Nigeria’s fintech sector has raised a total of $976.146 million in startups within a year. This information was provided in the Disrupt Africa 2022 African Tech Startups Funding Report.
With this figure accounting for 29.3 percent of Africa’s total investment in the ecosystem, Nigeria now takes the top position in fintech across the continent. These statistics were provided in the 2022 African Tech Startups Funding Report, released by Disrupt Africa.
The report indicates that startup companies raised more money than ever before despite a general decline in investment activity, particularly in high-risk asset classes like venture capital.
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2022 Africa Tech Investments
In 2022, investment in Africa’s tech startup ecosystem surpassed $3 billion for the first time, with a total of $3.3 billion invested. Little wonder fintech is still the industry receiving the most funding, with Nigeria still enjoying the focus of many investors.
For the second year in a row, Nigeria continued to lead Africa in terms of startup funding and held on to the title of the best-funded nation. According to the research, 180 startups in the nation (28.4% of all funded initiatives in Africa) raised a combined $976,146,000 (29.3% of the continent’s total), placing it far ahead of all other nations in both categories.
With 180 companies collecting a total of $976 million, Nigeria was the best-funded nation in Africa for the second year in a row, well outpacing all other nations on both counts. Nigerian startups account for 28.4% of all funded enterprises in Africa, while the nation received 29.3% of all investments made on the continent.
Regarding funding, Nigeria, Egypt, South Africa, and Kenya continue to be the “big four” African nations, though they collectively received less money in 2022 than they did in 2021. This is due to investments being made in startups from more African nations. South Africa, which was once the darling of African startup finance, saw a year-over-year fall in both the number of firms receiving investment and the total amount of funding raised, according to academics. More than ever in 2022, entrepreneurs in 27 African nations received financial support.
The report stated that “…despite a record breaking year of funding for both Ghana and Tunisia, Africa’s ‘big four’ remains firmly entrenched, with no sign yet that it could in any real way turn into a ‘five’ or ‘six’.”
However, the report also showed that there are indications that financing is beginning to spread somewhat more equitably, according to the analysis.
80.1% of enterprises that were sponsored in 2021 originated in Egypt, Kenya, Nigeria, or South Africa. That dropped to 75.8 percent in 2022. Additionally, the share of total money raised through these markets fell from 92.1% of the annual total in 2021 to 80.8 % in 2022.
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The publication also explained the market growth only began in recent times.
According to the report, “This is a significant development considering until 2022 the share secured by the major markets had only been rising.”
With about $1.5 billion in capital received in 2022—or 43.4% of all startup investments made across the continent—the fintech industry was once again the most alluring to investors. A total of 205 fintech startups raised money, with Nigerian firms accounting for over 40% of startups and 46% of fintech funding. With a $250 million round, the African unicorn Flutterwave led the group, followed by Moove ($181.8 million) and Yellow Card ($40 million).
