Twenty-seven days into 2025, and the M&A market is off to a brisk start. South African fintech startup Stitch has acquired payments startup ExiPay, marking the first major deal of the year. The acquisition allows Stitch to offer online and in-person payment solutions for large enterprises, giving it a stronger foothold in the enterprise sector.

The pace of 2025 is already faster than 2024, when the first big deal didn't come until February – Carbon's acquisition of Vella Finance. This early momentum suggests we might see more deals lining up faster this year. M&A lawyers, you've been warned: your calendar is about to get packed.

Startups are waking up earlier, looking to acquire rather than build from scratch. Stitch CEO Kiaan Pillay made that clear in a call with TechCabal, explaining that building ExiPay's in-person payment tech internally would've taken 18–24 months – slowing down their strategy to fill a crucial gap. By acquiring ExiPay, Stitch got the solution it needed, fast.

It's a strategy we're seeing elsewhere, too. SeamlessHR, for instance, considered acquiring PaidHR twice to bolster its HR-tech offerings. With consolidation becoming the name of the game, startups are increasingly looking to acquire businesses that complement their existing products, not just build new ones.

M&A isn't just about growth; it's about gaining competitive advantage. Whether it's access to new tech, licenses, or market share, acquisitions are becoming a core strategy for African tech companies eager to solidify their positions in a cutthroat market.

A promising start for 2025 – let's see if the rest of the year can keep up.

Bonus: How much did Stitch pay to acquire ExiPay? That's not been disclosed, following a trend of African startups being shy about sharing how much things cost.

In other news, Bento Africa faces scrutiny from the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC) amid allegations of failing to remit tax and pension payments on behalf of clients. The allegations, which date back to 2023, triggered a client exodus. Bento's CEO, Ebun Okubanjo, confirmed the investigations but insists the company is addressing the issues, pointing to Nigeria's "manual" tax remittance process as the culprit.

Tanzania will roll out a new currency next month, with the Bank of Tanzania (BoT) introducing new notes to combat counterfeit currency. The move follows Sudan's recent currency change, which aimed to stabilize its war-torn economy.

Kenya has received a credit rating upgrade from Moody's Investors Service, changing its outlook from negative to positive, signaling renewed confidence in Kenya's ability to manage its debt and lower financial risks. Moody's highlighted better debt affordability and reduced borrowing costs, which could help the government access funds from global lenders more easily.

Stay tuned for more updates from the world of tech in Africa.