African start-ups raised a total of US$174 million in January 2026, through deals of US$100,000 and above, including equity, debt, and grants, according to Africa: The Big Deal, a platform monitoring continental start-up activity. While the total capital raised remains significant, the number of deals plunged to historically low levels, highlighting a challenging start to the year for early-stage ventures.
January’s total is sharply lower than US$276 million raised in the same month in 2025 and below the 12-month monthly average of US$263 million. Nonetheless, it surpasses the US$106 million and US$85 million recorded in January 2023 and 2024, respectively.
Record Low Deal Count
The more concerning trend is the number of start-ups funded. Only 26 African start-ups announced deals of at least US$100,000 in January, just above half the monthly average over the previous 12 months and the lowest tally on record since at least 2020. Max Giacomelli, author of the Africa: The Big Deal report, emphasized that January dips have occurred in past years, and a slow start does not necessarily signal a systemic decline in funding.
Notable Fundraisers
Among the largest deals, Nigerian mobility financing start-up MAX secured US$24 million in a combination of equity and asset-backed debt, cementing its position as one of Africa’s top-funded start-ups in January. The deal reflects continued investor appetite for asset-backed mobility and transport financing solutions across key African markets.
Egyptian fintech valU led the continent overall with a US$64 million debt facility from the National Bank of Egypt, underscoring fintech’s dominance in large-ticket funding. Other notable equity rounds above US$10 million included NowPay (Egypt, US$20 million), Yakeey (Morocco, US$15 million Series A), Terra Industries (defence, US$12 million), and Cauridor (Ivory Coast, undisclosed amount).
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Sectoral Trends
The January funding activity highlights continued fintech dominance, alongside investor interest in mobility, property technology, and defence sectors. The data indicates that while total capital remains substantial, funding is increasingly concentrated in established ventures with proven business models.
Consolidation and Exits
Although not included in the funding totals, the month also saw notable acquisition activity. Flutterwave acquired Nigerian fintech infrastructure start-up Mono in an all-stock deal valued at roughly $30 million, highlighting ongoing consolidation in payments and API infrastructure. Other acquisitions included Savannah (tech talent platform) by Commit, and Izili Group’s acquisition of off-grid solar provider Qotto.
The combination of lower deal flow and strategic consolidation suggests that Africa’s start-up ecosystem is maturing, with capital increasingly flowing to established players while mergers reshape emerging segments.
Outlook for Early-Stage Ventures
January’s historically low deal count may reflect seasonal moderation rather than structural decline, but the data signals potential headwinds for early-stage start-ups seeking initial institutional funding. Analysts and industry observers caution that investors are prioritizing ventures with established traction, revenue streams, and scalable business models, leaving first-time founders to navigate a tougher fundraising landscape.
As the ecosystem evolves, the challenge for African start-ups will be to balance innovation and market validation with investor expectations, while leveraging emerging trends in fintech, mobility, and industrial technology. Diversifying funding sources both through regional markets and strategic partnerships may prove critical to sustaining growth and attracting new investment in 2026.
