10 Startups to Watch in 2025 in West Africa

West Africa’s startup ecosystem is thriving in 2025. With $2.8 billion in venture capital funding in 2024 – a 50% increase from the prior year – startups in fintech, healthtech, clean energy, and agritech are driving growth and innovation across the region. Key markets like Nigeria, Ghana, and Côte d’Ivoire are leading the charge, supported by new policies like Nigeria’s Startup Act and Ghana’s Digital Roadmap.

Here’s a quick snapshot of the trends shaping the ecosystem:

Fintech: 31% of total funding, connecting 30M people to banking.
Healthtech: 28% growth rate, improving rural healthcare access.
Clean Energy: 40% rise in new startups, tackling sustainability.
Agritech: 22% growth, addressing food security.

Top Startups to Watch in 2025:

Carbin Africa – AI-powered used car marketplace.
Zone – Blockchain-based payment gateway.
GoLemon – SME-focused digital banking.
Kuda – Digital banking leader with 5M users.
Wave – Mobile money pioneer in Francophone Africa.
PaidHR – Cloud-based HR and payroll solutions.
Kofa – Financial tools for SMEs.
Yellow Card – Crypto-focused remittance platform.
Pixii Motors – Electric scooters for urban transport.
Lengo AI – AI-driven e-commerce and language solutions.

These startups are solving real challenges in banking, healthcare, clean energy, and mobility – all while creating jobs, improving access, and driving regional innovation.

Quick Comparison of Sectors (2024-2025)

Sector	Funding Share	Key Growth Driver
Fintech	31%	Digital payments and mobile banking
Healthtech	8%	Telemedicine and AI diagnostics
Clean Energy	3%	Solar and electric mobility solutions
Agritech	5%	Smart farming and supply chain

These startups and sectors highlight the rapid evolution of West Africa’s business landscape, with strong investor interest and impactful solutions.

Top 10 Most Funded African Startups in 2024

West African Startup Growth: 2024-2025

West Africa’s startup scene saw remarkable expansion in 2024-2025, fueled by four key factors: increased funding opportunities, forward-thinking policy changes, a growing talent pool, and collaborations with established corporations.

Funding Landscape Evolution
Venture capital investments in the region reached $2.8 billion in 2024, a 35% rise compared to 2023. Early-stage funding was especially active, with seed investments climbing 45% year-over-year. The African Development Bank launched the $200 million West Africa Innovation Fund, which played a major role in this growth. Meanwhile, global venture capital heavyweights like Sequoia Capital and Andreessen Horowitz entered the market, adding further momentum.

Policy Reforms
Policy changes across the region provided a strong foundation for growth. Nigeria’s Startup Act introduced tax breaks and streamlined processes. Senegal attracted $500 million in foreign investment through its Digital Tech Park initiative, and Ghana eased its regulatory framework .

Country	Policy Initiative	Impact
Nigeria	Startup Act	Tax incentives & simplified processes
Ghana	Companies Act Revision	Reduced regulatory hurdles
Senegal	Digital Technology Park	Secured $500M in foreign investment

Talent Development Surge
Efforts to grow the talent pool paid off in a big way. Collaborations like the French-West African Digital Campus, Andela’s regional expansion, and IBM’s upskilling programs increased the developer workforce by 28%, bringing the total to 153,000 professionals .

Corporate Innovation Partnerships
Corporate-startup collaborations gained traction. For example, MTN’s API marketplace allowed 500 startups to integrate telecom services, and the Dangote Group’s innovation challenge supported 50 early-stage ventures. By the end of 2024, 40% of West African startups had active partnerships with corporations, up from 25% in 2023.

Sector-Specific Growth
Fintech continued to dominate, drawing 31% of total funding. Healthtech saw a 75% boost in funding, while cleantech emerged as a rising star, with a 90% year-over-year increase in investment.

These combined efforts and achievements have set the stage for startups in West Africa to thrive even further in 2025. The ecosystem’s momentum shows no signs of slowing down.

