Funding Slump: African Startups Raise KSh 23.77B ($183M) in October, Down 58% on Last YearFunding Slump: African Startups Raise KSh 23.77B ($183M) in October, Down 58% on Last Year
Key Highlights
- African startups raised KSh 23.77B ($183M) in October, down 58% on a year earlier, as funding across the continent stayed subdued for another month.
- Just 34 startups raised rounds of at least KSh 12.99M ($100,000), against a 12-month average of 43, while climate technology took 55% of funding.
- January to October funding reached KSh 311.76B ($2.4B), down 12%, and the count of funded startups is the lowest for the period since 2021.
African startups raised KSh 23.77B ($183M) across 34 companies in October, 58% less than a year earlier, as the continent's funding slump deepened.
The figure is 58% below the KSh 56.51B ($435M) raised in October 2025 and 24% below September's KSh 31.31B ($241M), according to Africa: The Big Deal, which tracks rounds of at least $100,000 (about KSh 12.99M). It is also 29% below the 12-month monthly average of KSh 33.64B ($259M), a sign that the slowdown is not a single bad month.
Who got the money
Equity made up KSh 14.29B ($110M), or 60% of the total, while debt contributed KSh 9.22B ($71M), or 39%. Grants were only about KSh 260M ($2M). Climate technology companies took 55% of all funding in the month.
Nigeria led by country with KSh 5.46B ($42M) across nine startups, mostly debt in energy and mobility. Morocco and Tanzania each recorded KSh 5.20B ($40M): Moroccan healthcare startup ABA Life raised KSh 5.20B ($40M) from Admaius Capital Partners, and Tanzanian agritech East Africa Foods raised a KSh 5.20B ($40M) Series B from investors including InfraCo Africa, Oikocredit and FMO. Egypt followed with KSh 2.47B ($19M) and Senegal with KSh 1.69B ($13M).
Kenya does not appear among the countries named in the October data. Africa's four biggest markets accounted for 46% of the funding, the lowest monthly share since November 2022, though they still produced 26 of the 34 qualifying startups.
Debt deals and exits
Several of the larger cheques were loans rather than equity. Egyptian fintech ValU issued a KSh 2.21B ($17M) bond, Senegalese renewable energy company Afreenergy Solar raised KSh 1.69B ($13M), Finnfund lent KSh 1.43B ($11M) to Bisedge, and the EBRD lent KSh 1.30B ($10M) to Nigerian energy technology company Beacon Power Services.
There were four exits in October, including the initial public offering of MNT-Halan on the Egyptian Exchange, which valued the company at about KSh 181.86B ($1.4B). Year to date there have been 38 exits, against 42 in the same period of 2025.
A weaker year, with a hard November and December
From January to October, African startups raised KSh 311.76B ($2.4B), down 12% from KSh 350.73B ($2.7B) a year earlier. Debt fell 33% to KSh 96.13B ($740M), while equity rose 5% to KSh 207.84B ($1.6B). A total of 343 startups raised at least KSh 12.99M ($100,000), down 22% from 438 and the lowest count for the period since tracking began in 2021. Active investors fell 16% to more than 370.
Matching 2025's full-year total of KSh 415.68B ($3.2B) would need KSh 105.74B ($814M) in November and December, against KSh 64.43B ($496M) in those months last year, a repeat the reported data describes as unlikely. For Kenyan founders, the data is a reminder that capital is concentrating in a few deals and markets.
Mwenendo earlier reported on how Nigeria reclaimed the funding lead with four large deals, while Kenyan startups raised only KSh 26.1B ($201M) in nine months. As Mwenendo earlier reported, third-quarter funding rebounded strongly, which makes October's drop sharper.
In Summary
- Who reported the figures?
- Africa: The Big Deal, which tracks African startup rounds of at least $100,000.
- What did African startups raise in October?
- KSh 23.77B ($183M) across 34 startups, down 58% from KSh 56.51B ($435M) in October 2025.
- When was the data released?
- 6 November 2026, covering October 2026.
- Which countries led?
- Nigeria with KSh 5.46B ($42M), then Morocco and Tanzania with KSh 5.20B ($40M) each. Kenya was not named.
- Why does it matter?
- January to October funding of KSh 311.76B ($2.4B) is down 12%, with the fewest funded startups for the period since 2021.
- How was the money raised?
- Equity was 60%, debt 39% and grants about 1%; climate technology took 55% of funding.