Africa’s startup ecosystem recorded over $2 billion in funding in 2025, according to new data from Briter.
- Africa’s startup ecosystem secured over $2 billion in funding in 2025, completing more than 500 deals.
- The year marked an increase in acquisitions, with over 35 strategic buyouts taking place.
- Challenges persisted as five prominent startups shut down, citing difficult market conditions.
- Key closures included Edukoya and Okra, both facing financial and operational setbacks.
Africa’s startup ecosystem recorded over $2 billion in funding in 2025, according to new data from Briter. More than 500 deals were completed, with a median deal size of $1 million, showing the growing appetite of investors despite a more cautious funding environment.
The year also saw 35+ acquisitions, a sign of increasing consolidation as exits and strategic buyouts gain momentum in the ecosystem. Still, 2025 has not been without setbacks.
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More than five startups shut down during the year, including some well-funded players that once held strong promise, pointing to the difficulties of building sustainably in Africa’s challenging business environment amid a tighter global capital market.
Together, the funding boom, rising acquisitions, and closures paint a picture of an ecosystem that is both expanding and recalibrating.
Below are African Startups that have shut down in 2025:
Edukoya
Nigerian edtech startup Edukoya closed its doors in February, just three years after raising Africa’s largest pre-seed round of $3.5 million in 2021. The company pointed to limited market readiness, poor connectivity, and restricted access to devices as major hurdles.
It also cited weak disposable incomes and broader macroeconomic headwinds that hindered mass-market adoption. Edukoya said it was ultimately ahead of its time and has opted to shut down operations, returning capital to its investors.
Okra
Okra, founded in 2019 to build APIs that allowed individuals to securely link their bank accounts to third-party applications, announced its shutdown in July.
The company was an early pioneer of open finance in Africa, initially raising $1 million in pre-seed funding from TLcom Capital, followed by a $3.5 million seed round led by Susa Ventures. In total, Okra secured more than $16.5 million in funding, indicating that it raised additional capital beyond its seed round.
Lipa Later
Kenyan fintech Lipa Later, founded by Eric Muli and Michael Maina, was placed under administration in March 2025, just three months after raising KSh1.36 billion ($9.88 million) in debt and equity to fund its Africa expansion.
Despite securing a total of $16.6 million from backers including Lateral Frontiers, 54 Collective, and GreenHouse Capital, the startup, which offered consumer credit and e-commerce solutions for merchants, struggled with funding shortfalls that ultimately forced its collapse.
Afristay
South African accommodation booking platform Afristay closed its business operations in early 2025. Afristay director Rupert Bryant said the company had significantly decreased in size by the end of 2023, with approximately 30 monthly bookings and two part-time staff members.
Medsafe
Nigerian pharmaceutical supply chain startup Medsaf shut down operations after struggling with outstanding debts, unsuccessful fundraising, and a failed acquisition attempt. Launched to tackle the widespread problem of fake and substandard medicines, the company had raised more than $7 million from investors, including Y Combinator and Techstars, according to startupgraveyard.
Bento Africa
Nigerian HR technology startup Bento Africa temporarily shut operations in February amid allegations of tax and pension irregularities. The shutdown comes after founder and CEO Ebun Okubanjo resigned and the company laid off its engineering team following protests over unpaid salaries.
