In their 2018 Startup Funding Report, Disrupt Africa stated that startups in Nigeria got the lion’s share of funding in Africa- 58 startups including the likes of Piggybank, Farmcrowdy and Paystack raised a total of $94.4 million. There was even a greater improvement in 2019, as Nigerian startups got more funding.
The funding round refers to the rounds of funding that startups go through to raise capital. The startup company will go through several rounds of valuation that will increase as a startup proves its increasing probability of success, customer base growth, and proof of concept.
In this article, we will examine Nigerian startups with top funding rounds in 2019.
Andela, a company that looks for tech talent, recognizes them and trains them to become full stack software engineers is the first to appear on the list. Jeremy Johnson, Iyinoluwa Aboyeji, Ian Carnevale and Christina Sass launched Andela from Nigeria in 2014. It also has branches in the United States, Ghana, Kenya, Rwanda and Uganda.
This year Andela reported an investment round of $100 million in Series D–one of the largest investments of any African-based technology firm. The round was led by Generation Investment Management (a company co-founded by former US Vice President AL Gore). The Chan Zuckerberg Initiative, Spark Capital, Google Ventures and CRE Venture Capital also include other participants. The total investment of Andela so far is $180 million.
Opay, a Nigerian-based Fintech-based firm supported by the Norwegian browser company Opera, started in August 2018 in Nigeria in order to provide Nigerians with mobile payment services. It also started other products in parts of the Country, such as food service, hailing for motorcycles (oride) and hailing for tricycles (Otrike)
Opay revealed some months back that they had received $50 million from Sequoia China, IDG Capital, Source Code Capital and Opera (the parent company) to finance its ventures
Launched in 2017, Kobo360 is a freight logistics startup that links truckers and businesses to cargo delivery services via its mobile app. The website is a brain child of Ife Oyedele and Obi Ozor. Kobo360 reports to have more than 10,000 drivers and trucks registered and running on its app.
Kobo360 was able to raise $20m and another $10m in debt financing from Nigerian banks in a series A funding round led by Goldman Sach in August 2019. This is a gross investment of $30 million. Over $37.3 million from 6 rounds of funding has been received by Kobo360.
Teamapt, a financial technology company created in November 2019 by Tosin Eniolorunda, aims to develop solutions in digital and commercial banks, digital business and online payment services.
Earlier this year, Teamapt raised a $5 million A round funded entirely by Quantum capital – a company created by Jim Ovia, a prominent banker.
Farmcrowdy is Nigeria’s first digital platform for agriculture. Farmcrowdy was created in 2016 by Onyeka Akumah and aims to help farmers receive funding for their farms. They do this by offering Nigerians the chance to fund a farm. Cash collected from these sponsors is used to give farmers better seedlings and other agricultural inputs.
After raising $1 million in 2017, Farmcrowdy reveals a further $1 million in seed financing earlier this year. This brings the overall amount to $2 million – while GSMA Ecosystem Accelerator awarded them $325,000 in early 2018
Kudi is a Fintech company, founded in 2016 by Adeyinka Adewale, the current Chief Executive Officer and Pelumi Aboluwarin, the Chief Technology Officer. . Kudi provides financial services to the under-banked and non-banked in Nigeria, including cash withdrawal from agents, payment of bills for utilities and transfer of money.
Kudi recieved $120k from Y Combinator in the first round of seed in 2017. The $5 million series A investment round was generated in this year. The Partech collaborators led this funding round. The expenditure is designed to help grow the network of agents and other goods.
Max (Metro Africa Express)
Max.ng is a motorcycle hailing service that links the consumers with experienced motorcycle riders through the mobile app. Chinedu Azodoh and Adetayo Bamiduro was founded in 2015 and has raised a total of $8.1 m in 4 rounds till date.
It raised $6 million in Series A funding and $1 million in grant from its last fund raising in June 2019, making it a total of $7 million from five investors headed by Kenya’s venture firm, Novastar Ventures. Other investors include, Japanese motorcycle maker,Yamaha, Breakthrough Energy Ventures, Zrosk Investment Management and Alitheia Capital
On 1 January 2018, Fahim Salah- the Bangladeshian entrepreneur and Deji Oduntan co-founded Gokada, another Lagos on-demand ride hailing company. Gokada needs Nigerians to travel easily without any traffic problems or exorbitant prices. Gokada provides users affordable access to hail engines through its app.
Early this year, Gokada reported that it has raised $5.3m from a series A round. This round was led by rise capital, with Adventure Capital, IC Global Partners and MidWest Group (an Illinois-based company) joining in.