On the African continent today, Nigeria is the shining light when it comes to start-ups and the development of innovative products to address challenges in the continent. From fintech to edtech, young innovators in the country are breaking new ground.
It is, therefore not surprising that Nigerian start-ups are attracting more foreign investors’ interests than their counterparts in other African countries. Last year alone, the start-ups were reported to have attracted over $150 billion, which was 35 percent of the total investments that came into Africa in 2021.
This year again, the funds have been rolling in. From pre-seed to Series D funding, Nigerian startups had raked in close to a billion dollars in the first quarter of this year. Here are the top ten deals that made the news in Q1 2022:
Sudo Africa ($3.7 million)
In March, Sudo Africa a fintech that provides a card-issuing API for developers and businesses in Nigeria raised $3.7 million in pre-seed funding. San Francisco-based Global Founders Capital (GFC) led the round. Participating VCs include Picus Capital, LoftyInc Capital, Rallycap Ventures, Kepple Africa, Berrywood Capital, ZedCrest, and Suya Ventures.
Several African fintech founders such as Olugbenga ‘GB’ Agboola, Ham Serunjogi, and Odun Eweniyi are investors in the company too.
Casava ($4 million)
Self-acclaimed Nigeria’s first 100% digital insurance company, Casava also raised a $4 million pre-seed round in February. This came as the largest pre-seed for an African insurtech company.
Berlin-based Target Global led the pre-seed round, with foreign VCs and angel investors such as Entrée Capital, Oliver Jung, Tom Blomfield, Ed Robinson, and Brandon Krieg participating.
DrugStoc ($4.4 million)
Nigerian e-health pharmaceutical distribution startup, DrugStoc secured $4.4 million in a Series A funding round in January. The funding was led by Africa HealthCare Master Fund, Chicago-based venture firm Vested World, and German Development Bank (DEG) amongst others. The e-health drugs procurement platform was borne out of a hospital management company IntegraHealth, founded by Chibuzo Opara and Adham Yehia in 2015.
According to Opara, the platform’s monthly revenues have grown over 1,500 per cent in the last three years, a demand brought by the quality assurance that comes with DrugStoc’s platform and they earn a commission for every sale made.
SeamlessHR ($10 million)
In the same January, SeamlessHR, a startup that builds world-class cloud solutions to help organisations manage most HR processes on one platform, raised $10 million in its Series A funding round which will see it expand to new frontiers in Southern and East Africa. This funding round was led by TLcom Capital, with significant contributions from Capria Ventures, Lateral Capital, Enza Capital, Ingressive Capital, and some private investors.
The new fund came just about a year after announcing a seed round. The fresh capital is expected to further strengthen the company’s position as Africa’s leading cloud HR and payroll platform. Speaking on this, the company’s CEO, Dr. Emmanuel Okeleji said, “We are fanatical about customer success, and this funding will enable us to invest in the continuous optimisation of customer experience across all touchpoints, adding new features and functionalities to empower our customers even more.”
Bamboo ($15 million)
In January, fintech company, Bamboo, a brokerage app that lets Africans buy and trade US stocks in real-time. The start-up raised a US$15 million Series A funding round to accelerate its growth, move into new markets and launch more products.
The US$15 million Series A round was led by Greycroft and Tiger Global with participation from Motley Fool Ventures, Saison Capital, Chrysalis Capital, and Y-Combinator’s Michael Seibel, amongst others. With the capital, Bamboo plans to further accelerate its growth, doubling down on unlocking new markets and launching more products.
Credpal ($15 million)
CredPal, one of the earliest pioneers of ‘buy now, pay later’ services in Nigeria, also closed a bridge round of $15 million in equity and debt in March this year to expand its consumer credit offerings across Africa.
According to a statement shared by the company, the investment will support its expansion into other African markets, mainly Kenya, Egypt, Ghana, and Cameroon.
Reliance Health ($40 million)
In February this year, Reliance Health, an emerging markets-focused digital healthcare provider, completed a $40 million Series B funding round led by General Atlantic, a leading global growth equity investor, with participation from Partech, Picus Capital, Tencent Exploration, AAIC (Asia Africa Investment and Consulting), P1 Ventures, Laerdal Million Lives Fund, M3, Inc., and Arvanitis Social Foundation.
Headquartered in Lagos, Nigeria and Austin, Texas, Reliance Health began operations in Nigeria in 2015 as a telemedicine-focused startup, Kangpe, founded by Femi Kuti, Opeyemi Olumekun, and Matthew Mayaki, and later expanded into a single-fee healthcare provider to better address the complex, evolving needs of patients.
ThriveAgric ($56.4 million)
ThriveAgric, a technology-driven agricultural company, also secured $56.4 million in debt funding from commercial banks and institutional investors in March this year. Additionally, the company received a $1.75million co-investment grant from West Africa Trade & Investment, which is funded by USAID.
As a result of the new investment, the company will be able to expand its 200,000+ farmer base, as well as enter new markets in Africa, including Ghana, Zambia, and Kenya.
Moove ($105 million)
In March, Nigeria-based mobility fintech startup, Moove had raised $105 million in an oversubscribed Series A2 round to scale to seven new markets across Asia, MENA, and Europe over the next six months.
Founded in 2019 by British-born Nigerians Ladi Delano and Jide Odunsi, Moove is democratising vehicle ownership in Africa by providing revenue-based vehicle financing to mobility entrepreneurs.
Flutterwave ($250 million)
Recognised as one of the most valuable startups in Nigeria, Flutterwave became Africa’s fourth unicorn last year after raising $170m in a Series C round. The company in February this year put the icing on its cake as it raised $250 million in its single-biggest funding round to date, valuing the startup at more than $3 billion, as it targets mergers and acquisitions, and a growing existing customer base.
The latest series D funding round was led by investors including Facebook Inc co-founder Eduardo Saverin’s venture capital firm B Capital Group and Boston-based hedge fund Whale Rock Capital Management. According to the Chief Executive Officer of the company, Olugbenga Agboola “the funding gives Flutterwave the much-needed support to deliver on our plans to provide the best experience for our merchants and customers around the world.”