Spiro, Terra lead as African startups raised $272m in February, a 56.3% monthly increase

Venture funding into African startups witnessed a bump in February as startups across the continent raised $272 million in equity, debt and grants. This is according to data by the African startup funding analytics company, Africa the Big Deal.

February’s total is a vast improvement from the $174 million raised in the previous month of January, indicating an impressive 56.3 per cent increase. It is also a massive improvement from the $119 million raised in the same month last year (2025), an overwhelming 128.5 per cent rise.

The impressiveness of number is also reflected in the fact that it is above the $254 million average over the last 12 months by 7 per cent. It is also impressive in that it puts 2026 ahead of 2025 after two months despite a slower start.

So far, startups have raised $446 million after 2 months of 2026, nearly 7 per cent more than the first two months of 2025.

With March 2025 being one of the worst venture funding months of all time, analysts expect that 2026 would maintain its leadership at least for the foreseeable future.

54 per cent of the $272 million raised in February (about $146.9 million) came in the form of equity. 45 per cent ($122.4 million) came in the form of debt, while one per cent (about $2.7 million) were grants.

Startup funding: Spiro, Breadfast, Terra lead February’s race

Overall, 40 African startups that raised $100,000 or more drove the month’s numbers.

Leading the pack is Benin-based Spiro,, which closed a $57 million in a debt funding round led by Afreximbank, with Nithio and the Africa Go Green Fund joining as new investors. This meant the e-mobility company has now raised $157 million in four months.

The company said it will use the funds to build more battery swap stations and provide more electric motorcycles to riders in Africa. Currently, it operates in Kenya, Uganda, Rwanda, Nigeria, Benin, and Togo. They are also testing their services in Cameroon and Tanzania.

Egypt-based e-commerce startup, Breadfast, raised $50 million in a pre-Series C round in February, backed by Mubadala Investment Co., a Saudi billionaire family, SBI Investment Co., Olayan Financing Company, and other institutional investors.

The new round brings the platform even closer to its proposed IPO.

With the new funding, Breadfast intends to expand infrastructure, scale logistics, and explore entry into new African markets ahead of a larger Series C round expected in H1 2026.

The next major venture funding round was for the Ivorian mobility fintech GoCab, which closed a $45 million round to expand its “drive-to-own” model across emerging markets. The round includes $15 million in equity and $30 million in debt, part of a larger $60 million Shariah-compliant debt facility in the works.

E3 Capital and JANNGO Capital co-led the equity round, with participation from KawiSafi Ventures and Cur8 Capital. 

The funding will help GoCab expand its operations in Africa and other regions. The goal is to provide gig workers with resources that help them earn a stable income. The company’s plans include having 10,000 vehicles in use and reaching $100 million in annual recurring revenue by the end of 2028.

Next is Nigerian defence technology startup, Terra Industries, which raised another $22 million, barely a month after closing an $11.8 million round. This brings the company’s total funding to $34 million and places its valuation above $100 million, which is impressive for a startup that’s only two years old.

Lux Capital, the Silicon Valley firm that recently raised $1.5 billion, led the latest funding round alongside Resilience17 Capital, which is managed by Flutterwave CEO Olugbenga “GB” Agboola. Joe Lonsdale’s 8VC and Nova Global participated again, and actor Jared Leto also joined the investment.

Other major contributions to the February total include South African edtech, Enko Education, which raised $22 million in debt financing, and another South African startup, Lula, which secured a $21 million investment.

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