African startups are making significant progress. In this context, the digital economy platform FollowICT highlights the top startup news across Africa over the past week.
– Angolan transport startup ANDA raises $1.2m funding to further “drive-to-own” model
Angolan startup ANDA, which has developed an innovative “drive-to own” model that empowers drivers of two-, three- and four-wheeled vehicles, has secured US$1.2 million in funding from private credit impact fund BFA Asset Management (BFAAM).
Founded in 2022 by Sergio Tati and Joerg Nuehrmann, ANDA is a fast-growing startup that is professionalising urban transport through an integrated mobility and logistics ecosystem. It offers asset financing, training, and assistance at its “safe stops”.
The startup raised US$3.4 million in seed funding late last year, in a round co-led by Breega and Speedinvest, and has now followed that up with a US$1.2 million investment from BFAAM, Angola’s largest alternative investment and fixed-income investment company, via its Kimbo Fund.
The transaction will enable ANDA to accelerate its expansion plan, by expanding and modernising its fleet to meet growing demand and to accommodate electric vehicles, and scaling up logistics infrastructure to enhance service delivery to businesses and institutions nationwide.
-Nigerian fintech unicorn Flutterwave secures banking license to accelerate payment efficiency
Nigerian fintech unicorn Flutterwave has secured a Nigerian banking license, strengthening its financial infrastructure in the country and enabling more efficient financial services and settlement flows for consumers, businesses and enterprises.
Launched in 2016, Flutterwave builds modern payments technology and infrastructure for Africa to enable people and businesses to connect with the global economy. Its solution enables banks and merchants to replace multiple payment integrations with one simple API, which enables processing of any form of payment anywhere in Africa. To date, the company has processed over US$40 billion in payments and enabled more than 1 billion unique transactions.
The company is one of Africa’s few tech unicorns, with a valuation exceeding US$3 billion, and it has now secured a Nigerian banking license. The license enables the company to hold funds and deposits directly, strengthening its financial infrastructure and enabling more efficient financial services in its largest market.
– Kenya’s 4G Capital secures $2m funding to expand financial inclusion across East Africa
Kenyan fintech company 4G Capital has secured a strategic investment of US$2 million to scale its innovative lending model, while expanding financial inclusion and deepening its reach among underserved businesses across East Africa’s informal economy.
Founded in 2013, 4G Capital blends human customer service with advanced digital technology to deliver small working capital loans and customised business training to micro enterprises that are excluded from the formal financial system.
Since its inception in 2013, the startup has disbursed over US$800 million in loans to over 755,000 clients across Kenya and Uganda. It has issued 6.8 million loans that have supported entrepreneurs to grow their business and build more resilient livelihoods, and is on track to surpass US$1 billion in total lending since inception later this year.
The US$2 million funding came from GIF Growth, the Global Innovation Fund’s dedicated growth-stage vehicle, and will enable 4G Capital to expand by strengthening its proprietary “touch-tech” model, an approach that combines digital lending platforms with in-person support from local field officers. This hybrid model ensures that clients access capital while also receiving financial literacy training and business support.
– Japanese investors back Africa-focused VC fund
Japanese companies are increasing their exposure to Africa’s startup ecosystem through a new US$147 million venture capital fund managed by Novastar Ventures. The fund has attracted backing from major Japanese names including Mitsubishi Corporation, Sumitomo Mitsui Banking Corporation, Toyota Ventures, SBI Holdings, Mitsui OSK Lines and the Japan International Cooperation Agency. According to Novastar partner Steve Beck, the investors are seeking deeper access to African startup opportunities and market knowledge, with co-investment rights also built into the arrangement.
The move reflects Japan’s growing interest in African innovation as businesses at home face slower domestic growth and low interest rates. Research cited in the report says that in 2025, more than 60 Japanese investors participated in over 190 startup deals across Africa. The new fund also comes at a time when African venture capital fundraising has been relatively weak, with firms raising only US$107 million in 2025, according to the Africa Venture Capital Association.
Novastar plans to focus heavily on green technology and climate-linked businesses. The firm has already used the fund to invest in companies such as Kenya’s electric bus maker BasiGo, EV fleet manager Greenwheels and battery-swapping venture ARC Ride. It has also backed Egypt’s Breadfast and Nigeria’s Chowdeck, and is now looking for new opportunities in South Africa. Other investors in the fund include British International Investment, Norfund, Swedfund, Proparco and Cofides.
– Breega Nets $8.5m From AfDB as Development Bank Ramps Up VC Appetite
The African Development Bank Group (AfDB) has approved a €7.5m ($8.5m) investment into the Breega Africa Seed I Fund, aiming to plug the persistent early-stage funding gap for African technology startups.
The commitment arrives just weeks after the Bank backed Saviu II, a separate venture vehicle targeting Francophone Africa. Together, the moves indicate that under its new leadership, the AfDB intends to keep venture capital firmly within its development toolkit, relying heavily on blended finance structures to de-risk frontier markets for commercial investors.
Founded in 2015 and managing €700m in assets globally, Paris-based Breega is known in Europe for backing startups like Exotec and Moneybox. The firm is now pivoting significant resources toward the African continent.
Geographically, Breega is casting a wide net. The fund targets the continent’s “Big Four” tech hubs , Nigeria, South Africa, Kenya, and Egypt , alongside Francophone markets. Sector focus includes:Fintech and Insurtech, Agritech and Climate Tech, Healthtech, and Logistics and Edtech.
– South Africa’s OneBio Secures Funding to Build Africa’s ‘Biotech Factory’
Cape Town-based OneBio Venture Studio has secured a R20 million ($1.16 million) grant facility to accelerate its venture-building programme, doubling down on its mission to turn lab research into commercial biotech success.
Led by Michael Fichardt, Nick Walker, and Gian-Marco Melfi, OneBio sits strictly at the intersection of biology and technology (TechBio). The new capital is earmarked to catalyse the firm’s internal venture-building efforts and de-risk early-stage African biotech innovation.
OneBio operates a complex hybrid model: it functions as both a venture capital fund and a venture builder. Rather than solely investing in external startups for portfolio diversification, OneBio actively manufactures biotech companies from scratch.
