How Start-ups Raised $1.25bn In 2021

A Deals-book report has shown that startups operating in the Nigerian economy raised a sum of $1.25 billion deals in 2021.

The report showed that the start-ups raised this sum through seed and series fundings across 91 deals within the year–with the tech sector attracting a significant portion of the funding.

According to Nairametrics, The funds raised by these startups in 2021 was significantly higher than the previous year, indicating the impressive deal-making pace by Nigerian corporates.

The number of deals increased by 152 percent compared to 2020.

The amount raised in 2021 rose 142 percent compared to the $517 million received by startups in the previous year. Meanwhile, 11 of the 91 deals recorded in 2021 did not publicly disclose the amount they raised.

The report said Nigerian corporates recorded deals estimated at $8.88 billion in 2021, an equivalent of ₦3.65 trillion across 177 transactions.

This represents an uptick compared to 106 deals recorded in the previous year, valued at $4.3 billion in 2020.

According to the breakdown of top fund rounds secured by startups operating in Nigeria in 2021, Chipper Cash got $250 million; Andela $200 million; Flutterwave $170 million; FairMoney $42 million and Ventures Platform $40 million. Others include Daystar Power ($38 million), MAX ($31 million), Magic Fund ($30 million), Kuda Bank ($25 million), and 54gene ($25 million).

Kehinde Ogunyale

Reporting on the data-driven economy, and investigations.

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