How Nigerian tech startups raised over $2 billion in 7 years, dominate Africa – Report

The latest report by Disrupt Africa has revealed that a total of 238 tech startups in Nigeria had raised $2.068 billion in the last 7 years. This, it said, is far higher than what any other African country received in the period, adding that Nigeria is the most popular investment destination on the continent.

The report, which captures funding in the tech startup ecosystem from January 2015 to August 2022, further disclosed that 107 Nigerian startups have raised funding in the last 8 months accounting for around one third of the continent’s funded startups so far this year.

According to the ‘Nigerian Startup Ecosystem Report 2022, the Nigerian startups have so far raised a total of $747.9 million this year.

What they are saying

Commenting on the report, co-founder of Disrupt Africa, Gabriella Mulligan, said: “Nigeria has long been a pioneering startup ecosystem on the African continent, leading the way in various sectors and increasingly becoming a focus for investment. It is high time we dug deeper into its growth, and this report does just that. We hope it serves as a valuable resource for both those already active in Nigeria and those looking to start doing business there soon.”

Co-founder of Disrupt Africa, Tom Jackson, also said: “It is core to our identity as a company that we offer entrepreneurs – both active and aspiring – access to pivotal information, resources and opportunities with which to take their businesses to scale. The democratisation of data, and the release of detailed industry reports free of charge, is central to that, and with that in mind we hugely appreciate the assistance of all our partners, who are doing their bit to ensure this report reaches as many people as possible.”

“As a venture capital firm firmly invested in the success of African startups, Quona is pleased to support Disrupt Africa’s endeavour to make this informative report freely available to the broader ecosystem. “Nigeria’s fintech startup scene is responsible for some of the most interesting innovations on the continent, and we’re delighted to help shine a light on its progress,” added Kofoworola Agbaje, senior investment associate at Quona Capital in Lagos.

Other key highlights of the report

• Lagos is the leading hub for Nigerian tech with 88.4% of the startups based in the city out of the 481 tracked by the report; while fintech is the leading sub-sector, with 173 (36%) of the startups active in this space
• Only 75 (15.6%) of Nigerian tech startups have at least one female founder, and just short of half have taken place in some form of accelerator or incubator programme. The 481 startups tracked employ between them just short of 20,000 people.

The report was released in partnership with Quona Capital, a venture firm focused on fintech that can expand access for underserved customers and small businesses in emerging markets; Sabi, Africa’s leading provider of commercial infrastructure for the distribution of goods and services; and MAX, which is building Africa’s largest mobility-tech platform. Other partners are Talking Drum Communications, Newtown Partners, Kwik, and LipaLater.