Startups in Nigeria Raises Over N123.4billion in Six Month, Makes Africa's Big Four

Startups in Nigeria Raises Over N123.4billion in Six Month, Makes Africa's Big Four

  • Nigeria was the second African country on highest startup fundraising list, falling behind South Africa, as they both raised over N123.4 billion funds
  • Flutterwave raised the highest capital among its peers in Nigeria, where the likes of Kwik Delivery, Kuda, Appzone, Termii and Bankly operate
  • Startups owned by men still recorded the highest investment compared to women-owned businesses, but female entrepreneurs saw a surge in funding

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Nigerian startups raised over N123.4 billion in the first half of 2021, a new report released by Maxime Bayen, a Senior Venture Builder for Catalyst Fund at BFA Global, showed.

These funds were mostly raised by big names in the country's financial technology space, Flutterwave, Kwik Delivery, Kuda, Appzone, Termii and Bankly.

What you need to know

It was stated that in terms of funds secured by an African nation, Nigeria came behind South Africa, whose startups also raised over N123.4 billion in capital.

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Over $300 million was raised by Nigerian startups in first half of 2021
People catching money. Photo: Dave Nagel
Source: Getty Images

In total, Startups from the African continent raised about $1.19 billion during the period under review, with South Africa and Nigeria accounting for 28% and 27%.

While Nigeria, Kenya, South Africa and Ghana contributed 80% of the capital raised by African startups - these countries are known as the ‘Big Four’ of Africa.

Male founders received more funds compared to women

Women-owned or led startups are gradually closing the finance gap between them and their male counterparts, as their fundraising rose to 14% in H1 2021, against 2% of last year's H1.

But still, male founders got the highest capital, and they accounted for 77% of the total capital secured. There have been intentional drive to increase capital access for women.

African investors are beginning to embrace local tech startups

There was also an increase in African investors involvement in the tech space as 40% participated in more than one deal, while 87% American investors took part in not more than one deal.

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Further breakdown showed that out of 369 investors who contributed at least $100,000 capital into African tech space, 110 are from Africa, but the United States remain the highest participants with 133.

Note that in the first ten days of the second quarter, over $150 million has already been raised, and the industry has been projected to experience positive fundraising growth.

Nigerian startup, Lidya, raises N3.41 billion

Nigerian financial technology company, Lidya, raised N3.41 billion from several investors such as Bamboo Capital Partners, and Accion Venture Lab.

Flourish Ventures and uMunthu Fund also invested capital into Lidya which is co-owned by Tunde Kehinde and Ercin Eksin, both of whom co-founded Africa Courier Express.

Lidya has raised a total of N6.78 billion having secured $1.3 million in a seed round in 2017 and another $6.9 million a year after.


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