Significant capital moved into Africa’s tech ecosystem in 2025, with total funding increasing 33% to $3 billion. Companies raised money, acquisitions were completed, and investors who had been sitting idle for the past two years started writing checks again.
But alongside those successes was a list of low-key deals that never crossed the line.
Some negotiations broke down in the final stages. Some died after months of fundraising conversations ended in silence. Some of them have publicly collapsed due to governance failures or regulatory actions. Together, these provide a useful snapshot of where the limits of the market are and what is no longer getting a free pass.
Overall, Africa’s startup ecosystem has become more disciplined, patient and far less willing to bail out companies that have lost financial or governance control. Here are some of the big deals that failed in 2025.
When acquisitions fail to save the company
For some startups in 2025, acquisition negotiations were less about ambition and more about survival.
Medsaf, a Nigerian pharmaceutical supply chain startup, entered acquisition talks in late 2024 after running out of cash. The company had been struggling to secure funding and was hoping a buyer would give it a new lifeline. The deal never went through. Fundraising efforts also failed. Medsaf shut down, proving difficult on the continent to sell the company once financial difficulties became apparent.
In Kenya, after months of rumors, the Ripa Leiter issue has played out more publicly. The buy now, pay later fintech has raised nearly $10 million through 2024, which helped fund its expansion. But the company was still absorbing costs from its previous acquisition of ailing e-commerce platform Sky Garden. By early 2025, Lipa Reiter was back on the market and looking to raise more capital. Investors weren’t convinced. The company was placed into administration in March.
Edukoya’s closure took a different path. The Nigerian edtech startup raised $3.5 million in what was considered an outstanding pre-seed round at the time. But even strong early funding couldn’t compensate for an opaque business model. The company looked into partnership and merger negotiations, looking for ways to make the numbers work. None were successful. Educational Hut closed in February 2025.
A funding round that quietly disappeared
Some companies went bankrupt not because of bad deals, but because no deals were made at all.
Nigerian e-commerce fintech company Joovlin shut down in January after failing to raise more than a seed round. The company needed more capital to expand its user base. That money never arrived.
In South Africa, 54 Collective (formerly Founders Factory Africa) faced problems after the Mastercard Foundation ended its grant in January 2025. The decision was made following backlash over the $689,000 rebrand. Without that funding, the company struggled to find alternatives and eventually closed Venture Studio. This episode highlighted how some ecosystem builders are left at risk when a single major backer leaves.
Okra’s July withdrawal was one of the most high-profile. A Nigerian open finance startup has raised more than $16.5 million and was seen as a key part of Africa’s fintech infrastructure. However, implementation was slower than expected, regulations were heavy, and investors were no longer willing to wait.
When regulation and trust end the conversation
Several companies did not have the opportunity to find buyers or new investors.
South African trading platform Banxso has collapsed after the Financial Sector Conduct Authority imposed a R2 billion ($118 million) fine for deepfake trading fraud. The company was placed in provisional liquidation by August 2025, although it is not clear whether any rescue attempts were made.
In Nigeria, Bent Africa ceased operations in February following allegations of tax and pension fraud. Major customers such as Moniepoint and Paystack have terminated their contracts. Once trust was lost, there was little room for negotiation.
Deals exposed deeper tensions
Not all failed deals result in closure.
In Kenya, M-KOPA’s share buyback plan sparked a public controversy after its co-founder filed a complaint with regulators earlier this year. He claimed that the valuation used in the transaction was artificially suppressed to take advantage of local employees. What M-KOPA shareholders thought was a normal transaction turned into a public debate and led to a lawsuit in Kenya.
an intolerant market
With an estimated 614 deals completed in 2025, more than in 2024 and 2023, Africa is on the road to recovery. Companies raised money, acquisitions were completed, and the ecosystem did not freeze.
But the deal’s failure shows the market is feeling confident enough to say no. Funding was available, but only to companies that demonstrated a clear path to sustainability. Once the problems were visible, it became difficult to carry out an acquisition. And governance failures ended the conversation sooner than ever.
The biggest deals that didn’t happen in 2025 weren’t just missed opportunities. They were a sign that the market was moving away from cheap funding and that the industry was learning, sometimes painfully, what its true limits were.
