Equity funding dominates June capital raises

From the newsletter 

All five African mobility startups that raised money in June did equity deals. No debt. Three of the startups raised significant sums through generic venture rounds, one raised a pre-seed round, while another got Series A financing, according to our analysis of data from The Big Deal Africa. The total funding for 2025 is now $110.9 million.  

• This is a second month in a row during which only equity financing was raised in the sector. In May, startups in the mobility sector raised $26.5 million, all of which was also equity funding.

• The diversity of funding types in the mobility sector has declined in recent months, with equity financing dominating. Other types of funding like debt and grants, which were prevalent at the beginning of the year, have dried up since April. 

More details

• Following the month of May during which equity financing dominated, Electric Transits Africa (ETA) raised $500,000 in a pre-seed round in June. The Kenya-based startup seeks to establish the EV charging infrastructure across Sub-Saharan Africa. The company aims to simultaneously deploy a fleet of EVs for tourism transfers. 

• Egypt-based online freight forwarding platform Nowlun was one of three startups that raised venture rounds during the month. The startup raised $600,000, bringing its total funding to date to $2.3 million. The funds will accelerate the development of the firm’s Smart Logistics Assistant and expand operations in Egypt and Saudi Arabia. 

• South Africa’s MyNextCar (MNC) also raised a venture round of $10 million in June. MNC is a key fleet partner for ride-hailing giant Bolt in the country. The funding, which was the second highest raised in June, will add 1,500 new vehicles to MNC’s fleet. 

• Kenyan used car marketplace Peach Cars raised $11 million in a Series A funding round during the period. It is the highest funding raised by a mobility startup in June, and comes two years after the startup also raised $5 million in June 2023 from investors to help it scale.

• South African car subscription startup FutureRent also raised $5.7 million in June in a venture round. The capital injection brings over 450 new vehicles to FutureRent’s growing fleet, the company’s most significant expansion to date.

• Despite the slight increase in June’s funding, African mobility startups continue to face challenges in raising capital due to a combination of factors including limited infrastructure, regulatory hurdles, and a generally risk-averse investment climate. These issues are compounded by the global economic climate, which has led to decreased investment in frontier markets like Africa. 

Our take

• The absence of debt and grant financing for two consecutive months suggests startups may increasingly rely on venture capital and equity rounds, favoring scalable financing models.

• Kenya, Egypt, and South Africa continue to attract the lion’s share of investment. This could lead to a funding gap in other African markets unless regional investors or development finance institutions step in to diversify support. 

• As countries like Kenya, Ethiopia, Rwanda and Nigeria push EV policies, more early-stage funding may flow to startups tackling charging networks, energy storage, or fleet electrification.