Africa’s startup scene has entered a new era of momentum and maturity. In the first five months of 2025 alone, startups across the continent raised $1 billion, a 40% leap from the same period last year. This resurgence reflects growing investor confidence in Africa’s ability to deliver scalable, tech-driven solutions in critical sectors, from finance and mobility to health and real estate.
At the center of this momentum is a clear standout: Egypt. With a diverse portfolio of high-growth startups gaining traction across industries, the country is not only attracting large investments, it’s also redefining what a leading innovation hub in Africa looks like.
Egypt Takes the Crown: $330 Million Raised in Five Months
Leading the charge is Egypt, which has emerged as the continent’s top destination for startup capital in 2025. With $330 million secured across 16 deals, 11 of which were publicly disclosed, Egypt alone accounted for 31% of all startup funding in Africa during the first five months of the year. This marks a 130% increase in funding compared to the same period in 2024, a meteoric rise that sets a new standard for startup ecosystems across the continent.
The standout player in Egypt’s funding spree is Nawy, a property technology (proptech) company that secured $75 million, making it the highest-funded African startup in 2025 so far. The deal included a $52 million Series A round and $23 million in debt financing, underscoring investor confidence in the digital real estate sector, a space rapidly evolving in high-growth markets like Egypt.
Nawy’s Rise: A Glimpse Into Proptech’s Potential
Nawy’s platform digitizes the homebuying process, offering users access to thousands of listings, AI-powered matching, virtual tours and mortgage tools. In a country where real estate remains a trusted asset and urbanization is rapidly increasing, Nawy’s tech-first approach addresses a fundamental need: making property search and ownership more accessible and transparent.
The $75 million raised is not just a win for Nawy, it’s a testament to the appetite for digital transformation in traditionally offline sectors. For African entrepreneurs, this highlights a critical insight: high-impact innovation often lies in digitizing legacy industries.
Egypt’s Funding Powerhouses
Beyond Nawy, Egypt’s startup ecosystem showcased depth and diversity with several other landmark deals in May 2025. MNT-Halan, a fintech super-app, raised $50 million, reinforcing the continued investor interest in digital financial services. Valu, a buy-now-pay-later (BNPL) platform, secured $27 million from Saudi Arabian investors, emphasizing growing regional investor engagement. Thndr, a commission-free investment platform, raised $15.7 million, targeting retail investors in frontier markets. Slyndr, a mobility startup focused on used car transactions, closed a $15 million round, while MoneyFellows, a digital ROSCA (rotating savings and credit association) platform, attracted $13 million in pre-Series C funding.
Each of these startups not only demonstrates Egypt’s robust pipeline of high-growth ventures but also points to fintech, mobility and proptech as the continent’s most bankable sectors.
The Big Four Hold Strong
While Egypt led the way, the rest of Africa’s “Big Four” startup nations maintained strong performances. South Africa accounted for 26% of total funding, bolstered by deals like AURA, a health-tech startup that raised $15 million in a Series B round co-led by Partech and Cairo Angels Innovation Fund (CAIF). Nigeria, long a magnet for fintech investment, secured 15% of the continent’s total startup capital. Kenya, which started the year as the funding leader, captured 12%, although major deal activity has slowed in recent months.
From June 2024 to June 2025, African startups have raised over $2.5 billion, the highest 12-month total since early 2024. This record suggests that despite short-term fluctuations, the continent’s startup ecosystem is gaining long-term traction.
What This Means for African Entrepreneurs
For founders and startup teams across Africa, these numbers offer more than encouragement, they deliver actionable insight. Fintech remains the dominant sector but proptech, healthtech and mobility are rapidly emerging as attractive spaces for innovation and investment. Egypt’s success shows that leadership in the startup landscape is not reserved for the traditional tech hubs. With a supportive policy framework, strong investor networks and scalable business models, any African country can position itself as a startup powerhouse.
Investor appetite remains strong despite global economic uncertainty. The involvement of Saudi Arabian investors in Egyptian startups illustrates that the pool of available capital is expanding beyond traditional venture capital sources. Entrepreneurs should increasingly look to Gulf, European and intra-African investors as part of their fundraising strategy.
The broader narrative here is that African startups are proving they can not only survive but thrive. The continent’s innovators are digitizing essential sectors, creating jobs and attracting global capital in ways that are reshaping the economic future of Africa.
Though May 2025 saw a slowdown with $254 million raised across 39 disclosed deals, the year’s trajectory remains positive. African startup funding is not just recovering; it’s maturing. There are clear signs of greater sectoral diversity, regional participation and investor sophistication.
If Egypt’s breakout year tells one anything, it’s that Africa’s startup revolution is not a one-country story, it’s a continental awakening. And for entrepreneurs ready to build bold, scalable, tech-enabled businesses, the moment to rise is now.
