Egypt leads in May with $1 Billion In Funding For African Companies In This Year

The total amount of $1 billion raised by African startups between January and May 2025 is a 40% increase over the same period in 2024.

In January 2025, the year got off to a great start with $289 million in startup investment. The enthusiasm, however, slowed in the months that followed, with startups raising $119 million in February and $50 million in March—the lowest amount to date.

A much-needed recovery in April, with $343 million in investment, suggested that investor interest had returned. However, May has slowed the pace once more, raising $254 million across 39 agreements that were made public.

Even with this decrease, the first five months’ total funding still hit the billion-dollar milestone, which is encouraging for the African IT sector.

Surprisingly, from June 2024 to June 2025, African entrepreneurs raised more than $2.5 billion, the most since early 2024.

With $330 million raised so far in 2025—31 percent of all disclosed money raised—Egypt has become Africa’s leading destination for startup capital. In comparison to the same period in 2024, the nation’s funding activity has increased by 130%, with over 16 agreements and 11 announced investments.

Egypt was the source of the biggest deals in May 2025; six of the seven firms that raised over $10 million in May 2025 were based there. With $75 million in finance, including a $52 million series A round and a $23 million debt financing, Egypt’s proptech startup Nawy received the largest investment.

Other significant Egyptian agreements include the $50 million fundraising for MNT-Halan, the $27 million raised by Saudi Arabian investors for Valu, the $15.7 million round of funding for fintech startup Thndr, the $15 million round for mobility company Slyndr, and the $13 million pre-series C round for MoneyFellow.

With a $15 million series B investment co-led by Partech and the Cairo Angels Innovation Fund (CAIF), the South African health technology startup AURA also garnered media attention.

Despite Egypt’s victory, the other “Big Four” in Africa’s financial scene continued to hold the top spots.

Of the overall money, 26% came from South Africa, 15% from Nigeria, and 12% from Kenya.

Major agreements have significantly decreased in recent months in Kenya, which led the continent in fundraising early in the year.

The month-to-month variations in funding, even with the $1 billion milestone, show cautious optimism among investors.

However, given Egypt’s remarkable performance and strong 12-month performance, there is hope that African startup funding is reestablishing itself.