DFP Africa Startup Brief (December 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. Japanese Investment in Africa
Asahi Acquires a Majority Stake (65%) in Diageo’s Kenyan Spirits Business
Asahi announced the $2.3B deal agreement with Diageo on 17 December 2025. The transaction involves the acquisition of 65% of EABL’s beer business and UDVK’s spirits business, with a total implied valuation of $4.8B, making it the largest M&A transaction ever recorded in East Africa.
Strategic Context
- Diageo: Divesting non-core assets to reduce net debt by approximately 25% and strengthen its balance sheet
- Asahi: Japan’s leading brewer making its first large-scale investment in Africa’s beer market, with Kenya, Uganda, and Tanzania as priority growth markets
- Implications: Signals a broader Asia–Africa pivot in the beverages sector, preserving local brands while injecting Japanese capital and operational expertise to support growth
2. African Startup Fundraising Trends (Based on Disclosed Transactions)
Renewable Energy Dominates Fundraising for the Second Consecutive Month
（１）December, 2025
[Overview]
In November, 17 startups across 9 countries raised funds. Renewable energy sector dominated fundraising by capital volume with USD 140 million, driven by 2 landmark deals in Kenya and Nigeria. Fintech remained the most active sector by deal count with 4 deals. By funding stage, debt financing was the largest funding type overall, with four deals totaling USD 115.5 million, while Series A rounds were also notable, with five transactions. Early-stage rounds across fintech, mobility, agritech, and AI kept the pipeline diverse, reflecting continued investor appetite for innovation across Africa’s startup ecosystems.
[Facts]
Total funding:
USD 194.4 million
17 startups across 9 countries
By Country:
Big 4 (10 startups, USD 170.5 million total)
Others (5 countries, 7 startups, USD 23.9 million total)
Major funding rounds:
・Lagride (Nigeria, Renewable Energy): Debt, USD 100 million
・Sun King (Kenya, Renewable Energy): Equity, USD 40 million
・Nawah Scientific (Egypt, Biotechnology): Series A, USD 23 million
Investments by Japanese investors:
Ghana/ Carepoint (Healthtech): USD 3 million/ Debt
Investors: JICA
（２）Cumulative Figures for 2025
Total Funding (Publicly Disclosed):
Total funding: USD 2.94 billion (up 37.4% YoY)
Number of deals: 319 deals (down 60.8% YoY)
Top 5 Deals in 2025
- d.light (Kenya, Renewable Energy, Debt): USD 300 million
- Sun King (Kenya, Renewable Energy, Debt): USD 156 million
- Wave (Senegal, Fintech, Debt): USD 137 million
- Spiro (Kenya, E-mobility, Undisclosed): USD 100 million
- Lagride (Nigeria, Renewable Energy, Debt): USD 100 million
3. African Startup M&A Activity (Based on Disclosed Transactions)
Bolttech, a Singapore-based insurtech unicorn, strengthens its presence in Africa through acquisition
In December 2025, 4 M&A deals were reported.
Cumulatively, from January to December 2025, a total of 78 deals were recorded — a 98% increase year-on-year (see chart below).
Contact
Double Feather Partners Inc.
Insights & Strategic Planning Department –
Albert Mbithi, Emma Kiserema <insight@doublefeather.com>
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.