African startups raised about $135 million in May 2026 across equity, debt, and grants. Big tickets from Nala and LemFi drove the rebound.
African startups raised around $135 million in May 2026, according to a deal tally covering 37 companies that announced funding. The total was up from about $110 million in April, and the number of disclosed deals also rose versus March.
One standout detail was the mix of capital. Startups raised roughly $65 million in equity, which is money investors pay for shares. They also raised about $68 million in debt, which is borrowed money that must be repaid, like a bank loan, but often structured for startups. Grants, which are non-dilutive funding that does not take equity, added about $2 million.
The month’s headline number was driven by a small set of large transactions. These included NALA securing a $50 million credit facility, LemFi adding $30 million to its Series B, Africa GreenCo raising $10 million, and BFREE closing a $10 million round. Together, those four deals accounted for close to three-quarters of the reported $135 million.
Regionally, West and East Africa attracted about 85% of the capital disclosed in May. Nigeria took roughly 64% of all equity funding, helped by continued investor interest in fintech and financial services.
The near parity between debt and equity suggests Africa’s startup funding market is changing. In prior years, equity reportedly made up around 70% of startup investment on the continent.
More debt funding can be a positive signal when it goes to businesses with predictable revenue, because it lets founders scale without giving up as much ownership. But it also raises the bar on cash flow and repayment discipline, and it can be harder for earlier-stage startups that are not yet generating steady income.
May’s rebound also shows how concentrated funding totals can be. Even with more deals, a handful of institutional-sized rounds can dominate the headline figure, which matters for founders benchmarking the market and for investors tracking where liquidity is actually flowing.
Primary Source: Techinafrica
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