Nigeria’s Top 5 tech firms by raise Q3 2022

Tech entrepreneurs in Nigeria are still setting the bar high for funding throughout the continent. While the amount of money raised so far this year is getting close to $1 billion, Nigerian entrepreneurs in the fintech and e-commerce sectors are yet luring more investors.

The third quarter data reveals that the fintech industry has remained the most alluring ecosystem for investors. In addition to raising the most money overall during the quarter under review, fintech companies also raised the most money individually. This is consistent with the yearly pattern seen in the earlier quarters.

The top five Nigerian startups that closed the biggest raises in Q3 2022 are listed below.

5. Kippa ($8.4 million)

Kippa, a platform for small businesses in Nigeria to handle their finances and make payments, raised $8.4 million in the third quarter of 2022, ranking 5th among the top fundraisers during the period in view. Goodwater Capital, TEN13 VC, Rocketship VC, Saison Capital (the venture arm of Credit Saison), Crestone VC (led by Inanc Balci, Co-founder and former CEO at Lazada), VentureSouq, Horizon Partners, and Vibe Capital were among the international investors who contributed to the funding for the creation of products that will aid SMEs in expanding their businesses.

Kippa, which was established in June 2021, raised pre-seed funding of $3.2 million in November 2021 with the goal of assisting merchants in digitising bookkeeping and recovering consumer debt by introducing them to easy-to-use mobile bookkeeping software.

4. Ominibiz ($15 million)

In the quarter under review, the Nigerian B2B e-commerce platform Omnibiz concluded a $15 million pre-Series A investment, consisting of $5 million in equity and $10 million in debt. Timon Capital spearheaded the fundraising, while other VC companies like Ventures Platform, Lofty Inc., Chapel Hill Denham, Chandaria Capital, and Musha Ventures also contributed.

The cash, according to Omnibiz, will be used to increase its efforts to win the loyalty of retail customers and promote their retention. Abidjan, Takoradi, Kumasi, and Accra were the cities the company mentioned during its seed round last year as starting points for its regional expansion. The business had previously completed a $3 million seed round in August 2021.

3. NowNow ($30 million)

NowNow Digital Systems, another fintech firm, raised $13 million in its seed round to increase financial inclusion throughout Africa by offering financial services to the continent’s unbanked and underbanked population. The fundraising round announced NowNow’s aspirations to develop and broaden its service offerings across Africa. It was headed by NeoVision Ventures Ltd., DLF Family Office, and Shadi Abdulhadi.

NowNow announced that it would promote financial inclusion and provide new products to improve its consumer banking, agency banking, and merchant payment solutions, all of which are already in place.

2. Vendease ($30 million)

In Q3 2022, the food procurement firm Vendease from Nigeria raised $30 million in equity and loan capital. A $10 million financing round was raised from the local finance market, and TLcom and Partech jointly led the $20 million Series A equity round. This was a unique instance of two of the largest Africa-focused funds investing together. VentureSouq, Hustle Fund, Hack VC, GFR Fund, Kube VC, Magic Fund, and Kairos Angels, who had previously taken part in the equity round, were also present.

The company stated that the investment would be put to use to assist its continental expansion as well as to consolidate its operations and growth in Ghana and Nigeria. In order to promote growth along the entire food value chain, it would also be used to produce new products and services.

1. TeamApt ($50 million)

With its $50 million in pre-series C funding, TeamApt, a Nigerian fintech company that offers banking and business payment systems, won the third quarter’s fundraising competition. The fresh investment was led by QED Investors, a U.S. venture capital firm with a fintech concentration. Novastar Ventures (co-lead), Lightrock, and BII also took part in the round.

The corporation claimed that by digitising the African economy, the fund will enable it to enlarge its lending services, enter new markets, and distribute financial happiness. Through its products Moniepoint and Monnify, TeamApt processes a $100 billion annually run-rate of transaction value on its platform which is now one of Nigeria’s largest business payments and banking platforms.