Venture funding into African startups saw a surge in February as startups across the continent raised $272 million in equity, debt and grants. This is according to data from African startup funding analytics company, Africa the big deal.
The February total is a vast improvement from the $174 million raised in the previous month of January, representing an impressive increase of 56.3 percent. This is also a huge improvement from the $119 million raised in the same month last year (2025), which is a massive increase of 128.5 percent.
The impressiveness of the number is also reflected in the fact that it is 7 percent more than the average of $254 million over the last 12 months. It's also impressive in that it puts 2026 ahead of 2025 by two months, despite the slow start.
So far, startups have raised $446 million after the first two months of 2026, which is about 7 percent more than the first two months of 2025.
With March 2025 being one of the worst venture funding months ever, analysts expect 2026 to maintain its lead at least for the near future.
Of the $272 million raised in February, 54 percent (about $146.9 million) came in the form of equity. 45 percent ($122.4 million) came in the form of loans, while one percent (about $2.7 million) came in the form of grants.
Startup funding: Spiro, Breadfast, Terra ahead in February race
Overall, 40 African startups that raised $100,000 or more led the month's tally.
The group is led by Benin-based Spiro, which Closes $57M debt funding round Led by Afreximbank, Nitheo and Africa Go Green Fund joined as new investors. This means the e-mobility company has now raised $157 million in four months.
The company said it will use the funds to build more battery swap stations and provide more electric motorcycles to riders in Africa. Currently, it operates in Kenya, Uganda, Rwanda, Nigeria, Benin and Togo. They are also testing their services in Cameroon and Tanzania.
Breadfast, an Egypt-based e-commerce startup, raised $50 million in a pre-Series C round in February, which was backed by Saudi billionaire family Mubadala Investment Company, SBI Investment Company, Olayan Financing Company and other institutional investors.
The new round brings the platform closer to its proposed IPO.
With the new funding, Breadfast intends to expand infrastructure, expand logistics and explore entry into new African markets ahead of a larger Series C round expected in the first half of 2026.
Next major venture funding round was for Ivorian mobility fintech GoCab, which Completed business of $45 million Round Expanding its “drive-to-own” model in emerging markets. The round consists of $15 million of equity and $30 million of debt, which is part of a larger $60 million Shariah-compliant debt facility.
E3 Capital and JANNGO Capital co-led the equity round, with participation from KawiSafi Ventures and Cur8 Capital.
The funding will help GoCab expand its operations in Africa and other regions. The goal is to provide gig workers with resources that help them earn a steady income. The company's plans include having 10,000 vehicles in use by the end of 2028 and reaching annual recurring revenue of $100 million.
Next is Nigerian defense technology startup, Terra Industries, which raised $22 million barely a month after closing a $11.8 million round. This brings the company's total funding to $34 million and its valuation above $100 million, which is impressive for a startup that is only two years old.
Lux Capital, the Silicon Valley firm that recently raised $1.5 billion, led the latest funding round along with Resilience17 Capital, which is managed by Flutterwave CEO Olugbenga “GB” Agboola. Joe Lonsdale's 8VC and Nova Global again participated, and actor Jared Leto also joined the investment.
Other major contributors to the February total include South African edtech, Enco Education, which raised $22 million in debt funding, and another South African startup, Lula, which secured a $21 million investment.