Egypt dominates as African startups raised $254m in May to cross the $1bn mark in 2025

Venture capital funding into Africa has crossed the $1 billion mark in just five months of 2025. According to a report by venture funding analytics organisation, Africa the Big Deal, the continent’s funding flow has begun to witness a new normal

According to it, startups on the continent have surpassed the $750 million raised within the same period in 2024. This represents a 40% annual increase. In comparison to previous years, this feat is coming three months later than it did in 2023 and 2022.

Notably, the billion-dollar mark was achieved in the same month in 2021, three months earlier than 2020 and six months earlier than 2019. By implication, 2025 is the most impressive for African startups as far as funding is concerned.

Egypt dominates as African startups raised $254 million in May 2025

It took a total raise of $254 million in May to cross the $1 billion mark. African startups raised $289 million in January. The tally slumped to $119 million in February. Venture funding in Africa’s biggest decline occurred in March, with a $50 million total raise.

The numbers rebounded massively in April as funding grew to $343 million, representing a 586% increase and bringing the total funding at the time to $803 million. With the $254 million May raise, 2025 has indicated an early potential to outperform 2024’s total of $2.2 billion.

With May’s total, startups in Africa have raised $2.5bn over the past 12 months (June 2024- May 2025). This makes it the highest 12-month period in a while.

In all, 36 startups announced funding of over $100,000 in May. They were led by Egypt-based property technology company, Nawy, which raised $75 million in a record-breaking deal. That round is by far the largest proptech deal on the continent.

Combining $52 million in equity and $23 million in debt financing from Egypt’s top banks, Nawy’s raise was led by Africa-focused venture capital firm Partech Africa, with participation from Development Partners International’s Nclude Fund, e& Capital, Endeavor Catalyst, HOF Capital, March Capital Investments, Outliers, Plug and Play, Shorooq Partners, VentureSouq, and Verod-Kepple Africa Ventures.

Another Egyptian startup, Tasaheel, the lending arm of the country’s foremost financial technology company, MNT-Halan, finalised an investment round for $50 million. Like Nawy’s, this raise has been described as Egypt’s largest corporate bond issuance ever.

It was intended to support the company’s ability to meet growing demand for business loans and reinforce the scale and efficiency of its lending operations

Valu, another Egypt-based financial technology company, raised $27m from Saudi investors. These included the Saudi Investment Bank and Sanabil Investments. The raise, which puts the buy-now-pay-later startup on track to list publicly on the Egyptian Exchange (EGX), is expected to strengthen its financial position and support its expansion plans.

Thndr, another Egypt-based financial technology company, raised $15.7 million in a funding round led by Prosus alongside support from Y Combinator, BECO Capital, Endeavor Catalyst, JIMCO, Raba, and Onsi Sawiris.

The latest funding round, which brings the total capital raised by the Cairo-based Fintech to $37.76 million, will be deployed to support its regional expansion and focus on deepening its operational presence in the UAE while simultaneously laying the groundwork for entry into Saudi Arabia.

Egypt-based used car e-commerce company, Sylndr, raised $15.7 million in a series A funding round led by London-based Development Partners International’s Include Fund Venture Capital. The new funding, which brings its total raised since launch to over $30 million, will strengthen Sylndr’s expansion beyond online used car sales into auto financing, servicing, and tools for dealers.

Money Fellows, another Egypt-based fintech, secured $13 million in a pre-Series C round led by Casablanca-based Al Mada Ventures and DPI’s Nclude Fund with participation from Partech Africa and CommerzVentures. The round, which brings the company’s total funding to just over $60 million, is aimed at expanding outside of Egypt as the Cairo-based fintech says it is finally ready to shift from steady growth to regional expansion.

Aura, a South African healthtech startup initially focused on improving emergency response, announced that it has raised $15 million in a Series B funding round. 

The funding round, led by Cathay AfricInvest Innovation Fund (CAIF) and global VC firm Partech, will be used to expand its services into the United States and build a global infrastructure for emergency dispatch.

While the total of 36 startups which raised $100,000 or above in May is slightly lower than in the past few months, it, however, means the median deal value was higher, as at least seven startups raised over $10 million last month.