Nigeria reclaims Africa’s startup funding lead as investment hits $635m

Nigeria’s startups raised $635 million in the first nine months of 2026, reclaiming the country’s position as Africa’s leading destination for startup funding as investment declined sharply in Kenya and South Africa and capital shifted towards logistics and transport.

The amount was 2.6 times the $247 million raised in the same period of 2025 and the highest recorded for Nigeria between January and September since 2022, according to Africa: The Big Deal, a platform tracking African startups that raise at least $100,000.

Nigeria accounted for 37 percent of funding raised by startups headquartered in individual African countries, excluding pan-African ventures, its highest share since 2021.

Max Cuvellier Giacomelli of Africa: The Big Deal identified Nigeria’s resurgence as the major geographical development in the continent’s startup funding market, with the country attracting substantially more capital even as several other leading ecosystems recorded declines.

The rebound also distinguished Nigeria from other major startup markets, where fundraising activity weakened. However, the recovery was heavily influenced by a handful of large transactions, raising questions about whether the surge in investment will translate into broader access to capital for smaller businesses and early-stage founders.

The data showed that 77 Nigerian startups raised at least $100,000 during the period, up from 70 in the corresponding period of 2025. Nigeria was the only country among Africa’s four largest startup markets to record an increase in the number of funded ventures.

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Logistics overtakes fintech as Africa’s best-funded startup sector

Logistics and transport overtook fintech to become Africa’s largest recipient of startup funding, attracting $780 million in the first nine months of 2026, compared with $760 million for fintech.

The logistics sector accounted for 36 percent of total startup funding during the period, its highest share for any January-to-September period since tracking began. This compared with just seven percent in the same period of 2025.

Fintech, despite losing its position as the largest sector by funding, remained the leader by the number of startups raising at least $100,000, with 80 ventures securing funding.

Giacomelli said the shift towards logistics was largely driven by two companies, Spiro and Moove, which together accounted for approximately three-quarters of the sector’s funding.

Spiro, an electric motorcycle company, raised $345 million, while Moove, a mobility fintech company, secured $250 million. Their combined $595 million illustrates how a small number of large transactions can change the funding rankings of entire industries.

Without the two companies, Logistics and Transport startups would have raised approximately $185 million, broadly in line with previous years, according to Africa: The Big Deal.

The development is significant for Nigeria, where Moove’s $250 million fundraising contributed substantially to the country’s return to the top of the continental funding table.

The figures suggest that the sector’s record performance reflects the scale of individual transactions more than a broad-based increase in funding across logistics businesses.

Africa’s startup funding depends increasingly on a few large deals

Nigeria’s $635 million funding total was driven substantially by four companies: Moove, Flutterwave, Jumia and Yellow Card.

Moove raised $250 million, Flutterwave secured $100 million, Jumia attracted $50 million, while Yellow Card raised $40 million. Together, the four companies accounted for $440 million, or about 69 percent of Nigeria’s total startup funding in the first nine months of 2026.

This concentration presents a more complicated picture of Nigeria’s recovery. While the country attracted more capital than its continental rivals, a significant portion of the funding went to a small group of established businesses.

Giacomelli’s analysis of the continental market highlights the importance of distinguishing between headline funding totals and the number of companies actually securing investment. Nigeria’s increase in funded ventures provides evidence that its recovery extends beyond the largest transactions, but the concentration of capital remains significant.

The number of Nigerian startups raising at least $100,000 increased to 77, from 70 a year earlier. However, the figures do not show how much of the additional capital reached smaller ventures or companies at earlier stages of development.

The concentration of capital was also visible at the continental level. Nigeria, Egypt, Kenya and South Africa accounted for 85 percent of funding raised by startups headquartered in individual African countries, excluding pan-African ventures, compared with 83 percent in the first nine months of 2025.

Startups outside these four markets raised $260 million across 106 ventures in 19 countries, down 29 percent from a year earlier, when 133 ventures across 22 countries secured funding.

The pattern suggests that investment remains concentrated in established markets and companies able to attract substantial financing, leaving smaller ecosystems with a relatively limited share of available capital.

For Nigeria, the challenge will be to turn its stronger position into a deeper funding market where a wider range of startups can raise capital, rather than relying disproportionately on major transactions to sustain its lead.

Kenya, South Africa and Senegal lose investment momentum

Nigeria’s rebound contrasted with weaker fundraising across several other major African startup markets.

Kenyan startups raised $201 million in the first nine months of 2026, down 73 percent from the same period of 2025, while South Africa’s funding fell 58 percent to $182 million.

Egypt remained comparatively stable, attracting $445 million, up 10 percent year-on-year. The figures placed Egypt second behind Nigeria among the leading startup markets by funding raised during the period.

Giacomelli noted that Kenya’s figures require some context because Spiro, a major electric mobility company operating extensively in the country, is classified as a pan-African venture in Africa: The Big Deal’s database. Its funding is therefore not counted as Kenyan-headquartered startup funding.

Even with that classification adjustment, however, Kenya’s numbers remained substantially below their 2025 levels.

The number of startups raising at least $100,000 also declined across three of the four major markets. Kenya recorded 45 funded ventures, down 32 percent year-on-year, while Egypt had 40, a decline of 29 percent. South Africa recorded 34, down 36 percent.

