Two startups from Egypt and Nigeria raised the highest funding in January as African startups received $174 million through disclosed deals of $100,000 and above.

Insights from Africa: The Big Deal noted that the figure represented a sharp slowdown compared with January 2025, when startups raised $276 million and is also well below the $263 million monthly average recorded over the previous 12 months.

The report noted that while funding levels remained higher than in January 2023 at $106 million and January 2024 at $85 million, the latest data pointed to deepening caution among investors, particularly when deal volume is considered.

According to the report, only 26 startups announced funding rounds of at least $100,000 in January, a number that analysts said is more worrying than the headline funding total.

This is just above half of the monthly average over the past year and significantly below the number of deals recorded in January 2025.

Going by this data, January 2026 marked the lowest monthly tally since at least 2020, highlighting how selective capital deployment into African startups has become as investors prioritise fewer, larger, and often later-stage bets.

As stated, a handful of large transactions pushed the January total to $174 million.

Egypt-based fintech valU emerged as the top fundraiser after securing $64 million in debt financing from the National Bank. Nigeria’s mobility financing startup MAX followed, raising $24 million through a mix of equity and asset-backed debt.

Africa: The Big Deal noted that the deal underscored continued investor interest in asset-heavy business models with clearer revenue paths, even amid a tougher funding environment.

Four other startups raised equity rounds of $10 million or more during the month.

These include NowPay, an Egyptian fintech that raised $20 million, Moroccan proptech startup Yakeey with a $15 million Series A, Terra Industries, which raised $12 million in the defence sector, and Côte d’Ivoire-based fintech Cauridor.

Further, the insights showed three notable exit announcements during the month.

Flutterwave acquired Nigerian open banking startup Mono in an all-stock deal valued at around $30 million, signalling continued consolidation within the fintech ecosystem.

In addition, tech talent platform Savannah was acquired by Commit, while Izili Group completed the acquisition of off-grid solar company Qotto.

Together, these exits point to growing merger and acquisition activity as stronger companies reposition for scale in a capital-constrained market.

It should be noted that the low deals recorded in the month under review pointed to a tougher environment for startups seeking their first or second institutional cheques, even as global investors show renewed interest in Africa’s larger, more mature companies.

Accordingly, investors have increasingly prioritised balance-sheet strength, clear unit economics and paths to profitability, leaving less room for experimental or pre-revenue ventures. Debt and asset-backed financing, once peripheral, are also playing a larger role, reflecting a shift away from pure growth-equity bets.