1. Carbin Africa

Carbin Africa is reshaping West Africa’s automotive market with an AI-driven platform for buying and selling used cars. Co-founders Fawaz Abdul and Femi Oriowo, who bring expertise from Bolt and Cars45, have streamlined the process by consolidating 1,800 dealer listings into a single platform. This approach tackles the issue of fragmented inventories, offering real-time access for buyers and sellers. It’s a move that mirrors other forward-thinking initiatives in the region, like MTN’s API marketplace.

Technology Meets Market Needs

Using AI, Carbin Africa has built a centralized database of vehicle listings, addressing the disorganized nature of the market. This technology not only improves efficiency but also helps dealers move inventory faster. The co-founders’ industry background ensures the platform is designed with practical, data-focused solutions that bring transparency to the automotive sector.

Impressive Growth

In 2024, Carbin Africa achieved an 8x increase in monthly revenue, reflecting its rapid progress. Supported by 54Collective, a major player in the region’s $2.8 billion funding wave, the company has raised over $300,000 through two funding rounds, including a seed investment from 54Collective.

Carbin Africa’s success underscores the opportunities for tech-driven innovation in West Africa’s automotive market. It also highlights how local talent is transforming traditional industries with modern, scalable solutions.

2. Zone

Zone, founded by Obi Emetarom and Wale Onawunmi, is transforming financial infrastructure in Africa using blockchain technology. Originally known as Appzone Switch, it has evolved into a blockchain-powered payment gateway.

Strong Investor Confidence

Zone’s growth has been fueled by substantial investor backing. In 2023, the company raised $8.5 million in seed funding, led by Flourish Ventures and Venture Platform, with Visa also participating. This was followed by a $25 million Series A round in 2024, led by Tiger Global.

Lower Costs, Faster Transactions

Zone’s blockchain-based payment system is tackling regional financial hurdles head-on. It has cut cross-border transaction costs by 70% and enabled real-time settlements, replacing the traditional 2-3 day processing time. By 2024, the platform had processed over 5 million transactions for more than 1 million users in Nigeria, Ghana, and Côte d’Ivoire.

Key Partnerships

Through its collaboration with NIBSS via Zone Switch, the company has improved bank-fintech interoperability, handling over $1 billion in transactions annually. This aligns with Nigeria’s Startup Act objectives, contributing to a more connected financial ecosystem.

Supporting SMEs

Zone is making a direct impact on small and medium enterprises (SMEs) across West Africa. It supports over 50,000 SMEs, increasing cross-border transactions by 30% while reducing payment costs by 25%. This focus on local businesses highlights its role in driving regional economic growth.

3. GoLemon

GoLemon is making waves in West Africa’s SME banking space, tackling the challenges of limited access to formal financial services. It’s part of a broader shift in the region toward empowering small businesses through digital finance solutions.

The platform supports SMEs by offering digital banking services. With 50,000 businesses onboard and $100M in monthly transactions, GoLemon is scaling quickly. A $5M seed round in 2024, led by TLcom and Partech, has fueled this growth, aligning with the fintech sector’s dominance in regional funding (31%).

GoLemon’s tools are designed to simplify financial management for SMEs. Here’s what the platform offers:

Feature	What It Does
AI-powered credit scoring	Makes lending decisions based on data
Multi-currency accounts	Facilitates regional and international transactions
Integrated e-commerce tools	Lets businesses set up online stores directly
Supply chain financing	Provides working capital through verified transactions

Impact in Numbers

GoLemon has already brought banking services to 20,000 SMEs. On average, businesses using the platform see a 40% revenue boost in their first year, with these improvements contributing to the creation of about 15,000 new jobs.

Looking Ahead

Using a freemium model, GoLemon plans to expand to Ghana and Côte d’Ivoire by Q3 2025. The company is also collaborating with central banks to ensure regulatory compliance as it grows.

4. Kuda

Kuda has established itself as a leader in digital banking across West Africa since its launch in 2019, attracting 5 million users by 2025. This growth reflects the region’s fintech boom, with 31% of 2024 funding directed toward the sector.

