Nigeria’s LemFi and BFREE raised 30% of $135m total by African startups in May

Nigerian financial technology company LemFi was one of the pearls of the African funding scene in May, contributing $30 million during the month. The sum equals 22.2 per cent of the $135 million raised by startups on the continent during the month.

Indeed, May’s funding total, while representing a 23 per cent increase from the $110 million raised by African startups in April, nonetheless falls short of the same month last year, when startups around Africa raised $254 million.

This represents a significant 47 per cent decline.

Indeed, May 2026 appears to be the slowest of the last three years. Even in May 2024, when the continent was barely emerging from the funding winter, startups recorded an $187 million raise, driven by climate tech funding mostly from East Africa.

This equals a 38.5 per cent increase from last month’s numbers.

May 2026 also falls well below the last 12-month average of $255 million, a 47.05 per cent drop. Indeed, aside from trumping the previous month’s total raise, the month was a generally poor month in overall comparison.

This also doesn’t flatter 2026 as overall funding so far also appears to be dwindling.

So far in 2026, African startups have raised $843 million. By comparison, funding into the continent already crossed the billion-dollar mark by the same time in 2025, marking at least a 16 per cent drop.

Read also: 32 African startups raised $110m in April, the lowest in 12 months

37 African startups raised over $100k, led by Nala

37 African startups that raised at least $100,000 contributed to May’s total.

This is an improvement from 32 startups which contributed to the previous month’s total. This means that as the total funding rose month-on-month, so did the number of startups taking part in the largesse.

The total, however, falls short of the average of the last 12 months (45).

Tanzanian fintech Nala led startup funding during the month, securing $50 million in debt financing. The credit facility was provided by Liquidity, the global AI-driven private credit and technology provider, through Mars Growth Capital, a joint venture between Liquidity and MUFG Bank Ltd. The facility is non-dilutive.

Nala team

The financing comes as an initial $25 million facility, with a scale-up option of at least $50 million. This will provide working capital to fuel the startup’s global expansion, product development and the build-out of its next-generation neobank — all powered by its global stablecoin infrastructure.

Nigeria’s LemFi is next, having raised $30 million in a Series B extension. The latest financing adds to the $53 million raised upon the close of its initial Series B round in January 2025. It was led by Highland Europe and supported by Left Lane Capital, Palm Drive Capital, Endeavor Catalyst, and Y Combinator. 

Nigeria’s BFREE, founded by Julian Flosbach, Moses Njeru, and Chukwudi Eke, comes next, having closed $10 million in an equity round to scale its acquisition of non-performing retail and SME loan portfolios and expand across new markets.

BFREE

The round, led by AfricInvest through its Financial Inclusion Vehicle (FIVE), also witnessed participation from Algebra Ventures, which recorded its first Nigeria-focused deal, and existing investors including Capria Ventures, VestedWorld, and 4Di Capital.

The new capital will fund larger portfolio acquisitions for the startup and deepen partnerships with financial institutions, positioning it as a key infrastructure player in Africa’s credit ecosystem.

South Africa’s Africa GreenCo comes next, also raising $10 million in funding.