Africa-Press – Botswana. After July’s fundraising frenzy, August proved a more subdued month for Africa’s startup ecosystem. The continent’s entrepreneurs secured $93m across 33 deals worth more than $100,000, marking the second-quietest month of 2025 after March’s trough.
Yet the apparent lull masks underlying resilience. August’s haul exceeded the same month in 2024, while the number of companies securing funding matched recent years. More tellingly, 2025’s cumulative figures continue to outpace historical trends, suggesting the summer slowdown reflects seasonal rhythms rather than structural weakness.
The month’s standout deals reveal Africa’s maturing venture landscape. Nigeria’s Chowdeck, a food delivery platform, raised $9m in Series A funding, while Kenya’s refrigeration startup Koolboks secured $11m—a particularly notable achievement given the company’s origins in the GSMA Innovation Fund. Egypt’s Breadfast, already established in the quick-commerce space, topped up with a $10m Series B2 round.
Geography followed familiar patterns. Egypt, Kenya and Nigeria—the continent’s “big three” startup hubs—captured three-quarters of total funding. But sectoral distribution proved more democratic, with five industries each claiming at least 10% of August’s total, suggesting diversification beyond the usual fintech dominance.
Debt financing played a larger role than typical, accounting for roughly a quarter of the total. This included a securitised bond worth more than $9m issued by Egypt’s valU, signalling growing sophistication in financing structures.
The month also witnessed notable exits. South African payments processor iKhokha was acquired by Nedbank for over $93m, providing a welcome liquidity event for investors increasingly focused on returns after years of growth-at-all-costs.
While August’s figures may disappoint those expecting perpetual expansion, the broader trajectory suggests Africa’s startup ecosystem is maturing rather than stalling. The real test will come in the final quarter, when many investors traditionally deploy remaining capital.
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