The platform commands around 15% of Nigeria’s digital banking market. With strong backing from major investors, Kuda expanded its services to Ghana in 2023 and Côte d’Ivoire in 2024.

Service Category	Key Features
Core Banking	Zero-fee accounts, instant transfers, bill payments
Technology	AI-driven fraud prevention, voice-command transactions
Financial Inclusion	Micro-lending, financial literacy tools
Cross-Border	Blockchain-based international payments

Strategic Partnerships

Kuda has embraced collaboration with other companies to enhance its offerings. Key partnerships include:

Debit cards powered by Visa
Integrations with e-commerce platforms
Joint ventures in mobile money services

Advancements in Technology

In 2024, Kuda introduced voice-command transactions alongside AI fraud prevention systems. These advancements have solidified its position as a technology leader in West Africa’s banking sector.

Kuda plans to expand further into Senegal and Cameroon by the close of 2025, continuing to extend Nigeria’s influence in digital innovation to nearby markets.

5. Wave

Wave has carved out a strong position in Francophone Africa by focusing on mobile money services, setting itself apart from Kuda’s digital banking expansion. By 2025, Wave is expected to have 15 million active users across five countries, solidifying its role as a leader in West Africa’s mobile money market.

Market Leadership and Strategy

Wave’s success lies in its straightforward fee model, charging a flat 1% for cash withdrawals, a stark contrast to competitors who charge up to 5%. This approach has been particularly effective in Senegal, where Wave captured nearly 70% of the mobile money market within just three years.

Market Position (2025)	Key Metrics
Active Markets	Senegal, Côte d’Ivoire, Mali, Burkina Faso, Uganda
User Base	15+ million active users, >80% retention
Market Share (Senegal)	70%

Technology That Works Anywhere

Wave’s platform is built to function even in areas with poor connectivity, thanks to its offline-capable system. It also incorporates modern tools like QR code payment systems and AI-powered transaction monitoring, ensuring secure and efficient transactions.

Expanding Financial Access

Wave has transformed financial services in West Africa by making them more accessible. Its approach aligns with the region’s goal of connecting 30 million unbanked citizens, as mentioned earlier. The company’s low fees have pushed competitors to lower their charges and improve their services, creating ripple effects across the industry. Additionally, by 2025, over 5 million users will have completed financial literacy training through Wave’s initiatives.

Growth and Expansion

After securing $200 million in Series A funding in 2021, Wave has broadened its service offerings:

Category	Features
Core	Transfers, bill payments
Financial Tools	Microloans, savings options
Business	APIs, merchant tools

Wave’s influence has reached beyond customers, driving regulatory changes across West Africa. The company has been instrumental in developing fintech-friendly policies that benefit the entire sector.

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6. PaidHR

PaidHR is reshaping HR management in West Africa with its cloud-based solutions. Since its launch in 2021, this Nigerian startup has grown quickly, now serving over 500 businesses and handling payroll for more than 50,000 employees across the region. This growth aligns with the region’s 28% rise in tech talent development mentioned earlier.

Advanced HR Management Platform

PaidHR’s platform combines AI-powered workforce analytics with multi-country payroll capabilities, making it a standout choice. Its mobile-first design is particularly effective in West Africa, where mobile device usage far surpasses desktop reliance.

Feature Category	Capabilities
Core HR Functions	Payroll processing, Employee onboarding, Leave management
Advanced Tools	AI performance tracking, Compliance automation
Regional Adaptations	Multi-country support, Offline functionality
Integration Options	Local banking systems, Mobile money services

Business Growth and Market Influence

PaidHR’s influence on West African businesses is clear from its rapid expansion. In 2024, the company processed over $50 million in payroll transactions and achieved a 200% year-over-year revenue increase. A $5 million Series A funding round in late 2024 is set to drive its entry into East Africa and enhance its technology offerings.

Tailored Solutions for Regional Needs

PaidHR’s success comes from addressing specific regional challenges. Offline functionality ensures uninterrupted service even during connectivity issues. Collaborations with banks like GTBank and Ecobank simplify payroll processing. Additionally, the platform automates compliance with Nigeria’s Startup Act, enabling businesses to grow within the local regulatory framework.

