Africa’s fintech startups are reported to have raised $2 billion prior to now yr alone. This quantity dwarfs the $231 million that was raised within the yr 2020. Nigerian startups proceed to account for the largest share of funds raised by the continent’s fintechs in 2021.
2021 Has Highest Variety of Reported Offers
The capital raised by Africa-based fintech startups in 2021 shot to $2 billion, a determine that’s nearly ten instances the $231 million that was raised in 2020, knowledge from Crunchbase Information has proven. The determine, which can be the brand new all-time excessive, dwarfs the earlier excessive of $773 million that was recorded in 2018.
By way of the variety of offers that have been concluded, the Crunchbase knowledge additionally exhibits that 2021 has the best variety of offers recorded in a single yr — about 198. This is a rise of just about 30% from the 155 offers that have been recorded in 2020, the information suggests. The 2021 offers are additionally greater than double the 96 that have been recorded in 2017.
An extra breakdown of the information means that Nigerian funds infrastructure large Flutterwave is now one of many African continent’s most valued fintech startups. The startup’s valuation of $3 billion follows Flutterwave’s profitable funding rounds that culminated with the announcement of a $250 million capital elevate in early 2022. Nonetheless, in its report, Crunchbase Information clarifies that Flutterwave’s newest capital elevate is excluded from the $2 billion that was raised in 2021.
Major Sources for Africa’s Fintech Funding Exercise
As the information additionally exhibits, one other Nigerian startup, Opay, was in a position to high Flutterwave’s elevate after it raked in $570 million. The funding rounds give the Lagos-based cell funds fintech startup a valuation of $2 billion.
Senegal-based Wave Cell Cash is among the few non-Nigerian fintech startups that additionally reported profitable funding rounds in 2021. In response to the information, the corporate was in a position to elevate $200 million in 2021 thus giving it a valuation of $1.7 billion.
In the meantime, one other report mentioned the principle sources for Africa’s fintech funding exercise throughout the previous yr have been U.S. enterprise capital (VC) funds, giant companies, and Asian traders.
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