Ten Nigerian startups that bought the most important cheques from buyers in 2023 raised a cumulative $244.34 million in a yr marked by funding shortage.
Whereas the funding slowdown in 2023 was skilled by startups throughout Africa, information from Nairalytics Offers E-book reveals that almost all of the offers introduced within the yr have been additionally within the area of a whole bunch of 1000’s whereas just a few managed to safe funds in hundreds of thousands.
The funding slowdown for the yr was attributed to a number of elements, together with the worldwide financial downturn, which led to buyers turning into extra cautious about their investments. The influence of world financial uncertainties and native elements, resembling inflation and change charge fluctuations additionally affected the funding local weather.
The highest 10 startups that bought the most important funds in 2023 reduce throughout completely different sectors of the ecosystem. From fintech to mobility, health-tech to e-commerce, these startups stood out within the yr as they have been in a position to squeeze out hundreds of thousands from buyers amid shortage.
Apparently, the startup that raised the most important quantity in 2023 was additionally among the many most funded firms within the earlier yr 2022.
Listed below are the highest 10 offers introduced by Nigerian startups in 2023:
10. OnePipe ($4.8 million)
OnePipe secured a $4.8 million credit score facility from TLG Capital in March 2023. The corporate mentioned it could use the power to supply stock finance to small outlets. Launched in August 2019, OnePipe aggregates APIs from banks and fintechs right into a standardized gateway that’s simple to combine and makes partnerships seamless. The startup raised US$3.5 million in seed funding in November 2021.
Based on the corporate’s CEO, Ope Adeoye, with the brand new funding, OnePipe would give attention to specific embedded finance use instances, resembling stock finance. The corporate additionally deliberate to develop its enterprise and set up itself as a number one provider of monetary companies to Nigeria’s casual sector.
9. FairMoney ($5.39 million)
MyCredit Investments Restricted, working as FairMoney Nigeria, introduced in June that it had raised N2.5 billion ($5.39M) in a Collection 1 Business Paper Issuance. Based on the fintech firm, the CP program acquired great curiosity from certified institutional buyers, with complete demand exceeding the problem measurement by nearly 100%.
The CP Issuance goals to assist the corporate’s short-term liquidity wants and finance the expansion of its mortgage e-book. Monetary advisory companies for the transaction have been offered by United Capital Plc, Renaissance Capital Africa, FBNQuest Service provider Financial institution, and Stanbic IBTC Capital Restricted.
8. Traction ($6 million)
Service provider resolution platform, Traction, raised a $6 million seed spherical in August this yr. Based on the startup, the funding was to drive enlargement, speed up development, and strengthen its staff.
The startup’s $6 million seed spherical was led by Multiply Companions and Ventures Platform, with participation from P1 Ventures amongst different buyers. The capital infusion goals to hurry the startup’s development, with Traction having seen a 7x improve in income and an 8x surge in transactions in 2022 whereas serving over 70,000 companies in Nigeria.
Whereas the seed funding was to be centered on scaling operations in Nigeria, Traction mentioned it additionally deliberate over the subsequent 18 months to discover development exterior Nigeria, both organically or by Merger and Acquisition.
7. Shekel Mobility ($9.15 million)
YC-backed Nigerian startup, Shekel Mobility, in November 2023, raised $7.2 million in a seed spherical comprising $3.2 million in fairness and over $4 million in debt.
The corporate mentioned the fund can be deployed to drive development in its Annual recurring income (ARR) because it gears up for its subsequent priced spherical.
Earlier in January of the identical yr, Shekel Mobility had introduced a $1.95 million pre-seed funding led by Ventures Platform with participation from Y Combinator, Voltron Capital, and Zedcrest.
The seed spherical was co-led by Ventures Platform alongside MaC Enterprise Capital. Different buyers embrace Y Combinator, Insurgent Fund, Unpopular Ventures, Maiora Capital, PageOne Lab Inc., Phoenix Funding Membership, Heirloom VC, Pioneer Ventures, and different angel buyers.
6. Remedial Well being ($12 million)
Remedial Well being, a Nigerian startup digitizing pharmacies and bringing effectivity to the pharmaceutical worth chain, raised $12 million in Collection A equity-debt funding to scale operations in Nigeria. The full package deal contains $8 million fairness and $4 million debt.