Strategic Collaborations and Industry Standing

PaidHR has built strong partnerships to solidify its position in the market:

Partner Type	Key Collaborations
Financial	GTBank, Ecobank
Government	Tax authorities in 3 markets

Plans for 2025

Looking ahead, PaidHR plans to double its client base to 1,000 businesses in 2025. The company is also introducing secure digital credential checks and expects a 150% revenue increase, reaching $5 million. A free tier for micro-businesses positions PaidHR to dominate the digital HR space in West Africa.

7. Kofa

Kofa is making waves in West Africa’s fintech sector by focusing on financial tools designed for small and medium-sized enterprises (SMEs). Founded in 2022 by Akinwande Oluwole and Adeyemi Adewole, Kofa offers solutions that complement digital banking platforms like Kuda and Wave, tackling challenges in financial inclusion with a specialized toolkit.

What Kofa Brings to the Table

Kofa’s platform provides a range of fintech solutions tailored to SME needs:

Feature Category	Key Capabilities
Core Banking	Digital payments, Transaction management
Business Tools	Automated tax calculations and filings
Security	End-to-end encryption, Multi-factor authentication

Growth and Market Presence

Kofa has quickly gained traction, processing over $500 million in transactions for more than 100,000 SMEs by 2024. With $67 million in total funding since its launch – including a $50 million Series B round in 2024 – the company is scaling rapidly.

Supporting Regional Development

Kofa’s influence goes beyond its direct services:

Over 1,000 individuals trained through its fintech academy.
These programs contribute to the 28% growth in tech talent development reported earlier.

Partnerships That Drive Progress

Kofa collaborates with key organizations to enhance its services, especially in cross-border transactions and regulatory compliance.

Partner Type	Key Collaborations
Financial	Cross-border infrastructure with Ecobank
Government	Tax automation with FIRS

Plans for 2025

Kofa has ambitious goals for the near future:

Grow its user base to 250,000 active SMEs.
Process $1.5 billion in transactions.
Launch a marketplace for integrated business services.

With systems fully aligned with the Nigeria Startup Act, Kofa continues to play a pivotal role in advancing West Africa’s digital financial landscape, focusing on empowering SMEs and strengthening the region’s fintech ecosystem.

8. Yellow Card

Yellow Card is making waves in cryptocurrency solutions across West Africa’s remittance corridors, a space traditionally dominated by fintechs focused on banking. By 2024, the platform is projected to serve over 1 million users, contributing to the region’s broader goal of connecting 30 million people to financial services. Their $40 million Series B funding in 2022 has been instrumental in driving this growth, supported by Nigeria’s Startup Act, which provides a framework for digital asset regulation.

Service Portfolio

Service Category	Features
Trading	Supports local currencies, integrates mobile money
Accessibility	50,000+ cash-to-crypto agents available
Education	Offers workshops in multiple languages and SMS-based tutorials

Cross-Border Impact

Yellow Card processes an impressive $100 million in cross-border remittances every month. Its technology infrastructure is built to handle thousands of transactions per second, ensuring smooth operations. Beyond technology, the platform has created over 200 direct jobs in the region, bolstering local financial systems.

2025 Targets

Goals for 2025
3 million users across 15 countries
$500 million in monthly remittances

This growing crypto ecosystem is paving the way for advanced technologies like Lengo AI to emerge and thrive in the region.

9. Pixii Motors

Pixii Motors is stepping up to solve a major problem in West Africa: urban transport. Launched in 2021, the company focuses on electric scooters to address the region’s $3 billion urban mobility gap. Starting in Tunisia, Pixii Motors is now expanding into Nigeria and Ghana to bring its solutions to more cities.

Smart Mobility Solutions

Pixii Motors’ electric scooters come equipped with IoT-enabled dashboards, providing users with real-time data about their scooters’ performance. This not only helps keep maintenance costs low but also improves profit margins for businesses using the scooters. Additionally, the company’s cloud-based software supports scalable subscription options, making it easier to manage operations and grow.

