In 2025, East Africa’s startup ecosystem is booming, driven by sectors like climate tech, fintech, and ed-tech. The region attracted $725 million in venture capital in 2024, with climate tech surpassing fintech as the top-funded sector. Startups like Twiga Foods, M-KOPA, and Poa! Internet are solving challenges in food supply, energy access, and affordable internet. Here’s a quick overview of the 10 startups reshaping East Africa:
- Twiga Foods: Streamlines food supply chains, reducing waste and supporting small retailers.
- M-KOPA: Expands energy and financial access with pay-as-you-go solar systems and e-mobility solutions.
- Poa! Internet: Delivers affordable internet to underserved areas with smart towers and community-focused pricing.
- Sendy: Optimizes logistics for businesses with an asset-light platform and driver support services.
- Kwara: Digitizes SACCOs with tools for automated banking and financial inclusion.
- Solar Freeze: Provides mobile solar-powered cold storage to reduce food waste.
- BuuPass: Modernizes intercity travel with digital booking for buses, trains, and flights.
- Farmshine: Connects farmers directly to buyers via a digital marketplace.
- Lami Technologies: Simplifies insurance distribution with API-driven solutions.
- Pezesha: Bridges the financing gap for MSMEs with smart credit scoring and embedded finance.
These startups are leveraging technology to tackle regional challenges, improve livelihoods, and drive economic growth. Dive into the article to explore their impact and future plans.
Top 5 African Fintech Startups to Watch in 2025
1. Twiga Foods
Twiga Foods is reshaping East Africa’s food supply chain with tech-driven solutions, making a big impact in Kenya and Uganda. Since its start in 2014, the company has grown into a major player, supporting over 140,000 small retailers in the region.
At its core, Twiga operates a B2B marketplace that directly links farmers to vendors through a mobile-based, cashless platform. By cutting out middlemen, the company has reimagined how food gets from farms to markets. Twiga’s trucks travel an impressive 12,000 kilometers daily, delivering around 2 million kilos of produce to over 12,000 customers.
The platform offers more than just logistics. Vendors benefit from 24-hour farm-to-vendor delivery, cashless transactions, Buy Now Pay Later options, and business training designed for micro, small, and medium enterprises (MSMEs).
“Through Twiga’s model, we can start to lower the price of basic goods and services for consumers, which in turn reduces the amount of disposable income they’re spending on basic necessities.” – Peter Njonjo, CEO and co-founder of Twiga Foods
Twiga has also made a noticeable dent in food waste. By streamlining its supply chain, the company has reduced post-harvest losses from 30% to just 4% within its network. This not only saves costs but also brings environmental benefits.
The company’s reach is impressive:
- 65% of its vendors are women
- 45% are young adults aged 25 to 34
- Twiga accounts for about 25% of Kenya’s retail market
With operations now in Uganda and over 20 locations between the two countries, Twiga’s growth is undeniable. The company has raised $185.4 million through 19 funding rounds, reflecting strong investor trust in its vision to transform food distribution in East Africa.
Twiga’s tech-driven approach is particularly effective in informal neighborhoods. By using data insights, the company tackles inefficiencies in the market, reduces gaps in information, and helps stakeholders make smarter decisions.
Next, we’ll look at another startup making waves in East Africa’s digital services sector.
2. M-KOPA
M-KOPA has reshaped energy access in East Africa with its pay-as-you-go solar systems. Launched in 2011 by former M-PESA executives, the company started with solar energy and has since grown into a digital financial services platform operating in Kenya, Uganda, Nigeria, Ghana, and South Africa. Their model is simple yet effective: a solar system costing $200 can be purchased with an initial $35 payment, followed by daily installments of $0.50 via mobile phones. In Kenya alone, households previously spent over $1 billion annually on kerosene lighting.
The impact of M-KOPA’s approach has been far-reaching:
| Metric | Achievement |
|---|---|
| Lives Reached | 23+ million |
| CO2 Emissions Reduced | 2.1 million tonnes |
| Credit Extended | $1.5 billion |
| Monthly Clean Energy Hours | 87.5 million |
| Jobs Created in Kenya | 16,000 |
Customer feedback highlights the financial benefits:
- 86% of Nigerian users report higher income
- 78% of Ugandan users have seen income growth
- 77% of Kenyan users report financial improvements
“M-KOPA allowed me to purchase a phone that has greatly improved how I run my food business. The payment plans were manageable, making it easier for me to focus on serving my customers.”