For Kenya and South Africa, the figures represented their lowest January-to-September tallies of startups raising at least $100,000 since Africa: The Big Deal began tracking such transactions in 2021.

The weakness extended beyond the Big Four markets. Senegal, which raised $153 million in the first nine months of 2025, attracted just $5 million during the same period of 2026.

Elsewhere, Tanzania raised $53 million, largely driven by NALA’s $50 million debt facility. Côte d’Ivoire attracted $48 million, most of it from GoCab’s $45 million transaction, while Zambia raised $32 million. Ghana’s funding fell 58 percent to $21 million.

The divergent performances highlight the uneven distribution of startup capital across Africa. Nigeria and Egypt attracted larger funding totals, while several other markets experienced significant contractions in both the amount raised and the number of companies securing investment.

Women-founded startups remain shut out of investment capital

Despite a slight improvement in their share of funding, women-founded startups continued to receive a disproportionately small share of Africa’s startup investment.

Startups with at least one woman co-founder accounted for 28 percent of ventures raising at least $100,000 in the first nine months of 2026, representing 86 startups. However, they captured only 8.9 percent of total funding, compared with 8.5 percent in the same period of 2025.

The gap between participation and funding was also reflected in deal sizes. The median funding round for startups with at least one woman co-founder was $240,000, less than a third of the $750,000 median for startups with at least one man co-founder.

Startups with women-only founding teams raised a combined $16 million, representing less than one percent of total startup funding during the period.

Giacomelli’s analysis suggests that the concentration of capital in larger transactions is particularly disadvantageous for women-founded ventures, which tend to raise smaller rounds on average. When smaller cheques become scarcer, these businesses can be among the first to miss out on funding.

The figures for startups led by women as chief executives were similarly weak. These ventures raised $115 million, equivalent to 5.4 percent of total funding, up from 2.7 percent a year earlier. However, most of the increase came from Odyssey Energy Solutions, which raised $74 million in September.

Without that transaction, the share of funding going to startups with a woman CEO would have been closer to two percent.

The number of startups with a woman CEO that raised at least $100,000 fell to 46, down from 64 in the corresponding period of 2025 and the lowest January-to-September total since 2021. Only 10 of these ventures raised at least $1 million, compared with 13 a year earlier.

The figures point to a persistent challenge for Africa’s startup ecosystem: an increase in overall funding does not necessarily mean that investment opportunities are becoming more inclusive.

Energy and healthcare suffer steep funding declines

While logistics and transport attracted a record share of startup funding, energy and healthcare experienced some of the steepest declines.

Energy startups raised $187 million in the first nine months of 2026, down 74 percent from $721 million in the same period of 2025. The sector accounted for nine percent of total funding, its lowest share since 2021.

The decline followed a record year for energy startups in 2025, when the sector represented 32 percent of funding during the first nine months.

Giacomelli identified debt financing as a major factor behind the change in energy funding, underscoring how the composition of financing can affect comparisons between years.

Healthcare funding fell even more sharply, dropping 88 percent year-on-year to $21 million across 35 ventures, compared with $178 million in the first nine months of 2025. It was the lowest amount recorded for the period since Africa: The Big Deal began tracking startup funding in 2019.

The figures show that the decline was not limited to a single industry. While logistics benefited from two exceptionally large transactions, energy and healthcare recorded substantially lower funding totals.

However, the data alone does not establish whether the healthcare decline reflects weaker investor demand, fewer large transactions, changes in financing structures or a combination of these factors.

Climate technology continued to account for a substantial share of investment, representing 35 percent of total funding, compared with 39 percent in 2025. Because climate technology spans multiple sectors, its share overlaps with categories such as energy, mobility and other businesses.

The contrasting performances underline the importance of looking beyond total funding figures when assessing Africa’s startup economy. A relatively stable overall market can conceal substantial changes in which sectors attract investment and which struggle to raise capital.

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Africa’s startup funding outlook for the final quarter

African startups will need to raise another $1 billion in the fourth quarter to exceed the $3.2 billion recorded in 2025, according to Africa: The Big Deal.

Giacomelli said surpassing the previous year’s total remained possible, although it was far from guaranteed. The required fourth-quarter funding is slightly higher than the $930 million raised in the final quarter of 2025.

The outlook for equity funding is more favourable. Startups need another $466 million in equity deals to exceed the $1.9 billion raised in 2025, an amount below the $744 million recorded in the fourth quarter of last year and the $620 million raised in the final quarter of 2024.

Africa: The Big Deal’s analysis suggests that, barring an unusual development, 2026 could become the continent’s strongest year for startup equity funding since 2022, even if total funding does not surpass the previous year’s record.

For Nigeria, the final quarter will provide a further indication of whether the country can sustain its lead as Africa’s largest startup funding destination. Its performance so far has been supported by major transactions and an increase in the number of startups raising capital, but the durability of the recovery will depend on continued investment activity.

More broadly, the continental outlook will hinge on whether large funding rounds continue and whether capital reaches a wider range of startups beyond the handful of companies that have dominated the market.

Nigeria has regained the funding lead, but sustaining that position will require more than a strong nine-month total. The broader test for the country and Africa’s startup ecosystem is whether the rebound can translate into a deeper, more diversified and more inclusive funding market.