In 2023, Nigerian tech startups secured a total of $253.15 million across the top ten funding deals. Despite a decline from the previous year, these startups successfully raised funds to fuel their business growth.
The list encompasses startups spanning various sectors, including fintech, mobility, health tech, and e-commerce.
Below is a summary of the top 10 deals announced by Nigerian startups in 2023:
Moove ($76 million)
At the forefront is Moove, a fintech startup transforming vehicle financing for mobility entrepreneurs. Moove successfully raised $76 million in a new funding round, comprising $28 million in equity from both new and existing investors, led by Mubadala Investment Company, $10 million in venture debt from BlackRock-managed funds, and $38 million in previously undisclosed funds raised over the last twelve months.
Sabi ($38 million)
Lagos-based B2B e-commerce startup, Sabi, which offers digital commerce infrastructure to Africa’s informal economy, secured $38 million in Series B funding, reaching a valuation of $300 million. Notable investors in this round include German-based fintech investor CommerzVentures, Africa-focused growth-stage investor Norrsken22, U.S.-based Fluent Ventures, and Proof VC, along with pan-African early-stage investors CRE Venture Capital and Janngo Capital.
LemFi ($33 million)
LemFi, a pioneering fintech platform committed to transforming financial services for immigrants, secured $33 million in its Series A funding round. Left Lane Capital led the investment, with notable participants including Y-Combinator, Zrosk, Global Founders Capital, and Olive Tree.
Helium Health ($30 million)
Helium Health, West Africa’s premier provider of Electronic Medical Records (EMR) and Hospital Management Information (HMI) Systems, secured $30 million in a Series B funding round led by global investment leader AXA IM Alts. Other participants include Capria Ventures, Angaza Capital, U.S.-based Flatworld Partners, and existing investor Tencent. The new investment will fuel Helium Health’s plans to scale operations and extend credit within the African healthcare sector.
Nomba ($30 million)
NOMBA, previously known as Kudi, secured $30 million at a valuation exceeding $150 million in its Series B funding round. Base 10 Partners, based in San Francisco, spearheaded the investment, with participation from existing investors Partech and Khosla Ventures, as well as new investors like Helios Digital Ventures and Shopify (marking its inaugural investment in Africa). The funding aims to empower NOMBA in delivering tailored payment and operational solutions that address the unique requirements of businesses.
Remedial Health ($12 million)
In August, Nigerian health tech startup Remedial Health, focused on digitizing pharmacies and optimizing the pharmaceutical supply chain, revealed a successful $12 million Series A equity-debt funding round. Co-led by Fintech VC firm QED Investors, the funding supports Remedial Health’s mission to scale operations within Nigeria before expanding across the rest of Africa. QED Investors particularly see potential in embedded financial opportunities such as payments and lending within the pharmaceutical sector.
FrontEdge ($10 million)
FrontEdge, a Nigerian fintech based in Lagos, secured $10 million in a seed round, with over 70% of the funds coming from debt financing. The funding is geared towards fueling the expansion of African cross-border trade. Founded in 2021 by Moni Alli, a former McKinsey consultant with expertise in digital transformations for tier-one banks, FrontEdge specializes in offering working capital and software tools to SME exporters and importers, facilitating smooth cross-border and international transactions.
Shekel Mobility ($9.15 million)
In 2023, Shekel Mobility, a B2B auto dealers marketplace, successfully secured $9.15 million in a combination of equity and debt funding. The funds are earmarked to optimize operations and quadruple its current Annual Recurring Revenue (ARR). The financing structure comprises $3.2 million in equity, complemented by over $4 million in debt financing. Earlier in the year, the company also secured a $1.95 million pre-seed investment led by Ventures Platform, with participation from Y Combinator, Voltron Capital, and Zedcrest.
Terragon ($9 million)
Terragon, the Nigerian cloud analytics and marketing platform, secured $9 million in a successful Series B round. The company plans to utilize the funds to bolster the platform’s cloud-native capabilities and initiate its Pan-African expansion. Orange Ventures led the funding round, with contributions from TLcom Capital, LoftyInc, Sango Capital, VestedWorld, and Western Technology Investment (WTI).
Traction ($6 million)
Nigerian fintech startup Traction has revealed a successful $6 million seed raise in its recent funding round. The fresh capital injection will be directed towards accelerating growth within Nigeria, bolstering the team, and facilitating expansion beyond the country’s borders. The investment was spearheaded by Pan-African investor Ventures Platform and Multiply Partners, with additional participation from P1 Ventures and other investors.
