By Osita Chidoka
…. Nigeria is Top Destination for Venture Capital Funding in Africa ($1.37b of $4b)
In 2021, Nigerian start-ups raised $1.37 billion from foreign venture capital firms amounting to 35 percent of the $4billion raised by African start-ups. This amount is more than what Nigeria spent on external debt servicing in 2020 and more than the budget of the bottom five states in the country.
Nigeria was the top destination for VC funding, ahead of South Africa, Egypt, and Kenya. However, measured by GDP per capita (which is within the purview of the government), Nigeria has not done as well. South Africa at $14,239 is ranked in fifth place, while Egypt at $14,023 is in sixth place. Nigeria, which continues to punch below its weight class at $5,280, is ranked 17th next to Kenya in 18th place at $5,274. Yet, we led the investment race.
Nigeria’s leadership of the investments race is interesting because most of the success is in that space I called “Naija.” It is that haloed space where youth creativity is unleashed and government meddlesomeness is absent. It is that space defined by merit and value, where there is no quota system, no federal character, and no rotation formula. “Naija” is the country we don’t have. It is the place where we unlock our potential and spread it globally.
The Naija space is now globally recognised as different from the Nigerian State. Investors are betting that the Naija space would overwhelm and eventually redefine Nigeria. The only doubters are “Nigerians”, who have refused to see the ongoing revolution. The ranks of these “Nigerians” include the young and the old, educated and not, government and private sector operatives. Basically, “Naija” is a state of mind. It is the spirit of possibilities. It is the space for those who know that these little ripples will become a tsunami.
While the political class hold up the banner for “Nigeria,” for selfish reasons I can understand, the biggest disappointment is the business class led by the Banks. Nigerian Banks have eyes but can’t see. They have refused to invest or extend loans to entrepreneurs while maintaining some of the highest charges in the world. They charge between $0.05 to $0.10 to send money electronically, charge account maintenance and sundry charges. Banks earned N216 billion in E-banking revenue in 2020. If they apply some of that revenue via loans, venture and equity funding to Nigerian businesses it will make a difference. Sadly, we may require a regulatory push for something foreigners have willingly embraced.
The founders and staff of the businesses that attracted $1.37 billion (more than the budget of Akwa Ibom state, second highest after Lagos) are young Nigerians who, against all pressures, have migrated to the Naija space. They are banking that the current challenges bedevilling Nigeria are temporary and caused by a dying political order. They pray that a new leadership inspired by Naija will overcome these challenges when it takes centre stage.
The believers in Naija are right. They see what the foreign investors see. The latter are hard-nosed, unemotional, and always focused on seeking opportunities for optimal returns. Like the Naija entrepreneurs, they see our issues but can look beyond it to the glorious dawn. The investors cannot resist our English speaking and youthful population, large market, entrepreneurial mindset, vibrant democracy, historical management of diversity, rare consensus-building capacity, and potential as the leading African nation. Unfortunately, we lack political and business leaders who have the same “Naija” mindset and are willing to work hard to unlock the potential.
The 2023 general elections provide Nigerian youths with an opportunity to break those chains and unlock Naija. You must demand and install quality leadership. Liberated from the yoke of the old guard, we will see more Naija companies attracting foreign and local investments. These companies will prosper and create jobs. We will realise the prosperity that has always been our destiny.
The companies listed below are my picks among the technology companies that attracted foreign venture funding. Over 200 companies received investments in 2021, but here are my top 15 picks of companies to watch in 2021.
The companies listed are in the seed, series A and B rounds. I have also followed the big players like Flutterwave, Andela, TradeDepot, Kuda, and exits like Paystack.
Naija is an exciting country to live in. Here is my list of Naija companies to watch in 2022. Young people founded all these companies. Women found many of them. In Naija, you can spread your wings and fly as high as your capacity can propel you.
1. Fliqpay – $0.12M raised
Fliqpay is a cross-border payment infrastructure for financial institutions and global businesses.
Website: https://fliqpay.com/
Industry: Fintech
Founder(s): Ayowole Ayodele
Stage: Seed
2. Remedial Health – $0.17M raised
Remedial Health improves access to medicines by providing pharmacies and insurers direct to retail medicines from manufacturers/ registered distributors and inventory/ patient/ medication management solutions.
Website: https://remedial.health
Industry: Healthtech
Founder(s): Samuel Okwuada
Stage: Seed
3. Bumpa – $0.20M raised
Mobile-based inventory management and online store builder designed for the African market
Website: https://getbumpa.com/
Industry: Commerce
Founder(s): Kelvin Umechukwu, Adetunji Opayele
Stage: Seed
4. TalentQL – $0.42M raised
TalentQL is a talent outsourcing and incubator company.
Website: https://talentql.com/
Industry: Education
Founder(s): Adewale Yusuf, Sultan Akintunde
Stage: Seed
5. Mecho – $0.50M raised
Mecho is an on-demand auto repair and maintenance platform for individuals and businesses.
Website: https://www.mechoautotech.com/
Industry: Auto services
Founder(s): Oluwasegun Owoade, Ayoola Akinkunmi
Stage: Seed
6. Bitmama – $0.75M raised
Fiat on and off-ramp for crypto in Africa. Buy and sell Bitcoin, Ethereum, cUSD, Celo & others via its exchange and services. Female Founded.
Website: https://bitmama.io/
Industry: Fintech
Founder(s): Ruth Iselema
Stage: Seed
7. Edenlife – $1.40M raised
Eden Life is a tech-enabled service that puts your home’s chores on autopilot.
Website: https://ouredenlife.com/
Industry: Commerce
Founder(s): Nadayar Enegesi, Prosper Otemuyiwa, Silm Momoh
Stage: Seed
8. Shuttlers – $1.60M raised
Shuttlers is a platform that offers mobility solutions by providing scheduled bus-sharing services for professionals within the region. Female Founded.
Website: https://shuttlers.ng/
Industry: Mobility
Founder(s): Damilola Olokesusi, Busola Majekodunmi, Damilola Quadry
Stage: Seed
9. Bankly – $2.10M raised
Bankly is a cash digitisation savings product that allows users to top up their wallets using vouchers. Female Founded.
Website: https://bankly.ng/
Industry: Fintech
Founder(s): Tomilola Adejana, Fredrick Adams
Stage: Seed
10. Edukoya – $3.50M raised
Edukoya builds online education content and offers tutoring for students and their parents. Female Founded
Website: https://edukoya.com/
Industry: Education
Founder(s): Honey Ogundeyi
Stage: Seed
11. Okra – $4.50M raised
Okra is the Open finance infrastructure that enables developers and businesses to build personalised digital products/services.
Website: https://okra.ng/
Industry: Fintech
Founder(s): Fara Ashiru Jituboh, David Peterside
Stage: Seed
12. Appzone – $10.00M raised
AppZone is a fintech software provider building out the core infrastructure for digital financial services in Africa.
Website: https://appzonegroup.com/
Industry: Fintech
Founder(s): Emeka Emetarom, Obi Emetarom, Wale Onawunmi
Stage: Series A
13. VertoFX – $12.20M raised
VertoFX powers cross‑border payments for the world’s fastest‑growing start-ups and enterprises, specifically focusing on emerging markets.
Website: https://www.vertofx.com/
Industry: Fintech
Founder(s): Ola Oyetayo, Anthony Oduwole
Stage: Series A
14. Alerzo – $16.00M raised
Alerzo is a B2B e-commerce retail company providing a technology and services platform that transforms how informal retail stores operate.
Website: https://www.alerzo.com/
Osita Chidoka is former Minister of Aviation.