DFP Africa Startup Brief (June 2025)

Africa’s startup ecosystem often remains opaque to outside observers. The DFP Africa Startup Brief delivers curated updates on their fundraising, M&A activity, and other key developments—based on firsthand information gathered on the ground by DFP staff based in Africa—accompanied by expert commentary and analysis.

1. African Startup Fundraising Trends (Based on Disclosed Transactions)

（１）June 2025

Another noteworthy deal was the JPY 1.5 billion (~USD 9.4 million) Series A investment in Peach Cars, a used car marketplace, by Suzuki Global Ventures, Gougin Capital, JBIC, and UTEC (The University of Tokyo Edge Capital Partners). Peach Cars is a startup that offers a “trusted used car purchasing experience” by comprehensively covering every aspect of what has traditionally been a high-risk peer-to-peer used car transaction — from inspection (288 check points), transparent pricing, maintenance, and financing to after-sales support.

In the first half of 2025 (January–June), African startup fundraising reached a total of USD 1,334 million, marking a 66% increase compared to the same period last year. In contrast, the number of deals during this period decreased significantly to 148, representing a 68% YOY decline.

When looking at the average deal size (ticket size), it has continued to rise since hitting the lowest in Q2 2024. Compared to the same period last year, ticket sizes have expanded across all funding stages except for Series B. (Note: Series B figures are more susceptible to individual deal effects due to the limited number of transactions.) This trend aligns with the global shift in the venture capital industry toward fewer but “higher conviction bets,” suggesting that investors are becoming more selective in Africa as well.

2. African Startup M&A Activity (Based on Disclosed Transactions)

In June 2025, 11 startup-related M&A deals involving African startups were reported, bringing the year-to-date total to 46 transactions—marking a 91% YoY increase.

Case	Commentary by DFP
Announced: June 2, 2025 Acquirer: Moniepoint (Nigeria, Fintech) Acquiree: Sumac Microfinance Bank (Kenya, Financial Services) Deal Value: Undisclosed	Nigeria’s leading fintech unicorn, Moniepoint, acquired a 78% stake in Kenya’s mid-sized Sumac Microfinance Bank, marking a rapid entry into the Kenyan market.
Announced: June 3, 2025 Acquirer: dLocal (Uruguay, Fintech) Acquiree: AZA Finance (Kenya, Fintech) Deal Value: USD 150 million	Uruguayan fintech unicorn dLocal, a cross-border payment platform, acquired Kenya-based AZA Finance to strengthen its cross-border payment and FX capabilities in Africa, further solidifying its position as a global payments leader.
Announced: June 10, 2025 Acquirer: First Ally Capital (Nigeria, Financial Services Group) Acquiree: Migo (Nigeria, Fintech) Deal Value: Undisclosed	Nigeria’s First Ally Capital acquired a 60% stake in Migo, integrating its AI-driven credit scoring technology to enhance expansion in the financial inclusion sector.
Announced: June 10, 2025 Acquirer: Solar Panda (Canada/Kenya/Senegal, Renewable Energy) Acquiree: VITALITE Zambia (Zambia, Renewable Energy) Deal Value: Undisclosed	Solar Panda, which offers off-grid solar solutions through a pay-as-you-go model, acquired VITALITE Zambia. This enables immediate entry into Southern Africa, adding over 100,000 existing customers.
Announced: June 11, 2025 Acquirer: Creditchek (Nigeria, Fintech) Acquiree: Creditcliq (USA, Fintech) Deal Value: Undisclosed	A Nigeria-based B2B credit data platform has acquired 100% of a U.S.-based company founded by a Nigerian entrepreneur that translates and transfers international credit histories for immigrants. The acquisition aims to promote financial inclusion for immigrant communities by enabling them to carry over their credit records from their home countries.
Announced: June 17, 2025 Acquirer: LemFi (Canada/Nigeria, Fintech) Acquiree: Pillar (UK, Fintech) Deal Value: Undisclosed	LemFi, a Nigerian-founded fintech serving immigrants, acquired 100% of UK-based Pillar. By leveraging Pillar’s credit scoring technology and credit card issuance licenses, LemFi is expanding its services from remittances to credit, marking a step toward becoming an “all-in-one super app” for immigrants.
Announced: June 17, 2025 Acquirer: ACKWEST Group (USA, Holding Company) Acquiree: Safiyo (South Africa, Market Research) Deal Value: Undisclosed	ACKWEST Group, established in 2024 as a first-party data research company, acquired 100% of South Africa’s Safiyo, which operates in 15 African countries. The deal provides ACKWEST with extensive local data access across Africa, significantly enhancing its data capabilities in emerging markets.
Announced: June 18, 2025 Acquirer: iSchool (Egypt, Edutech) Acquiree: SEEDS (Saudi Arabia/Egypt, Edutech) Deal Value: Undisclosed	An Egypt-based education platform targeting K–12 students has acquired the EdTech division of a Saudi Arabian software company. By gaining access to the acquired company’s curriculum and teacher network, the platform is able to accelerate its expansion into the Saudi market.
Announced: June 23, 2025 Acquirer: Chowdeck (Nigeria, Food Delivery) Acquiree: Mira (Nigeria, Software) Deal Value: Undisclosed	Chowdeck, a delivery platform, acquired 100% of Mira, a provider of POS solutions for restaurants (covering sales, inventory, orders, and payments). This positions Chowdeck to evolve from a delivery service to a comprehensive food tech company supporting restaurant operations.
Announced: June 25, 2025 Acquirer: BAS Group (Nigeria, Financial & Investment Services) Acquiree: Zuvy Technologies (Nigeria, Fintech) Deal Value: Undisclosed	BAS Group acquired a majority stake in Zuvy Technologies, a fintech company providing invoice-based lending solutions for SMEs. This enables BAS Group to offer unsecured, invoice-backed financing and expand its SME-focused financial services.
Announced: June 27, 2025 Acquirer: Lesaka Technologies (South Africa, Fintech) Acquiree: Bank Zero (South Africa, Digital Bank) Deal Value: USD 61.4 million	Lesaka Technologies, a fintech startup focused on underbanked populations in Southern Africa, acquired 100% of Bank Zero, an app-based digital bank. With Bank Zero’s banking license, Lesaka can now accept deposits and evolve from a fintech providing payments and lending into a comprehensive financial services group.

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Disclaimer

This document has been prepared by Double Feather Partners Inc. solely for informational purposes and does not constitute an offer, solicitation, or recommendation to purchase, sell, or hold any specific securities, financial products, or investment strategies. The opinions, forecasts, and views expressed herein reflect the judgment of the author(s) at the time of publication and are subject to change without notice. While efforts have been made to ensure the accuracy and completeness of the information contained in this report, no guarantee is provided. Readers are advised to make investment decisions at their own discretion and responsibility.