African Startup Funding in August 2025: A Relatively Calm Month
August 2025 was a relatively calm month for startup funding in Africa, especially compared to July, which was an exceptionally active month. With 33 startups raising a total of $93 million through deals over $100,000 (excluding acquisitions), it was the second quietest month of the year after March. However, this calmness does not worry observers, as the amount raised remains higher than in August 2024, and the number of funded startups is comparable to the same months in the last two years.
Funding Breakdown
The majority of funds - about three-quarters - were raised in the form of equity, with the rest consisting of debt, including a securitized bond issuance of over $9 million by valU in Egypt. Among the most significant raises were:
- Koolboks' $11 million Series A
- Hewatele's $10.5 million funding
- Breadfast's $10 million Series B2
- Chowdeck's $9 million Series A
- A new raise by Ampersand estimated to be several million dollars
The most attractive markets remain Egypt, Kenya, and Nigeria, which together account for 75% of the total funds raised.
Sectoral Balance
Sectorally, funding is fairly balanced, with five sectors capturing at least 10% of the funds thanks to the major raises mentioned. The month was also marked by a few acquisitions, including the most notable one being Nedbank's purchase of iKhokha for over $93 million in South Africa.
Global Perspective
On a global scale, the African startup ecosystem continues to show positive dynamics. So far, 2025 has seen startup funding reach $2 billion, with $1 billion in equity. These figures suggest that the year could surpass 2024's performance, ending two consecutive years of annual decline. If rumors of mega-deals materialize, the total funds raised could approach $3 billion by the end of the year.
African Angel Academy
In parallel, the African Angel Academy is continuing to accept applications for its 12th cohort until September 12, 2025. This 12-week program allows beginner or experienced investors to acquire the skills and network necessary to make informed decisions when funding African startups.
