African startups raised $1.44 billion in the first half of 2026, according to data compiled by TechCabal. While the total is only a slight increase from $1.42 billion in H1 2025, it is the composition of deals that commands attention: fewer rounds, larger tickets — and a historic surge in mergers and acquisitions.
Fewer Deals, Bigger Bets
Only 146 deals were publicly disclosed in H1 2026, down from 252 in the same period of 2025. This volume decline reflects a maturing market: investors are concentrating capital on companies with proven business models, stepping back from early-stage bets. Of the total raised, $818 million came from equity, $614 million from debt, and $9 million from grants.
Spiro Dominates Electric Mobility
Electric mobility startup Spiro dominated the period with a $215 million equity round topped up by an additional $55 million — a combined $270 million. This positions Spiro among the largest startup funding rounds in African history and underscores growing investor appetite for the continent's energy transition.
Climatetech and Fintech Lead by Sector
The most funded sectors were: climatetech and green infrastructure (Spiro, Koolboks, Powerstove), fintech — including Blnk at $37.1 million — and AI-driven services (AethexAI, $3 million). Proptech also featured, with Agenz raising $5 million.
A Historic M&A Record
H1 2026 recorded 63 mergers and acquisitions, nearly double the 33 seen in H1 2025 — making it the most active half-year for M&A in African tech history. Analysts read this as structural consolidation: large platforms are acquiring smaller competitors rather than allowing them to raise fresh capital.
Why It Matters
The Indian Ocean region is not on the sidelines of this dynamic. Mauritius, with its international financial centre, and Réunion, with its labelled French Tech ecosystem, are natural entry points for capital seeking regulated exposure to African growth. The African M&A boom opens new regional arbitrage opportunities for financial actors in the Indian Ocean zone.
Sources: TechCabal, Nairametrics, TechNext24.