African startups raise $174m as selective funding persists

African startups raised a combined $174 million in January 2026, continuing a fourth consecutive year in which funding levels reflect tighter investor caution across the continent.

The figures were released by Africa: The Big Deal, a platform that tracks disclosed startup funding deals of $100,000 and above. While the January total represents a notable decline from the $276 million raised during the same month in 2025, analysts say the data still signals resilience compared with earlier downturns.

Funding activity also came in well below the $263 million monthly average recorded over the previous year, underscoring a shift toward selective capital deployment. Even so, January’s total exceeded figures from January 2023 and January 2024, when African startups raised $106 million and $85 million, respectively.

Only 26 startups announced funding rounds of at least $100,000 during the month, just over half of the recent monthly average. The reduced deal count highlights investor preference for fewer transactions, often involving later stage companies with clearer paths to scale and profitability.

Africa: The Big Deal noted that month to month declines between December and January have become a recurring pattern, observed in 2023, 2024, and 2025. The January 2026 tally marks the lowest monthly deal count since at least 2020.

Egypt based fintech valU emerged as the top fundraiser after securing $64 million in debt financing from the National Bank of Egypt. The transaction reinforced Egypt’s continued strength in fintech despite the broader slowdown.

Nigeria’s mobility financing startup MAX followed with $24 million raised through a blend of equity and asset backed debt. Defence sector player Terra Industries secured $11.75 million to support infrastructure development and expansion plans.

Additional notable raises included $20 million by Egyptian fintech NowPay, a $15 million Series A for Moroccan proptech startup Yakeey, and $3.5 million in seed funding for Côte d’Ivoire based fintech Cauridor. The funds are expected to enhance payment systems and support regional expansion.

Beyond fundraising, January also saw significant merger and acquisition activity. Flutterwave acquired Nigerian open banking platform Mono in an all stock deal valued at approximately $30 million. The transaction places added attention on Flutterwave founder Olugbenga Agboola as consolidation accelerates within the fintech space.

Commit acquired tech talent startup Savannah, while Izili Group purchased Qotto, an off grid solar company operating in Benin and Burkina Faso. The acquisition expanded Izili’s presence to six African countries and strengthened its role in rural electricity access.