Nigeria’s fintech startups amassed $243 million in funding over the past year, marking the lowest among the “Big Four” African nations, according to a recent data survey.
According to the report, despite a 16% funding decline in Nigeria for 2023, noteworthy startups like Moove ($66 million) and Lemfi ($33 million) successfully raised substantial amounts.
Among the Big Four nations, Egypt took the lead in 2023, securing the highest fintech funding with $541 million, followed by South Africa ($367 million), Kenya ($301 million), and Nigeria ($243 million).
While Nigeria experienced the highest number of deals reported in one year (60 deals), South Africa had 25 deals, Kenya had 23, and Egypt recorded 17, as outlined in the report. A total of 150 African fintech startups collectively announced raising $1.55 billion in risk capital through 169 transactions.
Despite an overall 24% decline in fundraising compared to the same period in 2022, the report highlighted a notable disparity when distinguishing between equity and debt financing. Equity funding for African fintech companies dropped by 43% in 2023 compared to the previous year. In contrast, debt financing exhibited robust growth, surging by 34% to $647 million.
The research revealed the top three fintech sectors that attracted the most funding; which include the Banking and Lending sector, the Payments and Cards, and Financial Management Solutions.
