Tech startups in Nigeria have raised a total of $678 million from investors in the last four months. This amount was raised in 107 different deals announced between January and April this year, according to the latest Africa Tech and Fintech report by Renaissance Capital.
This shows a 137 per cent increase in funds raised when compared with $286 million secured in the same period last year.
The report also reveals that Nigeria accounted for 31 per cent of the total funds raised by African tech companies in the four months. A total of $2.2 billion was raised across Africa in the period under review.
Kenyan tech companies topped the fundraising in the period as they secured a total of $750 million, while Nigeria came second.
What Renaissance Capital is saying
- While noting that global venture funding is slowing, Renaissance Capital observed that the African tech scene has had a busy first quarter, but was beginning to witness a slowdown in April.
- The company said: “For the first time since December 2021, fundraising in the African tech scene slumped, as startups during April raised about $437 million (down 39% MoM, though still up 139% YoY) across 57 deals (down 44% MoM and 17% YoY).”
- “Year to date about $2.2bn has been raised across 300 plus deals. Fintech continued to hold sway, accounting for around 35% of the YtD raise. On a MoM basis, Nigeria and South Africa each saw their share of YtD funds raised decline by 3 ppts each, while Egypt was unchanged. However, Kenya gained 6 ppts on a MoM basis, buoyed by Sun King’s $260mn series D raise,” it added.