million in equity funding. This represents a 348.5% increase.

Indeed, Q2 2025 is the second most-funded quarter over the last seven quarters, surpassed only by Q3 2024 when fintech startups raised an astounding $268 million.

Aside from the impressive funding total, the number of deals witnessed an uptick, with 23 deals accounting for the $157 million raised during the quarter. This is slightly above the 21 deals recorded in the previous quarter.

It nonetheless still falls within the general average obtained in the last four quarters, with Q3 2024 (25 deals), Q4 2024 (21) and Q1 2025 (21).

One detail worth noting is that equity investment in early-stage startups witnessed a significant decline. It. dropped from 87% of total equity funding in 2024 to 61% in 2025 so far. While there is still half the year to go, the decline in numbers portrays a worrying trend nonetheless.

Essentially, it means there is less and less funding for the younger startups to innovate.

Consequently, mid and later-stage fintech startups enjoyed an increased share of the funding, with 11%. This is larger than the average of 5 per cent recorded in previous years. Essentially, investors are choosing to back already proven and trusted companies rather than green innovators.

Egyptian fintech startups dominate as Nigeria lags

Egypt’s dominance in the African venture funding scene was punctuated as four Egyptian fintech startups made the 10 largest funding rounds of the quarter. At the top is South African fintech Stitch, which raised $55 million in a Series B round in April.

The round, which brought Stitch’s total funding to $107 million, saw participation from Flourish Ventures, Glynn Capital Management, Norrsken22, QED Investors and Firstminute Capital.

In second place is Egyptian buy-now-pay-later startup, Valu, which raised $27 million in May. The investment, which opened the door for the startup to secure its listing on the Egyptian Exchange (EGX), witnessed participation from Sanabil Investments and the Saudi Investment Bank.

Côte d’Ivoire’s Djamo followed with a $17 million series B raise round in April. Janngo Capital, Enza Capital, Oikocredit, Partech, and Y Combinator participated in the round aimed at expanding its product suite for its retail customers.

The raise is the largest-ever by an Ivorian startup.

Egyptian fintech startup Thundr raised $16 million in a Series A funding round in May to be the next on the table. The round witnessed participation from Prosus Ventures, BECO Capital, Jameel Investment Management Company, Raba Capital, and Y Combinator.

Another Egyptian fintech, MoneyFellows raised $13 million in a Series B funding round in May, with participation from Al Mada Ventures, Development Partners International, CommerzVentures, and Partech.

MyCredit is the only Kenyan fintech startup on the Top 10 list, after raising $11 million in an undisclosed round in April. The round was supported by BlueOrchard and Oikocredit.

Octane is the fourth Egyptian startup on the top 10 list after raising $5 million in a Seed funding round in June. The round was backed by Algebra Ventures, Elsewedy Capital Holding and Shorooq Partners.

Burkina Faso made a rare appearance in the African startup investment conversation as Banque Agricole Du Faso raised $5 million in a Corporate Minority investment. The funding, which took place in June, was powered by LONAB.

The two Nigerian fintech startups made the last three in the group, with Carrot raising $4 million in a Seed round back in May and PaidHR, which raised $2 million in a seed round back in June. Tunisia’s Konnect completes the top 10 with a $2 million Seed round in May.

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