By 
Africa’s tech ecosystem saw renewed momentum in 2025, with startup fundraising rising 33 percent to US$3 billion as investors returned after two cautious years.
Deals were signed, acquisitions closed, and confidence crept back into the market.
Yet behind the headline growth was a quieter story: several high-profile deals never materialised.
According to Tecable, many negotiations collapsed late, while others faded after months of unproductive fundraising.
A number of companies imploded publicly due to governance failures or regulatory action. Together, these failures revealed a tougher, more disciplined ecosystem—one less willing to rescue struggling startups or overlook weak fundamentals.
For some founders, acquisition talks became a last attempt at survival. Nigeria’s Medsaf entered discussions in late 2024 after running out of cash, but neither a sale nor fresh funding came through.
The pharmaceutical supply-chain startup shut down, highlighting how difficult it has become to sell companies once financial distress is obvious.
In Kenya, buy-now-pay-later firm Lipa Later unravelled in public view. Despite raising nearly US$10 million by 2024, the company struggled under the cost of acquiring Sky Garden.
By early 2025, investors declined to provide more capital, and the company was placed under administration in March.
Nigeria’s Edukoya followed a different path.
Although it raised US$3.5 million in a celebrated pre-seed round, its business model failed to gain traction.
Attempts at partnerships and mergers fell through, leading to its shutdown in February.
Other startups failed simply because funding never arrived.
Joovlin, a Nigerian e-commerce fintech, shut down in January after failing to raise beyond its seed round.
In South Africa, 54 Collective closed its venture studio after the Mastercard Foundation withdrew funding, exposing the vulnerability of ecosystem builders dependent on single backers.
Some collapses were driven by regulation and governance issues.
Nigerian open-finance startup Okra exited in July after slow adoption and regulatory pressure eroded investor patience.
South Africa’s Banxso was liquidated following a massive fraud penalty, while Bento Africa shut down amid tax and pension fraud allegations.
Despite these failures, 614 deals closed in 2025, signalling recovery. But the deals that didn’t happen were just as telling—evidence of a market learning to say no, prioritising sustainability, and drawing firmer lines around governance and trust.
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