African startups raised over $700M in Q1 2026

This article was originally published on TechCabal Insights and was written by Joseph Oloyede, Analyst at TechCabal Insights.

At TechCabal Insights, we’ve been busy tracking every dollar and deal moving through the continent in the first three months of 2026.

Here is your high-level briefing on the state of the market.

The big number: $711 Million

In Q1 2026, we tracked over 80 deals across the African tech ecosystem.

While 18% of these deals remained undisclosed, the disclosed transactions added up to a solid $711 million.

This capital flowed through a healthy mix of equity, debt, and grant funding.

Where is the money going?

Egypt and South Africa are currently leading the race for capital in 2026.

Egypt secured $154M, followed closely by South Africa at $134M, with Kenya and Nigeria rounding out the top four.

Fintech and energy remain king

Investors are still doubling down on financial services and sustainable infrastructure.

Fintech attracted $221M, while the Energy & Water sector secured $141M to solve the continent’s power gaps.

Logistics and Transport followed closely behind with $149M in total investment.

Hot: A wave of M&A activity

The “exit” story is heating up with over 30 M&A deals tracked this quarter.

Notable moves include Flutterwave’s acquisition of Mono and Moniepoint’s aggressive expansion into Kenya via Sumac Microfinance Bank.

These deals show that larger players are now buying their way into new markets and product lines.

Not: The graveyard and the pink slips

The first quarter of 2026 has been a period of painful restructuring and market exits. While some startups are trimming teams to survive, others have reached the end of the road due to regulatory and financial hurdles.

The shutdown signal

Capital and operational stability are drying up for those who cannot navigate shifting market conditions. The Kenyan climate tech firm KOKO was forced to lay off its entire 700-person team and shut down operations following a dispute with the government over carbon credit sales.

Jumia has exited Algeria, and Uber ceased operations in Tanzania as competition and costs mounted. Even long-standing names like Showmax and City Press (after 44 years) announced closures this quarter to cut costs.

Restructuring for efficiency

Other major players are making deep cuts to reach profitability or pivot toward new technologies like AI. The neobank Kuda laid off over 100 employees as part of a restructuring hit to its core business units. Zap Africa also cut 44% of its workforce in a targeted AI-driven restructuring move.