– Sadia, 3 Millionth Customer
M-KOPA has also ventured into e-mobility, rolling out over 1,500 electric motorbikes, helping riders save 30% on daily costs. Additionally, the company established a smartphone assembly plant in Kenya, producing more than 1.5 million devices and contributing over KES 17.2 billion to the local economy. These efforts underscore M-KOPA’s broader push for digital inclusion.
Their solar systems provide clean, dependable energy for LED lighting, radios, and phone charging. According to surveys, 80% of customers report improved living conditions.
“At dusk in Tanzania, I can keep helping my younger brother with his homework thanks to the solar light. I have noticed an improvement in his studies especially in Mathematics.”
– Sadiki Athumani
With no need for collateral or proof of income, M-KOPA has connected over 700,000 homes to affordable solar power, adding around 500 new homes to its network every day.
3. Poa! Internet
Poa! Internet is addressing one of East Africa’s biggest hurdles: affordable internet access. With 820 million Africans still offline and 65% of Kenya’s population living in rural areas without reliable services, Poa! Internet has introduced its Poa Smart Tower Network to bridge this gap.
By the Numbers:
| Metric | Achievement |
|---|---|
| Active Smart Towers | 200 |
| Residential Clients | 30,000 |
| Public WiFi Users | 25,000 |
| Public WiFi Hotspots | 40,000 |
| Daily Free Data Allowance | 100MB |
This extensive network supports an affordable pricing model that directly benefits communities. Home internet plans start at KES 1,575 ($11.50) per month or KES 450 ($3.30) weekly. Public WiFi users can buy 1GB of data for just KES 20 ($0.15), with no expiration. These rates make internet access far more accessible, with data costs accounting for only 0.05% of GNI per capita, compared to the national average of 2.62%.
How It Works:
Poa! Internet stands out with its unique strategies:
- Using unlicensed spectrum to lower service costs.
- Partnering with local businesses to resell internet access.
- Offering free connectivity to institutions like schools and community centers.
- Running its own network infrastructure for better efficiency.
“By providing reliable, affordable and unlimited internet access we hope to improve the lives of millions by creating digital inclusion and giving them access to information and services that they would not receive otherwise.” – Poa! Internet
In March 2023, Poa! Internet teamed up with Africa50 to launch a program providing free internet to over 4,000 students in underserved Kenyan communities. This initiative included upgrading 10 schools with better bandwidth and coverage.
“Poa! is all about connecting the unconnected communities of Africa, creating opportunities for growth, learning and economic stimulus through digitization. We believe that connecting schools is instrumental in bridging the digital divide. We believe that this wonderful addition to the already existing strong partnership with Africa50 will positively impact the communities that we serve. Together with Africa50, Poa! Internet is keen on bridging the continent’s digital divide.” – Andy Halsall, Poa! Internet’s CEO
Technology and Expansion:
Poa! Internet uses telecom fiber connections to redistribute bandwidth to customer antennas through radio frequencies. This setup allows them to deliver consistent service to areas that were previously unreachable.
In 2022, the company secured major funding to expand its reach in Kenya and develop technologies to further reduce costs. Their focus on digital inclusion, cutting-edge solutions, and affordable pricing solidifies their role as a key player in transforming internet access across East Africa.
4. Sendy
Sendy is reshaping East Africa’s logistics scene with its asset-light platform that connects businesses with independent drivers – think of it as ride-hailing, but for goods.
Platform Performance
Sendy’s success is evident in its operational metrics:
| Metric | Achievement |
|---|---|
| Market Value (Kenya) | $10 billion |
| Target Market (East Africa) | $2 billion |
| Active Vehicles | 5,000 |
| Major Enterprise Clients | Unilever, DHL, Maersk, Safaricom, Jumia |
The platform offers features like real-time tracking, optimized routing, and better vehicle utilization, giving businesses more control over their logistics.
“Our goal is to power commerce in Africa by making logistics simpler, more efficient, and accessible for businesses of all sizes.” – Meshack Alloys, Co-Founder of Sendy
Driver Support Ecosystem
One of Sendy’s standout features is its strong focus on driver support. The company provides:
- Insurance
- Health coverage
- Vehicle financing
- Maintenance services
- Fuel credit options
These offerings help drivers stay competitive and ensure reliability in a challenging logistics market.
Market Challenges and Adaptation
The logistics sector in East Africa faces hurdles like poor infrastructure, fluctuating fuel prices, and changing regulations.
