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

Startup funding in Africa rebounded to $272 million in February 2026, as 40 companies raised capital across the continent, but the recovery was dominated by a handful of large deals, according to data from Africa: The Big Deal. The figure marks a sharp rise from $174 million in January and sits slightly above the $254 million monthly average recorded over the past year, yet six startups captured roughly 80% of February’s capital.

"40 startups across the continent raised more than $272 million last month through deals worth at least $100,000," the Africa: The Big Deal dataset reported in coverage by Ayodeji Adegboyega.

The month’s biggest transactions illustrate the concentration of investment. Electric mobility firm Spiro led the pack with $57 million in debt financing across two deals as it scales battery-swapping infrastructure and electric motorcycles. Egypt’s online grocery platform Breadfast raised $50 million in a pre-Series C round to expand its delivery and logistics network, while ride-hailing platform GoCab secured $45 million in combined debt and equity to grow operations in West Africa.

Largest deals

• Spiro — $57 million (debt financing across two deals)
• Breadfast — $50 million (pre-Series C)
• GoCab — $45 million (combined debt and equity)
• Terra Industries — $22 million (addition to a previously announced round)
• Enko Education — $22 million (debt financing)
• Lula — $21 million (financing from Dutch development finance institution FMO)

Debt financing played an outsized role in February, making up about 45% of funds raised, versus equity at 54%. The shift toward loans and structured products reflects a broader trend of startups turning to non-dilutive instruments as global venture capital becomes more cautious. Ayodeji Adegboyega’s report notes that tech investment slowed after the pandemic surge, pushing many companies to explore debt options to bridge growth without immediate equity dilution.

Regional distribution and country leaders

• West Africa accounted for 53% of total funding in February.
• North Africa received 24% and Southern Africa 21%.
• East Africa’s share fell sharply to just 3% of the month’s funding, down from roughly 34% of 2025’s annual funding.
• By country, Egypt led with $64 million, followed by Benin with $57 million, Côte d’Ivoire with $45 million, and South Africa with $44 million.

Overall, African startups have raised $446 million in the first two months of 2026 versus $417 million over the same period in 2025, suggesting activity has stabilised after a weak January. Nevertheless, the data underscores a persistent imbalance: a small number of larger, more established companies continue to attract the lion’s share of investment, leaving many smaller startups to compete for a shrinking pool of capital. The concentration of funding and the growing role of debt will shape fundraising strategies across the continent in the months ahead.