- Foreign investors are putting their money where their mouth is by investing in Nigerian entrepreneurs with innovative ideas
- Shuttlers, a bus company, is the most recent to get funding, and it will join the ranks of other Nigerian digital start-ups that have scaled up after investment
- TeamApt, one of the successful foreign investor-backed businesses, is now raising its third round of funding in order to boost its market value to over $1 billion
Nigeria continues to be a bride for global investors interested in championing bold ideas by African startups.
Shuttlers, a tech-enabled scheduled bus sharing firm that provides enterprises with better mobility options for their employees, is the latest Nigerian company to receive major financing.
The company on Tuesday, 16 November 2021 announced it has raised $1.6 million(N616.1bn) in seed funding to expand beyond the shores of Nigeria.
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Shuttlers, which was formed in 2016 but launched in 2017, by Damilola Olokesusi, is meant to solve the issue of inefficient transportation networks in Lagos.
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While reacting to the new funding, Damilola said:
“Every single time that our buses are on the road, we are reducing the number of cars on the road. We are also optimizing routes and reducing the number of buses and emissions on the road.
“As we proceed, we’ll be very intentional in recording and calculating how much gas emissions we are reducing per route and daily, maybe also release reports on how we’re impacting the environment positively.”
The CEO added that investors’ interest in the company was the main reason behind the company’s first venture capital intake.
“We were not actively looking for investors; however, there is now more attention in the shared mobility industry because of companies like SWVL. Now, investors are interested in this and think local mobility plays can be valuable solutions.
“We just made the right decision for the company at this particular right time so we can get ready for the opportunity that happens after. Now we are ready to take over the African market, starting with Nigeria and West African markets in the next couple of months.”
Legit.ng understand that Shuttlers funding was led by Chicago and Africa-focused investment firm, VestedWorld.
Others are Fintech unicorn Interswitch, Africa-focused VCs Rising Tide Africa, EchoVC, Consonance Investment, Five35, Launch Africa, CcHub Syndicate, CMC 21 & Alsa, ShEquity, Sakore, and Nikky Taurus.
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Another Nigerian tech startup, TeamApt Ltd, is also in the market to raise its third round of funding at a value of more than $1 billion.
The Lagos-based company is looking at raising about $150 million from investors.
The founder and Chief Executive Officer, Tosin Eniolorunda, told Bloomberg that his team is looking at expanding to Egypt, Ghana, and Cameroon.
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Eniolorunda also revealed plans that would be used to build a digital banking product targeted at the under-served.
If successful, TeamApt is aiming to join a growing number of African startups valued at over $1 billion, including Flutterwave, OPay, and Jumia Technologies AG.
A confident Eniolorunda said:
"TeamApt now processes $3.5 billion in transaction values monthly, with 150,000 agents on its platform, and has 14 million users, we are on track to meet our targets."
Startups in Nigeria raise over N123.4billion in six month
Legit.ng had earlier reported that Nigeria was the second African country on the highest startup fundraising list, falling behind South Africa, as they both raised over N123.4 billion funds in first six months of 2021.
Flutterwave raised the highest capital among its peers in Nigeria, where the likes of Kwik Delivery, Kuda, Appzone, Termini, and Bankly operate received significant investment.
Startups owned by men still recorded the highest investment compared to women-owned businesses, but female entrepreneurs saw a surge in funding.