A lot of money moved through Africa’s tech ecosystem in 2025, with total fundraising rising 33% to $3 billion. Companies raised rounds, acquisitions closed, and investors who had spent the previous two years sitting on their hands began writing cheques again.
But alongside those successes was a quieter list of deals that never made it across the line.
Some collapsed late in negotiations. Others died after months of fundraising conversations that ended with silence. A few imploded publicly, dragged down by governance failures or regulatory action. Together, they offer a useful snapshot of where the market’s limits are and what no longer gets a free pass.
Overall, Africa’s startup ecosystem has become more disciplined, less patient, and far less willing to rescue companies that have lost control of their finances or governance. Here are some of the big deals that collapsed in 2025:
When acquisitions failed to save the company
For some startups in 2025, acquisition talks were not about ambition but survival.
Medsaf, the Nigerian pharmaceutical supply chain startup, entered acquisition discussions in late 2024 after its finances ran out. The company had struggled to secure funding and hoped a buyer would give it a new lifeline. The deal never closed. Fundraising efforts also fell through. Medsaf shut down, proving that selling a company once financial distress is obvious is becoming difficult on the continent.
In Kenya, Lipa ’s problems played out more publicly after months of rumours. The buy-now-pay-later fintech had raised nearly $10 million by 2024, money that funded its expansion. But the business was still absorbing the cost of its earlier acquisition of Sky Garden, the struggling e-commerce platform. By early 2025, Lipa was back in the market, trying to raise more capital. Investors were unconvinced. In March, the company was placed under administration.
Edukoya’s shutdown followed a different path. The Nigerian edtech startup had raised $3.5 million in what was then seen as a standout pre-seed round. But strong early funding could not compensate for an unclear business model. The company explored partnerships and merger talks, looking for a way to make the numbers work. None succeeded. Edukoya shut down in February 2025.
Funding rounds that quietly disappeared
Some companies didn’t fail because of a bad deal, but because no deal came at all.
Joovlin, a Nigerian e-commerce fintech, shut down in January after failing to secure follow-on funding beyond its seed round. The company needed more capital to grow its user base. That funding never arrived.
In South Africa, 54 Collective—previously Founders Factory Africa—ran into trouble after the Mastercard Foundation terminated its grant in January 2025. The decision followed backlash over a $689,000 rebrand. Without that funding, the firm struggled to find alternatives and eventually shut down its venture studio. The episode highlighted how exposed some ecosystem builders remain when a single major backer walks away.
Okra’s exit in July was one of the most closely watched. The Nigerian open-finance startup had raised more than $16.5 million and was seen as a key part of Africa’s fintech infrastructure. But adoption was slower than expected, regulation was heavy, and investors were no longer willing to wait.
When regulation and trust ended the conversation
A few companies didn’t get the chance to look for buyers or new investors.
South Africa’s trading platform Banxso collapsed after the Financial Sector Conduct Authority imposed a ZAR 2 billion ($118 million) penalty for deepfake trading fraud. While it’s not clear whether rescue attempts were made, by August 2025, the company was provisionally liquidated.
In Nigeria, Bento Africa halted operations in February following allegations of tax and pension fraud. Major clients, including Moniepoint and Paystack, terminated their contracts. Once trust was gone, there was little left to negotiate.
Deals that exposed deeper tensions
Not every failed deal ended in shutdown.
In Kenya, M-KOPA’s planned share buyback turned into a public dispute when a co-founder filed a complaint with regulators early in the year. He alleged that the valuation used in the deal was artificially suppressed to take advantage of local employees. What M-KOPA shareholders thought would have been a normal transaction turned into a public argument, triggering a lawsuit in Kenya.
A less forgiving market
An estimated 614 deals went through in 2025, surpassing 2024 and 2023, placing Africa on a road to recovery. Companies raised money, acquisitions closed, and the ecosystem did not freeze.
However, the failed deals show a market that has become confident in saying no. Money was available, but only to companies that showed clear paths to sustainability. Acquisitions became harder to pull off once problems were visible. And governance failures ended conversations faster than ever.
The biggest deals that didn’t happen in 2025 were not just missed opportunities. They were signals of a market that has moved on from easy money, and of an industry learning, sometimes painfully, where its real limits are.
