Ten Nigerian startups that got the biggest cheques from investors in 2023 raised a cumulative $244.34 million in a year marked by funding scarcity.
While the funding slowdown in 2023 was experienced by startups across Africa, data from Nairalytics Deals Book reveals that the majority of the deals announced in the year were also in the region of hundreds of thousands while only a few managed to secure funds in millions.
The funding slowdown for the year was attributed to several factors, including the global economic downturn, which led to investors becoming more cautious about their investments. The impact of global economic uncertainties and local factors, such as inflation and exchange rate fluctuations also affected the investment climate.
The top 10 startups that got the biggest funds in 2023 cut across different sectors of the ecosystem. From fintech to mobility, health-tech to e-commerce, these startups stood out in the year as they were able to squeeze out millions from investors amid scarcity.
Interestingly, the startup that raised the largest amount in 2023 was also among the most funded companies in the previous year 2022.
Here are the top 10 deals announced by Nigerian startups in 2023:
10. OnePipe ($4.8 million)
OnePipe secured a $4.8 million credit facility from TLG Capital in March 2023. The company said it would use the facility to provide inventory finance to small shops. Launched in August 2019, OnePipe aggregates APIs from banks and fintechs into a standardized gateway that is easy to integrate and makes partnerships seamless. The startup raised US$3.5 million in seed funding in November 2021.
According to the company’s CEO, Ope Adeoye, with the new funding, OnePipe would focus on particular embedded finance use cases, such as inventory finance. The company also planned to grow its business and establish itself as a leading supplier of financial services to Nigeria’s informal sector.
9. FairMoney ($5.39 million)
MyCredit Investments Limited, operating as FairMoney Nigeria, announced in June that it had raised N2.5 billion ($5.39M) in a Series 1 Commercial Paper Issuance. According to the fintech company, the CP program received tremendous interest from qualified institutional investors, with total demand exceeding the issue size by almost 100%.
The CP Issuance aims to support the company’s short-term liquidity needs and finance the growth of its loan book. Financial advisory services for the transaction were provided by United Capital Plc, Renaissance Capital Africa, FBNQuest Merchant Bank, and Stanbic IBTC Capital Limited.
8. Traction ($6 million)
Merchant solution platform, Traction, raised a $6 million seed round in August this year. According to the startup, the funding was to drive expansion, accelerate growth, and strengthen its team.
The startup’s $6 million seed round was led by Multiply Partners and Ventures Platform, with participation from P1 Ventures amongst other investors. The capital infusion aims to speed the startup’s growth, with Traction having seen a 7x increase in revenue and an 8x surge in transactions in 2022 while serving over 70,000 businesses in Nigeria.
While the seed funding was to be focused on scaling operations in Nigeria, Traction said it also planned over the next 18 months to explore growth outside Nigeria, either organically or through Merger and Acquisition.
7. Shekel Mobility ($9.15 million)
YC-backed Nigerian startup, Shekel Mobility, in November 2023, raised $7.2 million in a seed round comprising $3.2 million in equity and over $4 million in debt.
The company said the fund would be deployed to drive growth in its Annual recurring revenue (ARR) as it gears up for its next priced round.
Earlier in January of the same year, Shekel Mobility had announced a $1.95 million pre-seed investment led by Ventures Platform with participation from Y Combinator, Voltron Capital, and Zedcrest.
The seed round was co-led by Ventures Platform alongside MaC Venture Capital. Other investors include Y Combinator, Rebel Fund, Unpopular Ventures, Maiora Capital, PageOne Lab Inc., Phoenix Investment Club, Heirloom VC, Pioneer Ventures, and other angel investors.
6. Remedial Health ($12 million)
Remedial Health, a Nigerian startup digitizing pharmacies and bringing efficiency to the pharmaceutical value chain, raised $12 million in Series A equity-debt funding to scale operations in Nigeria. The total package comprises $8 million equity and $4 million debt.
The funding round, which was announced in August was led by fintech VC firm QED. This came as QED’s third investment in Africa after its involvement in the Moniepoint (formerly TeamApt) and FlapKap deals last year.
Ventures Platform also co-led the round, which saw the participation of existing investors like Y Combinator, Tencent, and Gaingels.
5. Nomba’s ($30 million)
In May, Nigerian fintech startup, Nomba, closed a $30 million pre-Series B round led by Base 10 Partners. Helios Digital Ventures, Shopify, Partech, and Khosla Ventures are the other investors in this round.
Founded in 2016, Nomba’s first iteration, Kudi, was a chatbot that responded to financial requests, allowing users to make transfers, buy airtime, and pay bills.
However, it soon pivoted to agency banking services. Last year, it underwent a rebrand, dropping the name, Kudi, for Nomba and adding payments and business banking services for its users.
With the new funding, the startup said it planned to add more services to businesses in Nigeria and across Africa.
4. Helium Health ($30 million)
In June, Nigerian e-health startup Helium Health raised US$30 million in Series B funding to help it expand the reach of its fintech product HeliumCredit.
Founded in 2016, Helium Health takes hospitals and clinics instantly digital with its flagship Electronic Medical Records/Hospital Management Information System (EMR/HMIS) product, the most widely used solution in West Africa.
HeliumCredit, meanwhile, was launched in 2020 to provide hospitals, clinics, pharmacies, and diagnostics centres with loans to purchase medical equipment and medication, as well as to facilitate business expansions.
Over US$3.5 million in loans have so far been disbursed to about 200 healthcare facilities through the service.
The Series B funding round was led by AXA IM Alts, with participation from Capria Ventures, Angaza Capital, Anne Wojcicki, and Flatworld Partners. Existing investors including Global Ventures, Tencent, Ohara Pharmaceuticals, LCY Group, WTI, and AAIC also participated.
3. LemFi ($33 million)
LemFi, a fintech startup that is transforming financial services for immigrants, announced a $33 million Series A round led by Left Lane Capital in August. Global Founders Capital, Zrosk, Y Combinator, and Olive Tree are the other investors in the round.
Founded by Ridwan Olalere and Rian Cochran in 2020 to solve immigrants’ challenge of lack of access to financial services, LemFi, formerly known as Lemonade set out to build a platform that empowers the next generation of immigrants.
The company said the raise would be used to fund the expansion of its product offering to the United States, Europe, the Middle East, and Asia, as well as innovate new product offerings according to the needs of its users.
2. Sabi ($38 million)
Nigerian B2B e-commerce platform providing digital commerce infrastructure to Africa’s informal economy, Sabi, raised $38 million in Series B funding at a valuation of $300 million in May.
Frankfurt-based specialist fintech investor CommerzVentures, Stockholm-based but Africa-focused growth-stage investor Norrsken22, U.S.-based growth-stage funds Fluent Ventures and Proof VC and pan-African early-stage investors CRE Venture Capital and Janngo Capital are some of the investors in the round.
The company said the new funding would enable it to develop its platform further, enhancing its features and user experience.
Additionally, Sabi planned to invest significantly in its logistics network and expand its reach to underserved regions, ensuring that businesses across Africa can access a reliable and efficient B2B e-commerce ecosystem.
1. Moove led with $76 million
In August, Nigerian-born mobility fintech company, Moove, announced it had raised $76 million in new funding to build the largest tech-driven financial services platform for mobility entrepreneurs.
This came as the largest single raise this year by any Nigerian startup.
The financing consists of $28 million in equity, $10 million in venture debt from funds and accounts, and $38 million in previously undisclosed funds raised over the past year.
BlackRock manages the venture debt, while Mubadala Investment Company led the equity round, which included new and existing investors.
