Tracxn has released its Africa Tech H1 2025 Funding Report, offering a detailed view of funding trends, sectoral performance, acquisitions, and investor activity across the continent.
The African tech ecosystem raised a total of $427 millioin H1 2025, reflecting a notable drop in funding activity compared to the previous half-year. Despite the decline, the region recorded a modest year-overyear increase, with early-stage funding and key sectors like FinTech and Auto Tech showing pockets of growth.
Africa’s tech ecosystem raised a total of $427 million in H1 2025, a drop of 38% compared to the $694M raised in H2 2024. On a year-over-year basis, funding rose by 30% compared to $329M raised in H1 2024. This period did not witness any $100M+ funding rounds, compared to two rounds in H2 2024 and 1 round in H1 2024.
Seed Stage saw a total funding of $54.2M ll million in H1 2025, a drop of 41% compared to $92.4M raised in H2 2024, and a drop of 22 per cent compared to $69.9M raised in H1 2024. Early Stage saw a total funding of $355M in H1 2025, an increase of 11% compared to $321 million raised in H2 2024, and an increase of 37 per cent compared to $259 million raised in H1 2024.
Late Stage witnessed a total funding of $18.1 million in H1 2025, a drop of 94 per cent compared to $280 millioln raised in H2 2024, and no funding was seen in H1 2024. FinTech, Enterprise Applications, and Auto Tech were the top-performing sectors in H1 2025 in this space.
The FinTech sector saw a total funding of $193 million in H1 2025, which is a drop of 65 per cent when compared to $557 million raised in H2 2024 and an increase of nine per cent when compared to $177 million raised in H1 2024. The Enterprise Applications sector saw a total funding of $180 million in H1 2025, which is a drop of 39 per cent when compared to $295 million raised in H2 2024 and an increase of 183 per cent when compared to $63.5 million raised in H1 2024.
The Auto Tech sector saw a total funding of $88M in H1 2025, which is an increase of 203 per cent when compared to $29M raised in H2 2024 and a rise of 430% when compared to $16.6 million raised in H1 2024. No companies raised funds above $100 million in H1 2025. No unicorns were created in H1 2025 and H1 2024.
Additionally, no companies went public in H1 2025. Tech companies in Africa saw 15 acquisitions in H1 2025, which is a 25 per cent increase as compared to 12 acquisitions in H2 2024 and a decrease of 31 per cent compared to 22 acquisitions in H1 2024. Bank Zero, Fatura, and Baobab+ were acquired by Lesaka, Maxab, and BioLite respectively, in H1 2025.
Cairo-based tech firms accounted for 16 per cent of all funding seen by tech companies across Africa. Cape Town followed this at a close second. Flat6Labs, Y Combinator, and Techstars were the top overall investors in the African tech ecosystem. Renew Capital, Plug and Play Tech Center and Speedinvest were the top seed-stage investors in the Africa Tech ecosystem for H1 2025. Norrsken22, Prosus, and QED Investors were the top early-stage investors in the Africa Tech ecosystem for H1 2025.
CommerzVentures, Globis Capital Partners and Al Mada Ventures were the top late stage investors in the Africa Tech ecosystem for H1 2025. The Africa tech ecosystem experienced a contraction in overall funding during H1 2025, led by sharp declines in seed and late-stage investments.
While early-stage funding showed resilience with a notable uptick, the absence of $100 million+ rounds, IPOs, and unicorns underscores a cautious investment climate. FinTech remained the leading sector by absolute funding, though Enterprise Applications and Auto Tech exhibited stronger growth momentum. Acquisition activity picked up, with 15 deals reported, and investor participation remained strong, especially at the seed and early stages.
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
