The Nigerian startup space has witnessed tremendous growth in the last decade, transitioning from relative obscurity to becoming a force to reckon with, not just in Africa but across the globe.
The Nigerian government has not failed to notice this growth trajectory and its impact on the Nigerian economy. In 2022, the National Assembly passed the Nigerian Startup Act, which was eventually signed into law by former President Buhari.
Beyond the passage of the Startup Act, the federal government is also providing the necessary support, despite the harsh business environment, to allow these startups to scale.
Despite a series of economic challenges in Nigeria since 2014, including two recessions, the COVID-19 pandemic, issues in the foreign exchange market, and others, the tech ecosystem has weathered these storms. In the process, it has birthed up to four (4) unicorns—the latest being Moniepoint. However, some have seen their valuations decline in recent years.
Nigerian startups received the largest share of the international funding pie for Africa in the years prior to 2023. Of the $2.9 billion raised by startups in Africa in 2023, Nigerian startups secured $410 million, with Kenya taking the biggest slice of the pie, followed by Egypt and South Africa.
However, in the past five years, from 2019 to 2023, Nigerian startups captured the largest share of funding raised by African startups, accounting for 29% of the total $15 billion in investments.
The startup ecosystem in Nigeria is dominated by e-commerce, fintech, and edtech startups, leveraging the country’s burgeoning youth population and the large number of unbanked individuals in Nigeria.
10. Konga and Paystack
Retail giant Konga and the fintech startup Paystack rank together as the ninth most valuable startups in Nigeria, with a market valuation of $200 million each. Paystack was sold to Stripe in 2020 for a whopping $200 million, which remains its current valuation.
Konga was founded in 2012 as a Nigerian e-commerce firm that provides direct online retail and also serves as a third-party marketplace. Amid a dire situation in 2017 and severe cost-cutting measures, including significant downsizing, the company was sold to Zinox Technologies in 2018 for an undisclosed amount.
08. Paga
This mobile payment platform was established by Tayo Oviosu in 2009 but eventually launched to the public in 2011. It offers a range of services, including money transfers, bill payments, retail payments, data and airtime top-ups, as well as banking services.
It is reportedly valued at $300 million, with investors including Global Innovation Fund, Goodwell Investments, Unreasonable Capital, and others. Since its founding, it has raised up to $35 million in funding.
07. Jumia
Africa’s first startup to achieve unicorn status and list on the New York Stock Exchange now ranks seventh among the most valuable startups in Nigeria. The e-commerce giant has, in recent times, seen its valuation nosedive to $450 million as it struggles to achieve profitability and revenue growth amidst operational challenges.
So far, the startup has raised up to $750 million in funding since its establishment in 2012.
06. Kuda
Dubbed “Africa’s bank for the free” for its near-zero fees and charges, Kuda is the sixth most valuable startup in Nigeria, with a market valuation of $500 million. Founded in 2018, the company has raised around $90 million in funding from investors, with the latest funding round occurring in August 2021, where it raised $55 million led by Valar Ventures, Target Global, and other angel investors.
05. Moove
This fintech startup offers financial services specifically to drivers, focusing on helping them acquire vehicles through a revenue-based financing model. The startup is barely four years old, having been established in 2020.
Since its inception, Moove has raised a total of $447.2 million in funding from up to 33 investors, including SpeedInvest, Left Lane Capital, Tekton Ventures, Class 5 Global, and others. These funding rounds include debt financing and private equity.
Moove operates in Nigeria, South Africa, and several other African countries. Its latest funding round occurred in February 2024, when it raised $10 million in debt financing from India’s Stride Ventures.
Following its latest funding raise, Moove’s valuation rose to $750 million, making it one of the most valuable startups in Nigeria.
04. Moniepoint (formerly TeamApt)
The latest entrant into the unicorn rank boasts a market valuation of over $1 billion.
Its recent status came after raising $110 million in its latest Series C funding round, led by Development Partners International’s African Development Partners III (ADP III) fund. Other investors included Google’s Africa Investment Fund, Verod Capital, and Lightrock.
03. Andela
The second of Iyin Aboyeji’s unicorns, Andela is the third most valuable startup in Nigeria, with a market valuation of $1.5 billion.
Andela helps companies build remote teams quickly and cost-effectively and rose to prominence during the pandemic when the demand for remote workers surged.
Since its establishment in 2014, the company has raised up to $340 million in funding, with the latest being a $200 million Series E funding round in 2021 led by SoftBank Vision Fund 2, Whale Rock, Generation Investment Management, the Chan Zuckerberg Initiative, and Spark Capital.
02. Opay
The second most valuable startup in Nigeria transitioned from a mobility firm to a fintech and has recorded tremendous success since the shift.
The company is valued at a staggering $2.7 billion and has so far received $540 million in funding across several rounds.
Opay facilitates money transfers and various types of payments. Its prominence peaked during the cash scarcity in Nigeria in early 2023, when demand for online payments soared, and traditional banks’ digital banking infrastructure became overwhelmed.
01. Flutterwave
The most valuable startup in Nigeria is a fintech company that helps businesses and banks process seamless and secure payments to clients and customers worldwide.
The company is currently valued at over $3 billion and has floated plans to list on the New York Stock Exchange (NYSE).
Its backers include Y Combinator Continuity Fund, Greycroft, Greenvisor Capital, Omidyar Network, and Glynn Capital, which collectively have invested over $445 million in the startup.
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