Grace Ashiru
African startups raised $110 million in April 2026, marking the lowest monthly funding total in more than a year, even as deal activity recovered slightly from March.
According to the latest data, 32 startups across the continent announced funding rounds of at least $100,000 during the month. These included equity, debt and grant deals, but excluded exits. The number of deals was higher than March’s 22, but still well below the average of 46 deals per month recorded over the previous 12 months.
The total amount raised, however, showed a sharper slowdown. April’s $110 million was the weakest monthly figure since March 2025, when African startups raised $52 million. It also fell far below the previous 12-month monthly average of $275 million.
The decline shows how uneven Africa’s startup funding recovery remains. Monthly totals can swing sharply depending on a few large deals, but April’s numbers still point to a cautious investment environment, with fewer companies attracting capital and overall funding volumes under pressure.
Looking at the broader picture, the market appears more stable. In the 12 months from May 2025 to April 2026, African startups raised $3.1 billion, excluding exits. That figure includes $1.7 billion in equity, $1.4 billion in debt and about $30 million in grants. The rolling annual total has stayed close to the same level since August 2025, helped largely by stronger debt financing.
April’s funding mix was also different from March. Equity accounted for $74 million, while debt made up $36 million. In March, the market was much more debt-driven, with $96 million in debt compared with $55 million in equity.
A small number of larger transactions carried much of April’s total. Egyptian fintech Lucky raised a $23 million Series B round, making it one of the month’s biggest equity deals. On the debt side, Gozem secured $15.2 million, while Victory Farms raised $15 million. Ethiopian electric mobility startup Dodai also announced $13 million in funding, made up of an $8 million Series A round and $5 million in debt.
The month also saw two acquisitions. Nigeria’s Bread Africa was bought by SMC DAO, reflecting continued consolidation in the country’s digital asset sector. In Egypt, waste recycling startup Cyclex was acquired by Saudi-Egyptian investment firm Edafa Venture.
For the first four months of 2026, African startups have raised $708 million across 124 deals of at least $100,000. Equity and debt have been almost evenly split, with $364 million raised through equity and $340 million through debt.
That marks a clear shift from the same period in 2025. Between January and April last year, startups raised $813 million across 180 deals. That means funding is down 13% year-on-year, while deal count has dropped by 31%.
The funding mix has also changed significantly. In the first four months of 2025, equity dominated, accounting for $652 million compared with $138 million in debt. In 2026, debt has played a much larger role in supporting overall totals.
The pattern is becoming clear: fewer African startups are raising capital, and debt is doing more of the work in keeping funding levels steady. While strong companies are still able to secure backing, the market remains selective, with investors focusing on fewer ventures and larger, more structured deals.
