From January to September 2026, African startups secured $2.16 billion in funding, excluding exits, marking a 4% decline compared to the $2.24 billion raised during the same period in 2025.
While equity funding surged to $1.5 billion, reflecting a 23% year-on-year increase, debt funding plummeted by 33% to $669 million from approximately $1 billion.
Funding Trends and Notable Deals
Debt’s proportion of total funding shrank to around 31%, down from 45% the previous year. In July, 44 startups collectively raised $102 million, with a mere $25 million attributed to equity, the lowest monthly equity figure since April 2019.
Notable deals included M-KOPA’s $30 million senior debt facility from FMO, the Dutch development bank, aimed at financing electric motorbikes in Kenya, and Bridgement’s $20 million raise. Several substantial equity rounds later in the year helped offset earlier shortfalls.
Paymentology secured $175 million in May, co-led by Apis Partners and Aspirity Partners. Spiro followed with a $215 million equity round from Impact Fund Denmark and Equitane, supplemented by an additional $55 million from NewTrails Capital, a Chinese growth fund.
August emerged as the most lucrative month, with total funding reaching $438 million. Moove’s $250 million Series C round, led by Mubadala, Woven Capital (Toyota’s growth fund), and Ion Pacific, valued the company at $2.1 billion.
Jumia raised $50 million, with $25 million anchored by the IFC and participation from existing shareholder Axian. Yellow Card secured $40 million from investors including SC Ventures, Sony Innovation Fund, Polychain Capital, and Blockchain Capital.
Late-stage companies dominated equity funding, while early-stage founders increasingly relied on government grants, fellowships, and modest Web3 investments. Over the 12 months ending in September, startups amassed approximately $3.1 billion.
Rolling equity climbed to $2.2 billion, up from $1.8 billion, reaching its highest point in three years. Despite a decline in debt funding this year, it remains a more significant component of the ecosystem compared to pre-2023 levels.
The full-year target is now $3 billion. Funding could get close if the last quarter follows recent patterns, and one late mega-round would put it within reach.
