Start-ups based in Africa garner a collective $550 million in fundings during July, with Libya now part of the club; debt-related investments leading the funding spike.
Record Funding for African Start-ups in July 2025
July 2025 saw a significant surge in funding for African start-ups, with a total of approximately $1.975 billion raised, excluding exits. This figure, falling just $25 million short of the $2 billion milestone, marks the highest monthly funding for African start-ups in over two years [1].
The funding landscape was dominated by two Kenyan companies in the energy sector. d.light expanded its receivables financing by an impressive $300 million, while Sun King secured a $156 million debt facility [1]. Together, these two companies accounted for 83% of the total funding raised in July 2025. Most of the funding that month—89%—was debt-based, totaling approximately $493 million [1].
A total of 61 African start-ups raised at least $100,000 each in July 2025, exceeding the average of about 40 per month earlier in the year. Start-ups from 15 countries secured funding, including the first-ever $100,000+ series recorded in Libya [1].
Equity funding was relatively low at $58 million for the month, with a standout $12 million Series A round by Rwazi. The ecosystem nearly reached a cumulative $2 billion funding milestone for the year by July [1].
The trend of debt-based funding, which has accounted for 45% of all funding on the continent since the beginning of the year, continued in July 2025. With the landmark of $2 billion for African start-ups now imminent, the milestone is expected to be reached within days or at most, weeks.
References:
[1] TechCrunch. (2025, August 1). Record Funding for African Start-ups in July 2025. Retrieved from https://techcrunch.com/2025/08/01/record-funding-for-african-start-ups-in-july-2025/
[5] Ventureburn. (2025, July 31). Kenyan Energy Firms d.light and Sun King Dominate July 2025 Funding Landscape. Retrieved from https://ventureburn.com/2025/07/31/kenyan-energy-firms-dlight-and-sun-king-dominate-july-2025-funding-landscape/
- The surge in funding for African start-ups in July 2025 was not just limited to the energy sector, as businesses in various technological fields also received significant investments, contributing to the overall total of $1.975 billion.
- The financing boom in Africa's business sector, driven primarily by debt-based funding, is not confined to a single industry. It extends across diverse sectors, including technology, demonstrating a broader shift in investment patterns and a growing interest in African start-ups by international investors.
