Fintech companies in Nigeria account for nearly 91% of the $417.5 million raised by tech startups in the country – Fintech Bitcoin News


According to an analysis of the US$417.5 million raised by Nigerian technology startups in the first nine months of 2021, fintech companies accounted for approximately US$379 million, accounting for 90.78% of the total.

Nigerian fintech dominates the African continent

A local report stated that Nigerian fintech companies currently account for more than 90% of the US$417.5 million raised by tech startups in the first nine months of 2021.

Although reportCompiled by the local media Punch, it pointed out that the 417.5 million U.S. dollars has been significantly higher than the 300 million U.S. dollars raised for the whole of 2020. It acknowledged that the increase in funds raised was mainly due to the financial technology group.

To illustrate this point, the report states that fintech startups raised $600 million between 2014 and 2019. To prove that the financial technology sector has grown rapidly since 2020, the report cited the Nigerian Fintech Association (FAN)’s belief that investment in the financial services ecosystem will exceed US$400 million in 2021. In addition to the expected record investment, FAN predicts that the revenue base will reach US$543 million by 2022.

governmental support

In addition to accounting for most of the funds raised by technology startups, Nigerian companies also account for most of the funds raised by fintech startups operating on the African continent.As before Report According to Bitcoin.com news, of the 277 rounds of fintech financing tracked by Disrupt Africa from 2015 to mid-2021, 108 of them went to start-ups in Nigeria.

These rounds of investment totaled US$467,901,000, meaning that Nigerian Fintech companies accounted for 53.4% ​​of the funds raised since the start of the tracking. This number is much higher than the second-ranked South Africa, whose startups raised US$216,124,800 during the same period.

At the same time, the Punch newspaper also reported that President Mohamedu Buhari’s government has since noticed the growth of the space and is now keen to push it further by creating an environment that allows the country’s youth to transform their passion into ideas. This growth.

The report added that the “Start-up Act” is a joint initiative between the Nigerian technology entrepreneurship ecosystem and the Presidential Palace and will now be submitted to the Nigerian legislature sometime before the end of 2021.

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