African startups raised $174 million in January 2026, a figure that marks a sharp decline compared to the $276 million recorded in January 2025.
According to data published by the specialized platform Africa: The Big Deal, only 26 startups announced fundraising during the month.
The platform refers to a “historically low level”, the lowest observed since at least 2020 and one that represents barely just over half of last year’s monthly average.
In its report, Africa: The Big Deal points out that this volume also remains below the monthly average of $263 million recorded over the past twelve months.
Admittedly, the amounts raised in January 2026 are still above the very low levels seen in January 2023 ($106 million) and January 2024 ($85 million). But beyond the overall volume, it is especially the decline in the number of closed deals that draws attention.
More specifically, the market remains driven by a very limited number of sizable deals.
The main fundraising rounds of the month were secured by the Egyptian fintech valU, which obtained $64 million in debt from the National Bank of Egypt, and by the Nigerian mobility startup MAX, which raised $24 million.
Aside from these two major operations, only four other companies have surpassed the 10-million-dollar threshold. These are NowPay in Egypt (fintech, 20 million dollars), Yakkey in Morocco (proptech, series A of 15 million dollars), Terra Industries in defense (12 million dollars), and Cauridor in Côte d’Ivoire, also positioned in fintech.
As a result, funding continues to concentrate on the continent’s most mature ecosystems, Egypt, Nigeria, Morocco, and to a lesser extent, some West African markets, while a large part of the other African countries remain almost absent from major deals.
The market thus appears increasingly polarized, with a handful of dominant hubs capturing the bulk of capital.
On the divestment side, not included in the previously mentioned funding amounts, three notable transactions were announced in January.
The fintech Flutterwave acquired Mono in Nigeria for about 30 million dollars, in an all-stock transaction.
Lastly, the startup Savannah, specialized in recruiting tech talent, was acquired by Commit, while Izili Group took over Qotto, an off-grid solar player.
