Africa’s Tech Scene is Thriving: Funding and Mergers Lead the Way
Africa’s technology ecosystem is moving forward in 2025, as startups secure big investments and join forces to make a bigger impact. From mobile apps for money transfers to solar power for rural areas, African innovators are showing the world what’s possible. In a recent newsletter, Norrsken East Africa shared exciting updates on this growth, and we’re diving into the details to show how Africa’s tech scene is stronger than ever.
More Money, Bigger Moves
According to Norrsken East Africa, funding for African startups jumped by 40% in the first five months of 2025 compared to last year. This cash is helping companies grow fast, and many are teaming up through mergers or buyouts to reach more people. Here’s a closer look at some game-changing deals:
- LemFi and Pillar Team Up: LemFi, a UK-based app for sending money across borders, bought Pillar, a Nigerian startup offering credit cards. Together, they’re making it easier for Africans abroad to send money home and access credit, solving real problems for families and businesses.
- Miran and Welnes Create a Health App: In a merger between Egyptian and Saudi Arabian startups, Miran and Welnes joined forces to build a super-app for health and fitness. Miran brings wellness know-how, while Welnes adds tech to help users stay fit, aiming to make healthy living accessible across the Middle East and Africa.
- BioLite and Baobab+ Light Up Africa: BioLite took a majority stake in Baobab+, a company that sells solar kits in rural areas. This deal will bring clean, affordable energy to homes without electricity, powering lights and phones in remote communities.
- MaxAB-Wasoko Buys Fatura: MaxAB-Wasoko acquired Fatura, a platform that helps small shops in Egypt stock up online. This move makes it easier for store owners to get goods, with big investors like EFG Finance joining the team.
- Qardy’s Big Win: Egyptian fintech Qardy landed a $23M deal through a SPAC, a special company that raises money to buy startups. It’s Egypt’s first deal like this, helping Qardy grow its lending services for small businesses.
- Chowdeck Snags Mira: In Nigeria, Chowdeck, a food delivery app, bought Mira, a system that helps restaurants manage orders. This makes life easier for restaurant owners and improves food delivery for customers.
- Lesaka Grabs Bank Zero: In South Africa, Lesaka Technologies paid $5M for Bank Zero, a digital bank, to offer better banking tools for small businesses.
- SokoFund and Umurava in Kigali: These two Rwandan startups merged to help people find jobs and companies hire talent, meeting the growing need for skilled workers in tech.
New Ways to Fund Dreams
Startups are also finding creative ways to raise money. For example, Payaza in Nigeria raised ~$10M through something called commercial paper, a kind of short-term loan usually used by big companies. In Egypt, Tasaheel (part of MNT-Halan) issued a huge EGP 2.5 billion bond, showing that African startups are now playing in the big leagues of finance.
About Norrsken in Kigali
Norrsken House Kigali, opened in 2019, is Africa’s biggest hub for tech entrepreneurs, located in Rwanda’s vibrant capital. Founded by Niklas Adalberth (who also started the global fintech Klarna), Norrsken helps startups tackle big issues like poverty, health, and climate change. Its Kigali hub offers a lively workspace, seed funding, and an accelerator program for over 1,000 entrepreneurs. Through its $205M Norrsken22 African Tech Growth Fund, backed by leaders like Flutterwave’s Olugbenga Agboola, Norrsken invests in startups in fintech, education, and healthcare, building a brighter future for Africa.
Get Involved at Africa/Week 2025
Want to see Africa’s tech revolution up close? Africa/Week 2025 in Kigali this November brings together 500 founders, investors, and big thinkers to shape the continent’s future. Sign up to meet the people driving these exciting changes!
Follow Norrsken East Africa on LinkedIn, Instagram, and X for the latest on Africa’s tech scene.
About the Author: Richard Djarbeng is a curious explorer of Africa’s booming tech ecosystem, passionate about the startups and innovators shaping the continent’s future. Through his personal blog, Richard shares stories and insights on African tech, from fintech breakthroughs to sustainable solutions, connecting readers with the people and ideas driving change. When he’s not writing, he’s diving into the latest trends in tech and dreaming up ways to support Africa’s next big idea.