Start-ups Investment Dips by 78.2% to $57.55 Million in One Month

Start-up Investment Dips by 78.2% to $57.55 Million in One Month

Bukola Olanrewaju June 7, 2022 TECHNOLOGY Leave a comment

Investment in Nigeria’s start-up sector has continued to lose steam, falling massively by 78.2 percent to $57.55 million in April across 10 companies from $263.68 million in March.

The Nigerian Investment Promotion Council (NIPC) disclosed this in its April 2022, investment highlights which shows that the ten companies span different sectors including fintech, maritime (freight forwarding), insurance, financial services and banking among others.

The start-ups investment status had fallen by 67.6 percent in March after recording a 376 per cent increase in February.

The companies include: Umba, a Nigerian digital banking platform, ZirooPay, a mobile platform for small businesses to accept card payments via a mobile app and EMV-certified card reader, Leatherback, a financial services provider, Afriex, a fintech firm that runs money transfer system that utilises blockchain to enable users to send funds by converting them into stablecoins, OnePort 365, a digital freight forwarding startup that makes it easier to transport cargo to, from, and within Africa, and ImaliPay, a financial service start up, that provides broad spectrum of financial services to gig workers.

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Others are: Etap, a Lagos-based insurtech startup, Simpu, a B2B SaaS platform, Syarpa, a Nigeria-based fintech company and Rísé.ng a tech startup.

A breakdown of the investment highlights show that Umba raised the highest capital during the period under review at $15 million, followed by ZirooPay, which raised $11.4 million, while Leatherback and Afriex raised $10 million apiece.

Others are, OnePort 365 ($5m), ImaliPay ($3m), Etap ($1.5m), Simpu ($1m), Syarpa ($500,000) and Rísé.ng ($150,000).

Meanwhile, two manufacturing companies, including Indorama Eleme Petrochemicals Limited (IEPL) and Global Smartfit Nigeria announced $3 million and N7 billion expansion and investment plans respectively, while Kasi Cloud Ltd, a telecoms/IT firm, commenced the construction of a $250million Data Centre in Lagos.

Also, two states, Nasarawa State and Ogun State facilitated a $700 million into their states during the period.

Nasarawa State government, according to the NIPC, is projecting a fresh $300million investment into the State with the planned maiden Nasarawa State Investment Summit billed to take place May 11 and 12, 2022, while Ogun State government signed a $400million MoU with Arise Integrated Industrial Platform, on the development of Olokola Free Trade Zone and Remo Agro-Processing Zone.