“A well-functioning logistics sector is key to economic development and competitiveness. However it is often overlooked when analyzing and discussing the impact of investments.” – Brigit van Dijk – van de Reijt, CEO of DOB Equity
Sendy’s pay-as-you-go model offers an affordable and flexible approach to these challenges. As governments in the region work toward streamlined regulations, Sendy continues to evolve its platform by integrating AI and automation to boost efficiency and stay ahead in an ever-changing market.
5. Kwara
Kwara is changing the game for SACCOs in East Africa with its digital banking platform. Here’s what the numbers say about its impact:
| Metric | Achievement |
|---|---|
| Monthly Transaction Volume | $40 million |
| Active Credit Unions | 230 |
| End Client Base | 200,000+ |
| Member Growth Rate | 5x industry average |
| Platform Uptime | 99.9% |
Since adopting Kwara’s platform in 2017, KCS SACCO has nearly tripled its membership and expanded both its asset base and international presence.
“The SACCO industry in Africa was transformed when Kwara came in. SACCOs and indeed Karura Community can now affordably compete through digitisation. What seemed impossible Kwara has made possible.” – Gitonga, CEO – KCS SACCO
Kwara’s platform stands out for its mix of essential tools and ease of use:
- Automated loan approvals and registrations
- A mobile app for deposits and account tracking
- Open API for seamless payment integration
- Built-in compliance tools
“We are building a solution for people – an estimated 1 billion – who do not currently have access to personalized banking services. This is the result of a gap in banking-grade technology and the lack of neobank-like experiences for the end clients.” – Cynthia Wandia, CEO of Kwara
Kwara’s efficient design and reliability have earned praise from industry experts.
“The robust and agile cloud system has so far had a 100% record uptime as well as nil cyber-attacks. I do not therefore hesitate to recommend the Kwara core banking system to any prospective SACCO that is keen to take their service touchpoints to the next level.”
Operating in Kenya, the Philippines, and South Africa, Kwara is helping digitize traditional sectors, driving financial inclusion and growth in emerging markets.
6. Solar Freeze
Solar Freeze is tackling one of East Africa’s biggest agricultural challenges: food waste caused by poor cold storage. In developing countries, nearly 45% of food spoils due to the lack of proper facilities, and Solar Freeze is stepping up to change that.
Here’s a snapshot of their impact so far:
| Metric | Result |
|---|---|
| Reduction in Post-Harvest Loss | 95% |
| Increase in Farmer Income | 150% |
| Produce Shelf Life Extension | From 2 days to 40+ days |
| Farmers Supported | 3,000 smallholders |
| Women Entrepreneurs Engaged | Over 200 |
| Storage Cost | $0.002-$0.005 per use |
Founder Dysmus Kisilu explains the motivation behind the project:
“We watched our parents, grandparents, and those before them work tirelessly, they toiled in the rural farms only for a significant portion of their fresh produce to rot away due to lack of proper cold storage units”.
Solar Freeze’s solution combines several innovative elements:
- Mobile cold storage units powered by solar energy
- Accessibility via mobile apps and SMS services
- Refrigerated transportation options
- Improved market access for farmers
- Training programs to build skills
Their approach has been especially beneficial for women, with 80% of their users being women farmers. By extending the shelf life of produce in areas with unreliable electricity, they’re helping ensure food security and boosting incomes. Looking ahead to 2030, Solar Freeze aims to reach 30,000 farmers with its sharing-economy model, offering low-cost cold storage to address a major regional need.
7. BuuPass
BuuPass is reshaping intercity travel by bringing digital solutions to a market that has largely relied on cash transactions. With 95% of African intercity transport still operating through offline methods, BuuPass provides a modern platform for booking and paying for travel.
Here’s what they’ve achieved so far:
| Metric | Numbers |
|---|---|
| Total Ticket Sales | Over $100 million |
| Passengers Served | 16+ million |
| Active Bus Companies | 29 |
| Fleet Size | 1,200+ vehicles |
| Monthly Active Users | 650,000 |
| Localities Covered in Kenya | 650+ |
| Localities Covered in Uganda | 80+ |
The platform simplifies booking for buses, trains, and flights while supporting digital payments like M-Pesa and credit cards. It also offers analytics tools that help transport operators improve bookings and revenue.
Since 2017, BuuPass has partnered with Kenya Railways to digitize nearly all train ticketing operations. Their collaboration with Easy Coach highlights their effectiveness. Founder Azym Dossa shared:
“BuuPass has been a game-changer for our business. Since adopting their digital booking system, we have increased customer satisfaction, operational efficiency, and significant revenue growth. With over 10 million bookings and service to more than 100 destinations in Kenya, our partnership with BuuPass has been nothing short of extraordinary.”
