INNOVATION

African Startups Hit Record $550 Million in July 2025 Funding

vivian peter August 14, 2025 0

African startups raised a record-breaking $550 million in July 2025  the highest monthly total in over two years  driven largely by debt financing in the clean energy sector.

According to industry data, 61 startups across 15 countries secured funding rounds of at least $100,000. The “Big Four” markets  Nigeria, Kenya, Egypt, and South Africa accounted for 41 of these deals, with Libya recording its first-ever $100K+ startup funding round.

The surge was dominated by Kenya-based energy companies, with d.light securing $300 million through receivables financing, and Sun King raising $156 million via a debt securitization facility the largest solar-backed debt facility in Sub-Saharan Africa outside South Africa. Together, these two companies accounted for 83% of the total raised.

Debt financing drove the month’s success, contributing $493 million (89%) of the total, while equity funding stood at $58 million, marking one of the lowest monthly equity totals in 2025. Despite this, Africa’s equity funding for 2025 has already surpassed $1 billion, reaching the milestone earlier than in 2024. The standout equity deal in July was Rwazi’s $12 million Series A

So far in 2025, African startups have raised about $1.975 billion, leaving the ecosystem just $25 million shy of the $2 billion mark for the year.

Industry analysts say the shift towards debt financing reflects investor interest in asset-backed, revenue-generating models, particularly in sectors like renewable energy. The funding spread across 15 nations also signals a growing diversification of Africa’s startup ecosystem.

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