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Nigeria leads Africa startup funding race with $635m in nine months

Captures 37% of continental funding as Kenyan and South African fundraising contracts

by Onome Amuge
October 21, 2026
in Frontpage, Technology
Nigeria leads Africa startup funding race with $635m in nine months

Nigerian startups attracted $635 million in the first nine months of 2026, more than 2.5 times the $247 million raised in the corresponding period of 2025, reclaiming the continental lead as fundraising weakened sharply in Kenya and South Africa.

Data from Africa: The Big Deal, an African startup funding tracker, showed that four Nigerian companies including Moove, Flutterwave, Jumia and Yellow Card, raised a combined $440 million during the nine-month period, accounting for about 69 percent of the country’s total.

Moove, the mobility financing company, raised $250 million, while fintech firm Flutterwave secured $100 million. E-commerce company Jumia attracted $50 million, and cryptocurrency infrastructure provider Yellow Card raised $40 million.

The concentration raises questions about the depth of Nigeria’s funding recovery, particularly as global venture investors continue to scrutinise profitability, cash generation and the commercial viability of businesses operating in emerging markets.

Nevertheless, Nigeria’s performance extended beyond the largest transactions. The country recorded 77 startups raising at least $100,000 during the period, up from 70 a year earlier and the highest number among African markets tracked by Africa: The Big Deal.

Excluding pan-African ventures, Nigeria accounted for 37 percent of funding raised by country-specific startups across the continent, its highest share since 2021.

 

At $440 million, the combined proceeds of the four largest Nigerian transactions represented nearly seven-tenths of all startup funding recorded in Nigeria between January and September. The remaining $195 million was spread across other transactions.

This concentration is considered notable because headline funding totals can fluctuate significantly when a small number of companies complete major financing rounds. A country can therefore lead the rankings in a particular period without necessarily experiencing a comparable expansion in funding available to early-stage businesses.

Nigeria’s increase in the number of funded startups offers a counterpoint to that concern. The 10 percent rise in ventures securing at least $100,000 indicates that capital continued to reach a wider group of businesses, even as large deals dominated the aggregate figures.

Moove’s $250 million raise is particularly significant in this context because of the company’s exposure to Nigeria’s mobility market. The company announced plans to exit Nigeria earlier in October, according to reports, underscoring the distinction between the amount of capital a business raises and the strength of its commercial position in any individual market.

Logistics overtakes fintech in Africa’s funding hierarchy

Nigeria’s resurgence coincides with a broader change in the sectors attracting capital across Africa.

Logistics and transport startups raised $780 million between January and September 2026, marginally exceeding fintech’s $760 million, according to Africa: The Big Deal. The figures represented 36 percent and 35 percent of total startup funding, respectively.

The shift marks a departure from the pattern of the past seven years, during which fintech generally occupied the leading position by funding value.

Logistics and transport accounted for only 7 percent of African startup funding in the corresponding period of 2025. Its share has now reached a record for the first nine months of a year, surpassing the previous high of 17 percent recorded in 2019.

However, the sector’s lead also reflects significant concentration. Electric mobility company Spiro raised $345 million, while Moove secured $250 million. Their combined $595 million accounted for approximately 76 percent of the sector’s total funding.

Fintech, meanwhile, continued to lead by deal breadth, with 80 startups raising at least $100,000 during the period.

Nigeria’s rise was amplified by a pronounced slowdown in two of Africa’s other major startup markets.

Kenyan startups raised $201 million in the first nine months of 2026, down 73 percent from the corresponding period of 2025, while South African ventures secured $182 million, a decline of 58 percent. Egypt remained comparatively stable, attracting $445 million, up 10 percent year-on-year.

Kenya’s funding figures were partly affected by the classification of Spiro as a pan-African venture, despite its extensive operations in the country. Even with that adjustment, fundraising remained substantially below its 2025 level.

The decline extended beyond aggregate funding. Kenya recorded 45 startups raising at least $100,000, down 32 percent year-on-year, while Egypt had 40, down 29 percent. South Africa recorded 34, a fall of 36 percent.

The counts for Kenya and South Africa were their lowest for the first nine months of a year since Africa: The Big Deal began tracking deals of at least $100,000 in 2021.

Together, Nigeria, Egypt, Kenya and South Africa accounted for 85 percent of funding raised by country-specific startups, excluding pan-African ventures, compared with 83 percent in the corresponding period of 2025. The increase points to a modest further concentration of investment among the continent’s four leading startup markets.

Nigeria’s latest performance marks a reversal of the pattern established after 2022, when the country began losing ground to Kenya in the continental funding rankings.

In 2023, Kenyan startups raised about $800 million, leaving Nigeria behind. Nigeria continued to trail in 2024, when its startups raised roughly $400 million despite significant transactions involving Moove and Moniepoint.

The pattern persisted in 2025, when Nigerian startups raised $442.8 million for the full year.

By attracting $635 million in just nine months of 2026, the country has already exceeded its 2025 annual total, putting it in a strong position to finish the year as Africa’s leading startup funding destination.

Onome Amuge

Onome Amuge serves as online editor of Business A.M, bringing over a decade of journalism experience as a content writer and business news reporter specialising in analytical and engaging reporting. You can reach him via Facebook ,X and  LinkedIn

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