Monday, December 23, 2024
Custom Text
Home BUSINESS Startups in Nigeria raise outlay with $248m

Startups in Nigeria raise outlay with $248m

-

Startups raise 103% more funds in Q3 than in Q2 2021

By Jeph Ajobaju, Chief Copy Editor

Startups in Nigeria raised an estimated $248.6 million (N102.77 billion) in the third quarter of 2021 (Q3 20201), a 103 per cent shot above $122.76 million in Q2 2021, with fintechs receiving almost half the total.

Startups ramped up fundraising, closing deals at different stages of funding rounds, cutting deals across 12 major sectors with financial services, and attracting the most interest in amount and number of deals.

- Advertisement -

Nairametrics tracks the data from fundraising in press releases published by startups as well as records of all corporate deals involving businesses, including startups.

Breakdown

There were 28 tech deals in Q3 2021, three times higher than 9 deals in Q2 2021. A total 49 seed and series fund deals were recorded between January and September

Fintechs raised $113.7 million in Q3 2021, Venture capitalists ($40.1 million), and healthtechs ($27.3 million).

__________________________________________________________________

- Advertisement -

Related articles:

Five investors may power Nigerian startups beyond $400m this year

African startups raise $1.19b. Fintech attracts most fund

Digital economy bill in the works for startups

__________________________________________________________________

Top deals by value in Q3 2021:

Agricorp – $17.5 million

Agricorp, a producing, processing, and exporting firm, raised $17.5 million in ‘Series A’ funding in September to increase capacity to 7000 metric tonnes per year.

54gene – $25 million

54gene, a healthtech advancing African genomics research for improved global health outcomes, secured $25 million in a Series B round in September.

The round, led by Cathay AfricInvest Innovation Fund, included Adjuvant Capital, KdT Ventures, Plexo Capital, Endeavor Capital, Ingressive Capital, and others.

It comes a year after 54gene raised $15 million in Series A and two years after closing a $4.5 million seed round. This brings its total investment to more than $45 million since its founding in 2019.

MAGIC Fund – $30 million

MAGIC Fund, the global collective of founders, announced it raised $30 million in July to continue to back its early stage startups.

One-third of the sum was contributed by its founder, GPs.

LPs include Y Combinator’s Michael Seibel, Tim Draper, Ace & Company, Rappi’s Andres Bilbao, Octopus Ventures’ Kirsten Connell, Paystack’s Shola Akinlade, Flutterwave’s Gbenga Agboola, and Katie Lewis.

MAGIC Fund backs other founders, solving daunting challenges. Since its establishment in 2017, it has invested in about 70 companies, including Nigerian fintech startup, Mono.

FairMoney – $42 million

FairMoney received $42 million in Series B round in July. It was led by Tiger Global, investment firm based in the US. Existing investors that participated include DST Partners, Flourish Ventures, Newfund, and Speedinvest.

The investment comes after FairMoney raised €10 million Series A round two years ago and €1.2 million seed in 2018.

Moove – $63.2 million

Mobility startup Moove raised $63.2 million series A debt and equity round in August, 25.4 per cent of total raised. It comprised $23.2 million equity and $40 million debt element.

The equity round was led by Speedinvest and Left Lane Capital with participation from DCM, Clocktower Technology Ventures, thelatest.ventures, LocalGlobe, Tekton, FJ Labs, Palm Drive Capital, Roka Works, KAAF Investments, Class 5 Global, Victoria van Lennep, and Kepple Africa Ventures.

An existing lender, Emso Asset Management, and the IFC contributed $40 million debt element to help it grow its vehicle financing book.

Others

  • Yellow Card – $15 million
  • Alerzo – $10.5 million
  • LoftyInc Capital – $10 million
  • Smile Identity – $7 million
  • Releaf – $4.2 million

Nairametrics says this report excludes deals reported as “undisclosed”. Some of them are TeamApt, Tx Africa, Savi.ng, Gamr, and Sabi.

Must Read