African Startups Bounce Back, Raise $343 Million in April

African startups experienced a notable resurgence in April 2025, securing a total of $343 million in funding, according to a new report by Africa: The Big. This marks a dramatic rebound from the previous month, where startups across the continent managed to raise only $50 million, the lowest monthly total since 2020.

The April funding figure makes it the second-highest ever recorded for that month, surpassed only by the investment boom of April 2022. The report indicates that this represents a 4.5x increase compared to April 2024, signaling a renewed, though cautious, confidence from investors in Africa’s innovation ecosystem. Driving this strong performance were several major deals, including Africa’s first mega-deal of the year.

South African healthtech firm hearX raised $100 million via a strategic merger with U.S.-based hearing aid company Eargo. This cross-border deal highlights Africa’s increasing role in global health innovation and underlines the continent’s capacity to scale in niche technology verticals like hearing health. Another standout was Egyptian Islamic fintech startup Bokra, which raised $59 million through a sukuk issuance, a rare feat for a company barely a year out from its $4.6 million pre-seed round. This move underscores not only the growing sophistication of Islamic fintech in North Africa but also a rising interest in alternative financing models across African markets. South Africa’s Stitch, a prominent player in payment infrastructure, secured $55 million from existing investors as it seeks to scale its end-to-end payment solutions across the continent. This expansion push further reinforces South Africa’s position as a fintech hub and the growing appetite for infrastructure that enables seamless financial transactions across African borders. In addition to funding inflows, April also witnessed a wave of consolidation within the African tech space, with at least four notable startup exits. Three of these occurred within the fintech sector. Egyptian fintech ADVA was acquired by UAE-based Maseera, while Nigerian fintech Bankly was bought by investment firm C-One Ventures. Meanwhile, Peach Payments of South Africa acquired Senegal-based PayDunya, signaling a strategic move to increase its footprint in Francophone West Africa. The recovery in April significantly lifted the year-to-date funding numbers. Between January and April 2025, African startups raised a total of $803 million across 163 deals, up 43% from the $563 million recorded during the same period in 2024. The number of startups attracting investment also grew, rising from 147 in the first four months of 2024 to 163 in 2025, reflecting improved breadth and diversity in deal activity.

Furthermore, the report notes that at least 225 unique investors have participated in deals worth $100,000 or more so far this year. This highlights not only the growing volume of capital but also its expanding diversity in terms of sources and investor types.