African Startups Show Remarkable Growth in the Digital Economy
African startups are making significant strides in the technology sector. In that light, FollowICT, a digital economy platform, has spotlighted the key startup developments across the continent from last week.
Angolan Transport Startup ANDA Secures $1.2 Million Funding
Angolan startup ANDA has successfully raised $1.2 million in funding from BFA Asset Management (BFAAM) to enhance its innovative ‘drive-to-own’ model aimed at empowering drivers of various vehicles. Founded in 2022 by Sergio Tati and Joerg Nuehrmann, ANDA is rapidly developing its urban transportation solutions within an integrated mobility and logistics ecosystem, offering asset financing, training, and support for drivers.
This recent funding follows a $3.4 million seed round in late 2022, co-led by Breega and Speedinvest. The latest investment from BFAAM, the largest alternative and fixed income investment company in Angola, will enable ANDA to expand its operations and modernize its fleet, addressing the growing demand for electric vehicles while enhancing its logistics infrastructure for better service delivery throughout Angola.
Flutterwave Obtains Banking License to Enhance Payment Solutions
Nigerian fintech unicorn Flutterwave has secured a banking license in Nigeria, a move poised to elevate the efficiency of financial services and payment processes across the country. Founded in 2016, Flutterwave specializes in modern payments technology for Africa, assisting banks and merchants in streamlining their payment integrations with a single API that facilitates transactions across the continent.
With a valuation exceeding $3 billion, Flutterwave has processed over $40 billion in payments, enabling more than one billion unique transactions. This banking license allows the company to hold funds and deposits directly, thereby fortifying its financial infrastructure and improving service capabilities in its primary market.
4G Capital Secures $2 Million to Improve Financial Inclusion
Kenyan fintech company 4G Capital has raised $2 million to enhance its financial inclusion efforts for underserved businesses across East Africa. Since its inception in 2013, 4G Capital has utilized a blend of personalized customer service and advanced technology to provide small working capital loans and tailored business training to those excluded from the formal financial sector.
Throughout its journey, 4G Capital has disbursed over $800 million in loans to more than 755,000 customers in Kenya and Uganda. The latest funding from GIF Growth, dedicated to growth-stage companies, will support the expansion of its ‘Touchtech’ model, merging a digital lending platform with direct field support to boost financial literacy and business acumen among its clientele.
Japanese Investors Bolster Africa-Focused Venture Capital Fund
A Japanese firm is increasing its investment in Africa’s startup ecosystem through a new $147 million venture capital fund managed by Novastar Ventures. This fund has drawn support from several major Japanese corporations, including Mitsubishi Corporation and Toyota Ventures. As interest in African innovation grows among Japanese investors, the fund aims to deepen access to startup opportunities and market insights.
Research highlights that over 60 Japanese investors participated in more than 190 startup deals across Africa in 2025, reflecting the rising interest amid a backdrop of sluggish domestic growth in Japan. Novastar Ventures plans to prioritize investments in green technologies and climate-savvy businesses, supporting initiatives across multiple African countries.
Briga receives $8.5 Million from African Development Bank
The African Development Bank Group has committed €7.5 million (approximately $8.5 million) to the Breega Africa Seed I Fund, aimed at addressing early-stage funding shortages for African tech startups. This investment follows the bank’s support of the Saviu II initiative, signaling a strategic focus on integrating venture capital within its development framework under new leadership.
Founded in 2015 and managing €700 million globally, Breega has carved a niche in financing startups in Europe and is now directing attention toward Africa’s thriving tech ecosystem. The fund will particularly focus on key markets such as Nigeria, South Africa, Kenya, and Egypt, emphasizing sectors like fintech, agritech, and healthtech.
OneBio Secures Funding for Biotech Development in Africa
OneBio Venture Studio, based in Cape Town, has acquired a R20 million (approximately $1.16 million) grant to accelerate its venture incubation program, aligning with its goal to transform laboratory research into successful biotech applications. Led by experts Michael Fichardt, Nick Walker, and Gian-Marco Melfi, OneBio operates at the intersection of biology and technology, known as TechBio.
This funding will enhance OneBio’s ability to nurture homegrown biotech innovations while de-risking early-stage ventures. By operating both as a venture capital fund and a venture builder, OneBio is poised to actively develop biotech companies from inception, leading to greater commercialization of scientific research in Africa.
