Africa startup funding rebounds to $272m in February but six companies dominate investment

Startup funding in Africa recovered in February 2026 after a weak start to the year, but most of the money went to only a handful of companies. According to data from Africa: The Big Deal, 40 startups across the continent raised more than $272 million last month through deals worth at least $100,000.

• Startup funding in Africa rebounded in February 2026 after a slow start to the year, reaching $272 million.
• However, most of the capital went to only a few companies, with six startups accounting for about 80% of the funding.
• Major deals included investments in Spiro, Breadfast and GoCab across mobility, e-commerce and ride-hailing sectors.
• The data suggests investor activity is stabilising but funding remains highly concentrated in larger startups.

The amount represents a strong increase from the $174 million recorded in January, when funding activity slowed sharply. February’s figure is also slightly above the $254 million average monthly investment recorded over the past year, suggesting investor activity picked up again.

However, the recovery was heavily concentrated.

Six startups alone accounted for about 80 per cent of the total funding raised in February, showing that investment in Africa’s tech ecosystem remains largely focused on a small group of larger and more established startups.

Biggest deals

Among the largest transactions was Spiro, which raised $57 million in debt financing across two deals. The company focuses on electric motorcycles and battery-swapping infrastructure, part of a growing effort to reduce fuel use and pollution in African cities.

Egypt’s online grocery platform Breadfast secured $50 million in a pre-Series C funding round as it looks to expand its delivery and logistics network.

Ride-hailing platform GoCab also announced $45 million in combined debt and equity financing to grow its operations in West Africa.

Other notable deals included Terra Industries, which added $22 million to a previously announced round.

Education provider Enko Education secured $22 million in debt financing, while South African fintech lender Lula raised $21 million from Dutch development finance institution FMO.

Startups turning to debt funding

The data also showed a shift in how startups are raising capital.

Equity investments, where investors receive ownership stakes in companies, accounted for 54 per cent of the funding raised in February.

Meanwhile, debt financing made up about 45 per cent, reflecting a growing trend where startups rely more on loans and structured financing as global venture capital funding becomes more cautious.

Tech investment around the world slowed after the surge seen during the pandemic years, making it harder for many startups to raise fresh equity capital.

West Africa leads funding

Regionally, West Africa attracted the largest share of startup investment, accounting for 53 per cent of the total funding raised in February.

North Africa followed with 24 per cent, while Southern Africa received 21 per cent.

By country, Egypt led the continent with $64 million in funding, followed by Benin with $57 million, Côte d’Ivoire with $45 million, and South Africa with $44 million.

East Africa’s share drops sharply

One of the biggest shifts in February was the sharp drop in investment flowing to East Africa.

The region attracted only three per cent of total startup funding during the month, despite being one of Africa’s most active startup hubs in recent years.

In 2025, East Africa accounted for about 34 per cent of all startup funding across the continent, making the February figure a significant decline.

Funding slightly ahead of last year

Despite the uneven distribution of capital, overall funding remains slightly stronger than last year.

African startups have now raised more than $446 million in the first two months of 2026, compared with $417 million during the same period in 2025.

The figures suggest that while investor activity has stabilised after a slow start to the year, Africa’s startup ecosystem remains highly dependent on a small number of large deals.