THE STATE OF TECH IN AFRICA 2025: Year in Review

African Startups Raise $3.42B in 2025, Outpacing 2023 & 2024.

The State of Tech in Africa (SOTIA) report is the most in-depth review of the continent’s tech landscape. The 2025 year in review edition breaks down the major developments influencing the ecosystem, covering funding, mergers and acquisitions, layoffs, shutdowns, expansions, strategic partnerships, pivots, and regulatory shifts.

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Key Insights

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Funding in 2025 grew by 53% in comparison to 2024

Both H1 and H2 2025 outpaced the equivalent periods in 2024. H2 2025 was the strongest half, raising $1.99B, while H1 2025's $1.42B nearly doubled the amount raised in H1 2024.

Funding by amount raised and number of deals from 2019 to 2025

Fintech attracted 40% of startup funding in 2025

Fintech dominated, securing $1.37 Billion in funding more than the next five sectors combined. Investment was highly concentrated, with Fintech, Energy & Water, and Logistics & Transport capturing over 70% of the total capital.

Africa's Funding in 2025 by Sector

M&A deals rise 72% to record high in 2025

Mergers and Acquisitions deals across Africa hit a record high (67) as startups focused on survival and growth. This trend included African startups acquiring companies outside of Africa, a strategic move to quickly expand into new markets.

Mergers and Acquisitions by year from from 2019 to 2025

Acquired startups in 2025

Startup Expansion by Region in 2025

Startups are thinking global, with nearly 30% of expansions targeting markets outside Africa.

Startups across the African market are actively pivoting their business models and experimenting with new approaches. We are also tracking a large number of strategic partnerships, often driven by the pursuit of profitability. These collaborations provide the infrastructure and critical intelligence needed to adapt quickly and thrive in a tightening market.

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