Mobility funding drops by 85% in March

From the newsletter

African mobility startups raised $5.7 million last month, marking a sharp decline from the $39 million secured in February. The majority of this funding came from Eastern Africa, which led the month with $5.2 million, signalling a rebound after a subdued performance since the beginning of the year. Western and Southern Africa followed with $0.3 million and $0.2 million respectively.

• The $5.7 million raised in March 2025 is significantly below the monthly average of $22.6 million in 2023 and $24.2 million in 2024, highlighting a notable slowdown in investor activity compared to annual trends.

• In March 2025, funding was more evenly spread across venture rounds, grants and a seed round, contrasting sharply with the annual average dominance of venture and debt funding in 2023 and 2024. 

More details

• Leta, a Kenyan startup, raised $5 million in Seed funding, making it the largest deal of the month. Leta’s AI-powered platform for delivery optimisation and logistics visibility reflects investor confidence in smart, scalable logistics tech. This deal signals that while large-scale funding has slowed, investors are still backing early-stage solutions with clear commercial potential.

• ScootHero, based in South Africa, secured $400,000 in venture funding. The company develops electric mobility infrastructure, particularly smart e-scooters for delivery and personal transport. This round shows continued support for mobility innovation in Southern Africa, albeit at a modest scale, and highlights growing interest in cleaner urban transport options.

• Solutech, a Kenyan logistics platform for manufacturers and distributors, received $200,000 through a grant. Its funding suggests that smaller, impact-driven ventures in operational technology can still attract capital, especially when they offer measurable efficiency improvements in fragmented sectors.

• Aquantuo, a Ghana-based startup, was awarded $100,000 in grant funding. The company helps diaspora communities and African SMEs ship goods across borders, pointing to rising interest in cross-border logistics and e-commerce infrastructure. This grant reflects growing investor recognition of untapped opportunities in intra-African trade.

• Mobius Motors, a Kenyan automaker, was acquired by Middle East-based investor Silver Box, marking its return to production after years of struggle. While the deal amount was not disclosed, the acquisition reflects renewed regional interest in locally manufactured vehicles and signals confidence in the long-term viability of Africa’s automotive sector.

Our take

• The return to early-stage funding reflects a more cautious investment climate, where investors appear to be taking a step back from high-value, structured deals to reassess opportunities at the innovation and product-market fit level. The largest March deal, Leta’s $5 million seed round, stood out in a month dominated by smaller grants and venture rounds.

• This shift may signal a temporary recalibration after February's capital surge, as investors balance risk by seeding promising startups while holding back on large-scale commitments. It also suggests that investor confidence remains strong—but selectively applied to ventures that show early traction and adaptability in uncertain market conditions.

• The absence of later-stage funding like Series A or B rounds in March suggests that investors may be waiting for clearer economic or operational signals before doubling down on growth-stage startups. Instead, they are nurturing the pipeline by backing ventures still in development, innovation, or early revenue phases.