Once more, Nigerian startups, particularly those involved in the tech sector, will have much to be grateful for in 2022 as both domestic and international investors back their ventures.
According to data, of the $3.6 billion in venture capital raised by African businesses in 2022, 27.4% ($967.2 million) was invested in Nigerian startups.
Flutterwave, Interswitch, Moore, TeamApt, and Ventures Platform are the Nigerian startups that received the largest fundraising tickets.
Nigeria’s top startup deals
Flutterwave $250m (N111.8bn)
After raising more over $250 million in 2022, Flutterwave, a finance unicorn from Nigeria, took the top spot.
This occurred in February 2022 following the $250 million Series D round’s closure. Before Kenyan startup Sun King closed a $260 million Series D financing, it was briefly the highest Series D round by an African software business.
But with a $3 billion value, it propelled Flutterwave to the top spot as the most valuable startup in Africa.
A US private equity firm, B Capital Group, oversaw the financing of Flutterwave. Other participants include, among others, US hedge fund Altak Park Capital, US venture capitalists Whake Rock Capital, and Lux Capital.
Interswitch $110m (N49.23bn)
Helios, Visa, and other Interswitch investors made the decision in May to sell Leapfrog Investments and Tana Africa Capital a combined $110 million, or 15% of their overall stake in the company.
Jim Roth and Andrew Kuper established the South African-based private equity company Leapfrog Investments.
The company claims that the selldown is not a loss of trust by the private equity group Helios, but rather an attempt to broaden the investor base.
Moove’s equity $105m (N47bn)
The first mobility fintech in the world, Moove, raised $105 million in an oversubscribed Series A2 round of stock and debt.
AfricInvest, MUFG Innovation Partners, Latitude, and Kreos Capital were among the new investors who joined current investors Speedinvest, Left Lane Capital, and The Latest Ventures in leading the investment round.
While Left Lane Capital is a venture capital business based in the US, Speedinvest is an Austrian company with offices in Vienna.
TeamApt’s $50m (N22.3bn)
The more than $50 million pre-Series C financing for TeamApt in March was led by QED Investors, a venture capital firm with a focus on fintech in the United States. Along with Novastar Ventures (co-lead), Lightrock, and Bil, previous investors from TeamApt’s Series B last year also contributed to this round.
Ventures Platform’s $40m (N17.9bn)
In December, Venture Platform announced that its early-stage and international fund had reached its $46 million final closure, exceeding its initial $40 million goal.
New global participants in the oversubscribed fund include corporates, DFIs, commercial banks, high-net-worth individuals, and global institutional investors (HNIs).
These include Standard Bank (South Africa), International Finance Corporation (IFC), British International Investment, A to Z Impac (US), Proparco with FISEA (France), and others. AfricaGrow is a fund of funds supported by BMZ (German Ministry for Economic Cooperation and Development, DEG and Allianz, managed by Allianz Global Investors).
Performance of Nigerian startups in comparison to the rest of Africa
As was already established, according to BD, Nigerian startups received 27.4% ($967.2 million) of all the capital given to businesses in Africa.
South Africa, Kenya, and Egypt are next, with 26.5% ($936.3 million), 15.3% ($541 million), and 8.9% ($315 million), respectively.
With 78.1% of the overall funding, the top four fundraising destinations maintained their position atop the list.
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