African startups raised $174 million in venture capital funding during January 2026, with financial technology companies leading investment flows across the continent.

South African fintech Lula secured $21 million from Dutch development bank FMO to expand its small and medium enterprise lending platform. The company aims to address the significant SME funding gap in South Africa, where small businesses often struggle to access traditional bank financing despite contributing about 34% to GDP.

Delta40, a pan-African venture capital firm, raised $20 million to provide both capital and operational support to early-stage technology companies across the continent. The firm focuses on backing startups in financial services, healthcare, and enterprise software sectors.

Regional Expansion Plans

In West Africa, a prominent startup backed by Nigerian industrialist Tony Elumelu is pursuing a $100 million capital raise to fund its continental expansion. The planned fundraising reflects growing investor interest in scaling financial services across Africa's largest economy, where the Central Bank of Nigeria has been implementing policies to boost digital payments and financial inclusion.

The January funding activity follows sustained venture capital interest in African fintech companies, which have attracted significant investment as they work to serve the continent's large unbanked population. Mobile money services and digital payment platforms have seen particularly strong growth, especially in East and West Africa.

Market Context

The continued flow of capital into African fintech comes as the African Continental Free Trade Area (AfCFTA) agreement drives demand for cross-border payment solutions and digital financial services. Regulatory frameworks for fintech services are also maturing across major markets including Nigeria, Kenya, and South Africa, providing greater certainty for investors.