Editor’s note: African-Startups is a sister publication of EU-Startups, bringing trusted coverage of startups, venture capital, and innovation across Africa.
African startups closed the first half of 2026 with $1.44 billion in funding, slightly surpassing the $1.42 billion raised in the same period last year. The numbers look similar, but with fewer deals and more capital, the market is changing.
According to TechCabal Insights, just 146 disclosed deals accounted for that $1.44 billion, down from 252 deals in the first half of 2025 which raised less funding overall.
What the data shows is more money, fewer bets. Rather than spreading smaller investments across the ecosystem, investors are doubling down on companies they already believe in.
Roughly half of the total amount raised in H1 went to just seven startups.
Leading the pack was Spiro, Africa’s largest electric vehicle (EV) company, which secured $320 million across a series of landmark rounds between February and June — the most capital raised by any single company in H1 2026.
In February, the company announced a $50 million debt funding from Afreximbank and two other investors managed by Cygnum Capital. This was followed by a record $215 million equity raise on 1 June 2026, to scale electric mobility and energy infrastructure across Africa. Just three weeks later, the company secured another $55 million in equity from Chinese fund NewTrails Capital. Yufan Zhang, the firm’s founding partner, cited Spiro’s “potential to grow into an infrastructure-like business that creates meaningful commercial, social, and environmental value.”
Other startups across climatetech, fintech and mobility also closed sizable rounds.
SolarAfrica, for instance, secured roughly $94 million in debt funding for utility-scale solar expansion across South Africa, while Côte d’Ivoire’s GoCab raised $45 million to accelerate inclusive mobility on the continent.
In fintech, Egyptian point-of-sale platform Blnk, raised $37.1 million through a combined debt and equity package, part of a broader surge that saw Cairo-based companies secure some of the sector’s largest funding rounds.
Blnk’s mixed financing package reflects how African startups are raising money, with debt emerging as a “huge tool for survival” in the words of Joseph Oloyede, an analyst at TechCabal Insights.
However, debt proportions do vary from quarter to quarter. Of the $749 million raised in the first quarter of 2026, about 55% came from debt financing. That share dropped in Q2, with debt accounting for $197 million, or 28.4% of the $692 million raised. Even so, H1 debt financing grew 37% year-on–year, from $448 million in 2025 to $614 million in 2026.
Rather than relying solely on equity, African startups are increasingly utilizing debt to scale operations and extend their runway without diluting existing equity.
H1 2026 also marked a record half-year for mergers and acquisitions. A total of 63 M&A deals were recorded — more than double the 29 deals tracked in H1 2025 and the highest tally in African startup history.
In January, Flutterwave announced its acquisition of open banking firm Mono, while Algeria’s Yassir bought Kawarizmi, a Paris-based adtech company.
For years, fintech dominated Africa’s startup funding landscape. But H1 2026 could mark a turning point in this regard.
Driven by Spiro’s record-breaking raises alone, logistics and transport emerged as the dominant sector by total capital raised — a first for the continent.
South African EV infrastructure startup Zimi Charge also contributed to the momentum, securing a 50 million Rand (about $2.6 million) equity round in June.
Whether this shift marks a lasting trend or a one-off occurrence shaped by Spiro’s mega-deals will become clearer in the second half of the year.
About the Author
Uche Nneoma is a freelance technology reporter at Espacio Media Incubator with a background in engineering. Her work has appeared in Forbes, International Business Times, FreeCodeCamp, HackerNoon and others. She’s based in Lagos, Nigeria.
