In May 2025, African startups secured a total of $254 million in funding, reflecting sustained investor interest and robust confidence in the continent's tech ecosystem. This momentum brings Africa's year-to-date funding to over $1 billion, a 40% increase compared to the $750 million raised during the same period in 2024. Egypt emerged as the regional powerhouse, accounting for six of the seven largest funding deals in May. The Egyptian tech scene raised over $330 million year-to-date, comprising 31% of total African investment. The standout performer was Nawy, a proptech platform that closed a record-breaking $75 million Series A round, with $52 million in equity and $23 million in debt, making it Africa’s largest proptech deal ever.
Other major Egyptian success stories included Tasaheel, a subsidiary of MNT‑Halan, which executed Egypt’s largest $50 million corporate bond issue; Valu, a fintech preparing for a public listing after raising $27 million; Thndr and Sylndr, each securing over $15 million in Series A; and Money Fellows, which raised $13 million to support regional expansion. Outside Egypt, South Africa claimed 26% of the continent’s funding this year, with Nigeria and Kenya trailing at 15% and 12%, respectively. Notably, AURA, a South African healthtech startup, closed a $15 million Series B round co-led by Partech and CAIF, targeting entry into the U.S. market, representing the only non-Egyptian $10 million-plus funding in May. This funding uptick coincides with March–May delivering the highest rolling 12-month total in recent memory: $2.5 billion raised from June 2024 to May 2025. Despite a slight dip in the number of deals (36 startups raised $100,000+ in May), those deals were larger, indicating investor confidence in scaling proven innovations.
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These strong results intersect with broader MENA trends. Across the Middle East and North Africa, $289 million was invested in 44 deals in May—a 25% increase from April and a modest gain year-on-year. In MENA, Egypt dominated with $125 million in May, underscoring its status as a regional startup hub. Sector-wise, Africa’s investor appetite remains centered on fintech, proptech, and healthtech. Egypt’s proptech boom is driven by Nawy’s landmark round, while fintech sectors continue to shape Nigeria’s startup narrative.
Behind the scenes, strong government support underpins this investment surge. Egypt’s Startup Ministerial Group announced $228 million in funding between January and May 2025, including $49 million for fintech giant MNT‑Halan and $23 million for Nawy. The initiatives include tax incentives and entrepreneurship reforms designed to attract more venture capital. Nonetheless, challenges persist: a smaller deal count during May signals potential caution among early-stage investors. Exchange rate volatility, infrastructure shortcomings, and regulatory diversity across African countries could decelerate funding flows as macroeconomic uncertainties evolve.
Looking ahead, the trajectory remains promising. Africa’s startup ecosystem has demonstrated resilience and maturity, with strong participation from global investors and strategic government policies. As the continent pursues digitization across fintech, proptech, agritech, and energy, follow-on investments and late-stage rounds could be the next frontier. In summary, the $254 million raised in May, led by Egypt’s funding powerhouse and the unprecedented rolling 12-month total, marks a pivotal milestone. For investors, entrepreneurs, and policymakers, the message is clear: African innovation, to not just survive but thrive, is primed for global impact.
Uphorial.
