Africa-Based AI Startups Secure over $1 million in Funding this Year, with Egypt Emerging as the Front-Runner
In the heart of Africa, Egypt is making significant strides in the rapidly growing AI industry. The country is not only a leading hub for AI readiness in Africa but also a beacon for AI innovation and start-up growth.
Recently, Qme, an Egyptian startup, secured $3 million in seed funding. This funding will be used to improve Qme's technology stack, extend its market reach across the MENA region, and build stronger partnerships with businesses and governments. Founded by Maged Negm, a former executive at Orange Egypt, Qme has built an AI-powered platform to tackle inefficiencies in customer queueing and appointment booking.
Another Egyptian startup, Infinilink, raised $10 million in seed funding. Infinilink is focused on improving the development of optical connectivity solutions for AI-driven data centres. This investment will undoubtedly help Infinilink meet the growing demand for energy-efficient hardware solutions in Africa's data centre market, which is expected to reach $8.96 billion for 2022.
The AI sector in Africa is experiencing a surge, with its market size projected to increase from about $4.5 billion in 2022 to $16.53 billion by 2027, representing an average annual growth rate of approximately 27%. This growth is driven primarily by AI adoption in key sectors such as finance, agriculture, and healthcare.
Egypt is actively building AI capacity with plans to train thousands of AI professionals and establish AI companies by 2030, positioning it at the forefront of the continent’s AI ecosystem. The Egyptian government launched its national AI strategy in 2021 and aims to enable and support the establishment of 250+ successful AI companies by 2030.
The AI start-up scene in Egypt is thriving, with eight start-ups raising over $1 million each this year. Cerebium, a startup focused on AI-driven education, raised $8.5 million to develop its adaptive learning platform. Cerebium, headquartered in New York, was founded by the co-founders who previously worked at OneCart, a South African online grocery platform.
The funding round for Cerebium was led by Gradient, Google's AI venture fund, with participation from Y Combinator, Authentic Ventures, and other angel investors. Cerebium helps developers deploy and manage AI applications by streamlining development cycles and saving costs on expensive servers.
In the finance world, NOSIBLE offers a search engine API and a platform that provides specialised AI agents designed to simplify asset management tasks. NOSIBLE, a South African startup, raised $1 million in a pre-seed round in March 2025.
Leta, an AI-powered logistics startup based in Nairobi, secured $5 million in a seed round in March 2025. Leta provides businesses with tools for intelligent route optimisation and shipping insights. The funding for Leta will be used to expand into new countries, improve their technology stack, and increase reach in existing markets.
Open-source models like DeepSeek and OpenAI's open-weight offerings present an opportunity for AI start-ups in Africa to lower infrastructure costs. These models can help start-ups focus on developing innovative solutions rather than building and maintaining expensive infrastructure.
Despite the enthusiasm and growth potential, limitations in digital infrastructure and AI expertise concentration in certain countries pose obstacles for continent-wide AI adoption. However, efforts are being made to address these challenges. For instance, Africa's data centre revenue is expected to reach $8.96 billion for 2022, creating a growing interest in energy-efficient hardware solutions like those offered by Infinilink.
In conclusion, Egypt is a leading player within Africa's rapidly expanding AI sector, with a growing start-up ecosystem and supportive initiatives positioning the country as a regional AI hub amid a broader continental surge to a $16.53 billion AI market by 2027. The AI sector in Africa is poised for significant growth, with opportunities for start-ups to make a meaningful impact in various sectors.
- Egypt's AI sector is experiencing significant growth, with startups like Qme and Infinilink securing funding for technology advancements and market expansion.
- The AI industry in Africa is projected to increase from $4.5 billion in 2022 to $16.53 billion by 2027, with key sectors such as finance, agriculture, and healthcare adopting AI.
- The Egyptian government is actively investing in AI capacity, aiming to train thousands of AI professionals and establish AI companies by 2030.
- Startups such as Cerebium, focused on AI-driven education, and NOSIBLE, offering specialized AI agents for asset management, are securing funding to improve technology and expand their reach.
- Open-source models like DeepSeek and OpenAI's open-weight offerings are helping African AI startups lower infrastructure costs, allowing them to focus on innovation.
- Despite challenges in digital infrastructure and AI expertise concentration, Africa's AI market is poised for growth, with opportunities for startups to make a meaningful impact in various sectors.