Business Model Components	Details
Revenue Structure	Subscription-based service
Breakeven Timeline	18 months per unit
Target Markets	Urban centers, last-mile delivery
Technology Integration	Smart dashboards, scalable software

Environmental and Economic Impact

Pixii’s scooters cut CO2 emissions by 40% per kilometer compared to traditional gasoline-powered options. This makes them a cleaner choice for urban transport. Plus, they improve delivery efficiency, which is a huge win for Lagos’ $500 million e-commerce sector. By addressing environmental concerns and last-mile delivery challenges, Pixii Motors is helping e-commerce businesses thrive in the region.

2025 Expansion Plans

With a $1.5 million seed round, Pixii Motors is gearing up to scale production, set up distribution hubs in Nigeria, and integrate their scooters with delivery platforms. This plan aligns with West Africa’s goals for cleaner cities and supports the rapid growth of e-commerce in the region.

10. Lengo AI

Lengo AI is tapping into West Africa’s $500M e-commerce growth, as highlighted by Pixii Motors, by using localized machine learning to refine digital commerce. The startup focuses on natural language processing and machine learning, addressing the language diversity challenges noted by the French-West African Digital Campus initiative.

By combining on-the-ground field agents with AI-powered analysis, Lengo AI collects real-world data while pinpointing market trends. This method delivers real-time insights, especially in regions where traditional data gathering methods face obstacles.

After expanding into key West African markets, Lengo AI now supports over 100 clients in banking, e-commerce, and government sectors. In a 2024 pilot with GCB Bank, their language models cut response times by 62% and increased satisfaction scores by 28%.

What sets Lengo AI apart is its AI model, which is specifically trained on West African languages and cultural contexts. This tailored approach allows businesses to conduct more precise communication analysis, making it a game-changer for financial institutions, e-commerce platforms, and government agencies looking to enhance customer engagement.

Market Sectors and Growth Areas

West Africa’s startup scene is expanding rapidly, with multiple sectors showing strong potential. Digital payments are expected to reach $230 billion by 2025, fueled by the growing use of mobile money. Companies like Zone and Kuda are leading the charge in this space, reflecting fintech’s dominance.

E-commerce and retail tech have secured their place as the second-largest sector, accounting for 22% of regional funding in 2023. This growth is driven by better logistics networks and higher internet usage, especially in countries like Nigeria, Ghana, and Côte d’Ivoire, where digital marketplaces are gaining traction.

Sector	Funding	Key Drivers
Fintech	37%	Digital payments, mobile banking
E-commerce	22%	Digital marketplaces, logistics
Healthtech	8%	Telemedicine, AI diagnostics
Agritech	5%	Smart farming, supply chain
Cleantech	3%	Solar energy, electric mobility

Healthtech startups are tackling gaps in healthcare infrastructure with telemedicine platforms. For instance, Kofa is addressing these challenges, making healthcare more accessible.

Cleantech and renewable energy startups are also drawing attention, particularly in solar and electric mobility solutions. Companies like Pixii Motors are leading the way with innovative approaches to electric transportation.

AI is making waves across various sectors, with companies like Lengo AI and PaidHR showcasing its potential. Lengo AI is advancing language models, while PaidHR focuses on compliance automation. Additionally, partnerships between startups and corporations in fintech and energy are setting the stage for even faster growth by 2025.

Looking Ahead

West Africa’s startup scene is set to grow, fueled by better internet access and updated policies that could transform key industries. This progress builds on the efforts of startups in fintech, mobility, and AI.

Our 2025 watchlist highlights companies that are changing old business models while tackling important local challenges. These startups are driving regulatory changes, such as Nigeria’s rollout of new fintech licensing categories.

Area of Impact	2025 Focus
Employment	Growth in tech jobs (+9% annually)
Integration	Aligning systems across borders
Adoption	Scaling with mobile-first strategies

The ecosystem is catching the eye of global investors, bringing in venture capital and building partnerships between startups and established industries. As these companies grow, their emphasis on profitability and working with traditional institutions sets them up for influence that will go beyond 2025.