Nigerian startups have emerged as top choices among global investors and venture capitalists who look to the country for juicy investment opportunities in Africa. These startups have developed cutting-edge products and services that have attracted global attention, making Nigeria a top investment destination on the continent.
According to reports, despite the global economic headwinds, Nigerian startups have maintained a surging interest among top funders in the world. They have attracted over $1.2 billion in funding in 2022, a slight decline from the $1.4 billion figure recorded in 2021.
Startups in Nigeria have crossed all the stages of funding, from pre-series D, with investors pouring millions of dollars into the ecosystem. Moniepoint – $55.5m The company, which has redefined the PoS business in Nigeria, announced its biggest funding of more than $50 million to grow its credit offerings in Africa’s biggest economy. Experts classified Moniepoint’s funding as a pre-series C round despite not having any letter attached to the capital funding.
Top investors were QED Investors and Novastar Ventures which poured $57.5 million into the financial institution after it successfully raised $5.5 million in a Series A round earlier this year. ThriveAgric -$65.4m The tech-driven agriculture start-up remains the most funded in the agricultural sector in Nigeria and emerged as one of the top-funded startups. The firm’s latest funding round was $56.4 million in debt financing from commercial banks and investors announced in March 2023.
The development brought the total funding for the company to about $65.4 million after securing $9 million in funding from other investors. Konga – $79.5m The e-commerce company acquired by Zinox Technologies in 20018 had raised about $79.5 million before its acquisition. Its latest funding round was a $41 million series C round led by Naspers some eight years ago. The company also raised $25 million in Series B after a $10 million Series A round in 2013 and a $3.5 million seed round in 2012.
The neobank is among some of the most funded startups in Nigeria. The digital bank has raised a total of $19.6 million and the latest was a $55 million Series B round announced in August 2021. In March 2021, the bank raised $25 million in a Series A round by Valar Ventures, after raising $10 million in a seed round of $10 million led by Target.
TradeDepot – $123m The e-commerce platform which links international brands with small businesses in Africa raised a total of $123 million in funding and another $110 Series B in December 2021.
Lumos Global – $125m The Off-Grid Solar firm, Lumos Global has raised a total of $125 million with its latest round being a $25 million financing from the US International Development Finance Corporation (DFC) to grow its existing market for clean solar in Nigeria. The company also raised $90 million which includes $50 million debt and $40 million in equity.
The investors are Overseas Private Investment Corporation, Pembani Remgra Infrastructure Managers, VLTCM and ICV. Moove -$335 million The Nigerian tech-driven mobility firm has gotten funding from several investors, including $76 million raised in August 2023 led by Mubadala Investment firm.
It consists of $28 million in equity, $10 million in venture debt from funds and accounts, and $38 million in previously undisclosed funds in the last year. The company’s latest funding was in July 2023, when it announced its $8 million financing from Absa Corporate and Investment Banking to boost its existing Suzuki S-Preso vehicles assembled in Ghana.
Moove raised about $183.3 million across funding rounds and $135 million from January and June 2023. It came after another successful funding of $30 million in December last year. In 2022, Moove raised a total of $183.3 million across five funding rounds. It raised $135 million between January and June, then an additional $30 million in December. Andela – $381m Andela is currently valued at about $1.5 billion after it raised $200 million in the September 2021 Series E round through SoftBank’s Vision Fund 2.
The series round earned the company $381 million since it was established in Lagos in 2014. It previously raised $100 million in Series D in 2019.
Also, in 2017, Andela raised $40 million in Series C funding led by CRE venture capital with collaboration from DBL Partners. Amplo, Salesforce Ventures and TLCom Capital. Flutterwave – $475m The payment giant and Africa’s biggest unicorn raised a total of $475 million. Flutterwave’s latest funding came in February last year when it raised $250 million in a Series D round led by investors including Facebook’s co-founder, Eduardo Saverin’s capital firm B Capital Group and Boston-based hedge fund Whale Rock Capital Management.
The company raised $170 million in a Series C round from Tiger Global and Avenir at a $1 billion valuation. In 2020, Flutterwave raised $35 million in Series B and $20 million in Series A in 2018. OPay – $570m The company’s latest round came in August 2021 when it got $400 million led by SoftBank Vision Fund 2. The funding brought the company a $2 billion valuation.
Opay announced funding in 2019, including $50 million in June and $120 million in Series B in November. The Series C round was the largest on record in Africa’s tech scene which brought it at par with Jumia’s similar funding in 2016.
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