Nigerian tech space has seen significant growth in venture funding. For instance, Nigerian startups have raised about $3.6bn since 2019, representing about 86 per cent of the total funding in the Western Africa region in the period.
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As of December 1, 2022, Nigerian startups had raised over $1.2 billion, according to data from Africa: The Big Deal. Though this represents a 21% year-on-year (YoY) decline compared to the over $1.5 billion raised last year, it is still a good number, considering the global economic downturn and other issues that led to the decline in venture funding in nearly every region — except Africa.
According to the African Development Bank’s (AfDB) 2021 report, Nigeria- like other “big four” countries- continues to push ahead faster than other African countries regarding start-up investment and funding, primarily because of its large economy and sizeable population. With a GDP of roughly $440bn and a population of over 200 million, Nigeria is projected to be the third-largest country by population in the world by 2050.
Another likely reason for this growth is the effort of the Nigerian government to support the ecosystem in terms of policies. For instance, in October, the Nigeria Startup Bill (NSB) ; described as the long-awaited reform that the Nigerian tech space needs , was passed into law.
In 2022, venture funding was pretty satisfying for the Nigerian tech ecosystem. The first half of the year was solid: $678 million was raised in 107 different deals between January and April, according to the Africa Tech and Fintech report by Renaissance Capital.
But the months in the second half have been quieter for the Nigerian tech ecosystem. For instance, in November, only $16m of funding was announced, the lowest monthly number since June 2021, per Africa: The Big Deal, a newsletter that focuses on startup funding in Africa above $100,000 on the continent.
In February, the Nigerian unicorn Flutterwave raised a $250 million Series D round, which brought its valuation to more than $3 billion — making it Africa’s most valuable startup. The raise is also the biggest funding announcement in Nigeria in 2022.
In March, Moove, the Nigerian mobility fintech and Uber’s largest vehicle supply partner in Europe, the Middle East, and Africa, raised $105 million in new Series A2 financing to scale across its present markets and move into new markets outside Africa.
In May, Interswitch, one of Africa’s largest fintech companies, secured a $110 million deal in a joint venture deal with LeapFrog Investments and Tana Africa Capital to increase its presence across Africa with its digital payment services.
In August, Nigerian fintech startup TeamApt raised $50M in a “pre-Series C round”. The amount represented 13.6% of the company’s total funding. Per the CB Insights State of Venture Q3’22 Report, this is the highest amount raised by an African startup in the third quarter of 2022.
In September, Vendease, a Y Combinator-backed digital platform allowing African restaurants to buy supplies, access financial services, and power their business operations, secured a Series A equity round of $20 million.