Looking ahead, BuuPass plans to expand into eight new markets by 2025, starting with Tanzania. Co-founder Sonia Kabra outlined their approach:
“Our playbook involves B2B sales for bus digitisation, B2C marketing, and partnerships with telcos and banks. However, we are overcoming these challenges through a focused expansion playbook, strengthening our team, and honing our go-to-market models.”
The recent acquisition of QuickBus has expanded their reach into Nigeria and South Africa, while also deepening partnerships with major banks and telecom companies. This positions BuuPass to address the growing demand for digital transit solutions, especially in Kenya, where road transport accounts for 80% of the market.
BuuPass showcases how East Africa is embracing digital tools to modernize long-standing industries.
8. Farmshine
East Africa’s agritech sector is evolving rapidly, and Farmshine is at the forefront of this shift. By connecting smallholder farmers directly with industrial buyers through a digital marketplace, Farmshine is reshaping traditional agricultural trading. The platform removes middlemen and simplifies supply chain operations, making the process more efficient for everyone involved.
Here’s what Farmshine brings to the table:
| Feature | Advantage |
|---|---|
| Direct Market Access | Links farmers directly to industrial buyers, cutting out intermediaries. |
| Quality Verification | Provides tailored quality checks and certifications. |
| Secure Payments | Ensures safe digital payment processing with buyer protection. |
| Logistics Integration | Handles supply chain management from start to finish. |
| Market Intelligence | Offers transparent, real-time market data to inform decisions. |
Farmshine also leverages AI and IoT tools to help farmers improve planting, harvesting, and selling practices. Using blockchain, the platform ensures full supply chain traceability, addressing the growing demand for transparency among consumers.
“The agriculture sector is changing, and the revolution is as a result of technological development. The concept of smart farming involving the use of advanced technologies such as AI, IoT, and big data analytics is defining the future of agricultural practices and is currently generating a tidal wave of opportunities for agritech startups.”
Looking ahead, Farmshine plans to expand its offerings by 2025 with the following advancements:
- Generative AI to provide real-time crop analysis and market forecasts.
- IoT sensors for automated crop monitoring and quality control.
- Blockchain-based tracking for enhanced supply chain transparency.
- Climate-smart farming tools to offer tailored recommendations for sustainable practices.
Farmshine is a clear example of how digital tools are driving progress in agriculture, delivering practical benefits to farmers while encouraging eco-friendly methods.
9. Lami Technologies
Lami Technologies is reshaping the insurance sector in East Africa with its API-driven platform, which simplifies and digitizes interactions between underwriters and businesses. With the region’s insurance penetration at just 2.78%, far below the global average of 7.23%, Lami is addressing a critical gap.
Its influence is clear through strategic collaborations and tech-driven solutions:
| Partnership | Innovation | Impact |
|---|---|---|
| Sendy | Per-trip transit insurance | Offers transit coverage |
| Lipa Later | Default protection | Secures buy-now-pay-later transactions |
| Stanbic Bank | Bancassurance integration | Enables digital insurance products |
| Kwara | SACCO member coverage | Supports 60,000+ credit union members |
These collaborations have expanded Lami’s offerings while improving efficiency. The platform now reduces insurance acquisition time to under two minutes and processes claims within a week – far faster than the typical three-month industry standard.
With API integration across 15+ entities and partnerships with 25 underwriters, Lami creates tailored insurance products that streamline onboarding and improve service delivery.
“Ninety-seven percent of Africans lack access to insurance – a financial safety net that can help them build resilience against economic shocks. Lami helps address this need for consumers across Africa through its innovative approach that leverages technology and partnerships to help any business develop and sell insurance.”
– Michael Schlein, President and CEO, Accion Venture Lab
Lami’s ambitions align with East Africa’s broader tech evolution, aiming to:
- Reach 50 million customers across Africa
- Process over $1 billion in premiums
- Expand into Nigeria and Malawi
The company’s self-service dashboards and chatbots make insurance more accessible and user-friendly. A recent $3.7M seed extension led by Harlem Capital highlights investor trust in Lami’s ability to bridge Africa’s insurance gap.
“I think insurance is one part of financial inclusion that has really been ignored. It brings about a lot of security because here in most of Africa, people rely on single sources of income. So, for us, we are really excited to be able to do that and to provide a safety net for people as they transact on a day-to-day basis.”
– Jihan Abass
Lami is well-positioned to make insurance accessible and redefine financial safety nets across the continent.
10. Pezesha
Pezesha addresses the $328 billion financing gap for MSMEs in Sub-Saharan Africa through its digital lending platform. Licensed by the Central Bank of Kenya as a Digital Credit Provider, Pezesha has grown into a wide-ranging financial platform.
