Fintech faces tough competition as energy startups funding surge
Africa’s long-standing fintech dominance in startup funding is facing a challenge as energy startups rise for almost equal footing in 2025, according to Africa: The Big Deal’s latest funding report.
So far this year, fintech startups have captured 33 percent of total funding which is about $725 million out of $2.2 billion raised across the continent, a significant dip from the 45 percent average recorded between 2019 and 2024.
The report noted that only in 2020 did fintech’s share fall this low, while in 2021 it peaked at 56 percent.
Among the top 11 biggest deals of 2025, fintechs claimed five spots, including Wave ($137m debt), Bokra ($59m debt), Stitch ($55m Series B), LemFi ($53m Series B), and Tasaheel (MNT-Halan, $50m corporate bond).
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However, energy tech is fast closing the gap, attracting an equally large 33 percent of total funding, largely driven by a surge in debt financing.
Four major energy companies made the top 11 list — d.light ($300m debt), Sun King ($156m debt), Burn ($90m debt), and PowerGen ($55m equity).
The report highlights that 63 percent of all debt funding in 2025 has gone to energy ventures compared to fintech’s 29 percent. This marks the first time since 2019 that another sector has rivaled fintech so closely in overall fundraising.
“This year’s data signals a historic shift — energy tech, particularly those with climate-focused models, are attracting record investment,” the report noted.
Indeed, climate tech startups now account for 39 percent of total funding in 2025, the highest share ever tracked by Africa: The Big Deal. Since 2019, more than $5 billion has been invested in climate-related ventures, including $2.7 billion in just the past three years.
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The data also reveals a clear shift in Africa’s financing structure as debt is now driving a record 42 percent of total startup funding, amounting to $935 million so far this year which is already surpassing the debt raised in all of 2024 or 2022.
If the trend continues, 2025 could exceed the $1.1 billion debt record set in 2023, it noted.
Since 2019, energy startups have consistently been major debt magnets, raising $1.9 billion of the $3.9 billion tracked, nearly half of all startup debt on the continent. Fintech follows with 32 percent, while logistics and transport claim 11 percent.
