Nigeria Leads Africa in Startup Funding With $635 Million in Nine Months

What changed

African startups raised about $2.16 billion in the first nine months, down roughly 4% from $2.24 billion a year earlier. Nigeria led the continent with $635 million, while logistics and transport overtook fintech as the biggest funding sector by value.

The mix shifted sharply:

• Equity investment rose 23% to about $1.5 billion.
• Debt financing fell 33% to $669 million.

Why it matters

This was a smaller funding market, but not a uniformly weaker one. Investors put more money into ownership stakes while pulling back on debt, suggesting that companies needing capital may increasingly have to trade equity for runway rather than rely on loans.

The sector change is the more revealing signal. Logistics and transport companies now account for more funding than fintech companies, putting the practical machinery of moving goods and people ahead of the continent’s most established startup category.

Nigeria’s $635 million lead also means the downturn was not spread evenly. Capital remained available at scale, but it was concentrated in particular companies, sectors and financing structures. That makes the headline total less useful than the allocation underneath it: investors are still willing to back African startups, but they are becoming more selective about where and how they do it.