Here’s a snapshot of Pezesha’s progress so far:
| Metric | Achievement | Goal |
|---|---|---|
| Registered SMEs | 200,000+ | 1 million by 2024 |
| Total Loans Distributed | 400,000+ | Continued expansion |
| Business Owners Supported | 50,000+ | Scaling across Africa |
| Jobs Created | 100,000+ | Further growth anticipated |
Pezesha uses advanced technology to simplify credit access. Its Patascore 2.0 system processes over 100 million transactions to provide instant credit assessments and real-time fund disbursement, bringing financial services to underserved businesses.
“In our 7-year journey of resilience, we’ve supported over 50,000 small business owners, such as Rose, creating more than 100,000 employment opportunities through our working credit support. As we look ahead to 2024, we aim to impact 1 million SMEs – a challenging yet achievable goal with our dedicated team and strategic partnerships.”
– Hilda Moraa, Founder and CEO of Pezesha Africa
What sets Pezesha apart are three key elements:
- Smart Credit Scoring: Uses diverse transaction data for accurate assessments.
- Financial Education: Offers integrated learning modules for users.
- Embedded Finance: Partners with FMCG companies to provide seamless financial solutions.
“I could not access a loan from the banks due to my inability to provide collateral. My Pezesha loans enabled me to expand my business and meet all my running costs. I now own 3 stalls. I have also trained and employed over 10 youths to help them make a living in the metal works and welding sector.”
– Njogu, Metal work (Juakali), Kenya
“Pezesha is revolutionizing SME financing in Kenya, and we eagerly anticipate their listing on the exchange. With their embedded financing model, funds remain within the ecosystem and value chains, ensuring the safest form of lending. We are thrilled to embark on this journey with them.”
– Mr. Geoffrey Odundo, CEO of Nairobi Securities Exchange
Strategic partnerships further strengthen Pezesha’s mission. Collaborations with Jumia and Marketforce ensure transparent lending and fair interest rates. In March 2024, Pezesha teamed up with FSD Kenya to test financial products tailored for construction workers, reinforcing its dedication to financial inclusion. Pezesha’s efforts highlight East Africa’s momentum toward expanding access to financial services.
Looking Ahead: East African Startup Trends
The East African startup scene is evolving with trends that are likely to shape the entrepreneurial landscape well beyond 2025. These developments reflect the progress seen in innovative startups across the region.
| Sector | Growth Rate | Key Drivers |
|---|---|---|
| Digital Health | 23.4% CAGR (2024–2030) | Telemedicine, Mobile Health Apps |
| Healthtech | $11B by 2025 | AI Integration, Remote Care |
| Renewable Energy | $5B annual investment | Distributed Energy Solutions |
These numbers highlight three main trends driving future growth:
- Digital Health Revolution
East Africa faces a considerable shortage of healthcare workers, with only 1.55 healthcare workers per 1,000 people – far below the WHO recommendation of 4.45. Startups are stepping in, using technology to address these gaps.
“The reason why we brought Zencey to life is that we make it easier for patients to have access to high-quality medical services. We believe that by bringing modern and recent technologies into the healthcare sector, we can improve the experience for patients and health professionals alike.” – Yaya Mbaoua, Founder, Zencey
Other tech-driven healthcare startups in the region are employing similar strategies to enhance access and efficiency.
- Sustainable Energy Innovation
Investment in renewable energy has surged, jumping from less than $0.5 billion between 2000 and 2009 to $5 billion from 2010 to 2020. These funds are being used to tackle energy access issues, especially in remote areas, through distributed energy solutions.
- Regional Integration
The African Continental Free Trade Area (AfCFTA) is driving cross-border collaboration by easing trade barriers. Startups are building strong domestic operations, using mergers and acquisitions to enter new markets, and investing in digital infrastructure. This aligns with the region’s ongoing digital transformation efforts.
Kenya remains a leader in East Africa, attracting $3.3 billion in funding since 2019 – accounting for 84% of the region’s total investments. This dominance is supported by advanced digital infrastructure and regulatory frameworks.
In the second half of 2024, funding saw an 80% jump compared to the first half, reaching $1.4 billion. Key emerging sectors include:
- Fintech – Nearly half of 2024’s investments went here.
- Climate Tech – Focused on sustainable solutions.
- Agritech – Tackling food security challenges.
For startups looking to scale post-2025, success will hinge on navigating complex regulations while addressing local market demands. These trends are expected to drive further developments across various sectors.