The funding spherical, which was introduced in August was led by fintech VC agency QED. This got here as QED’s third funding in Africa after its involvement within the Moniepoint (previously TeamApt) and FlapKap offers final yr.
Ventures Platform additionally co-led the spherical, which noticed the participation of current buyers like Y Combinator, Tencent, and Gaingels.
5. Nomba’s ($30 million)
In Might, Nigerian fintech startup, Nomba, closed a $30 million pre-Collection B spherical led by Base 10 Companions. Helios Digital Ventures, Shopify, Partech, and Khosla Ventures are the opposite buyers on this spherical.
Based in 2016, Nomba’s first iteration, Kudi, was a chatbot that responded to monetary requests, permitting customers to make transfers, purchase airtime, and pay payments.
Nevertheless, it quickly pivoted to company banking companies. Final yr, it underwent a rebrand, dropping the identify, Kudi, for Nomba and including funds and enterprise banking companies for its customers.
With the brand new funding, the startup mentioned it deliberate so as to add extra companies to companies in Nigeria and throughout Africa.
4. Helium Well being ($30 million)
In June, Nigerian e-health startup Helium Well being raised US$30 million in Collection B funding to assist it broaden the attain of its fintech product HeliumCredit.
Based in 2016, Helium Well being takes hospitals and clinics immediately digital with its flagship Digital Medical Data/Hospital Administration Info System (EMR/HMIS) product, probably the most extensively used resolution in West Africa.
HeliumCredit, in the meantime, was launched in 2020 to supply hospitals, clinics, pharmacies, and diagnostics centres with loans to buy medical tools and drugs, in addition to to facilitate enterprise expansions.
Over US$3.5 million in loans have to this point been disbursed to about 200 healthcare services by the service.
The Collection B funding spherical was led by AXA IM Alts, with participation from Capria Ventures, Angaza Capital, Anne Wojcicki, and Flatworld Companions. Current buyers together with International Ventures, Tencent, Ohara Prescription drugs, LCY Group, WTI, and AAIC additionally participated.
3. LemFi ($33 million)
LemFi, a fintech startup that’s reworking monetary companies for immigrants, introduced a $33 million Collection A spherical led by Left Lane Capital in August. International Founders Capital, Zrosk, Y Combinator, and Olive Tree are the opposite buyers within the spherical.
Based by Ridwan Olalere and Rian Cochran in 2020 to resolve immigrants’ problem of lack of entry to monetary companies, LemFi, previously referred to as Lemonade got down to construct a platform that empowers the subsequent technology of immigrants.
The corporate mentioned the elevate can be used to fund the enlargement of its product providing to the USA, Europe, the Center East, and Asia, in addition to innovate new product choices in response to the wants of its customers.
2. Sabi ($38 million)
Nigerian B2B e-commerce platform offering digital commerce infrastructure to Africa’s casual economic system, Sabi, raised $38 million in Collection B funding at a valuation of $300 million in Might.
Frankfurt-based specialist fintech investor CommerzVentures, Stockholm-based however Africa-focused growth-stage investor Norrsken22, U.S.-based growth-stage funds Fluent Ventures and Proof VC and pan-African early-stage buyers CRE Enterprise Capital and Janngo Capital are a number of the buyers within the spherical.
The corporate mentioned the brand new funding would allow it to develop its platform additional, enhancing its options and consumer expertise.
Moreover, Sabi deliberate to speculate considerably in its logistics community and broaden its attain to underserved areas, guaranteeing that companies throughout Africa can entry a dependable and environment friendly B2B e-commerce ecosystem.
1. Moove led with $76 million
In August, Nigerian-born mobility fintech firm, Moove, introduced it had raised $76 million in new funding to construct the most important tech-driven monetary companies platform for mobility entrepreneurs.
This got here as the most important single elevate this yr by any Nigerian startup.
The financing consists of $28 million in fairness, $10 million in enterprise debt from funds and accounts, and $38 million in beforehand undisclosed funds raised over the previous yr.
BlackRock manages the enterprise debt, whereas Mubadala Funding Firm led the fairness spherical, which included new and current buyers.
