TheCable

Financial technology services contributed 73.5 percent as Nigerian startups raised $1.09 billion in 2021, contributing to the growth of the country’s economy.

Techpoint disclosed this in its latest report on the contributions and achievements of startups in Nigeria and Africa last year.

According to the report, the financial services sector raised 73.5 percent, representing $741,615,000, followed by the eCommerce sector with 13.8 percent ($139,242,000) in the year under review.

“Two fintech startups each raised 9 digits in dollars; 6 of the 13 Nigerian startups that raised 8 digits were also fintechs,” the report reads.

The report further stated that the total amount of startup deals in Africa in December 2021 was $407.86 million, with South Africa having the highest share with 52.7 percent ($215.7 million). This is followed by Nigeria’s 41.4 percent share equivalent, amounting to $168.9 million and 11 rounds seed capital.

Other countries with startup funding include Kenya ($54.15million), Egypt ($6 million), Togo ($5 million), Cote d’Ivoire(2.4 million) and Morocco ($540,000), respectively.

According to the report, a total of 23 funding deals encountered in Africa with 8 seed rounds and 5 pre-seed rounds in different sectors such as financial services raised $199.10 million with 8 deals, eCommerce ($112 million), mobility and logistics ($61 million), education ($20.10 million) with three deals each.

On the other hand, the human resource sector raised ($5.07 million), Blockchain($6 million), services ($2.95 million), agriculture ($1.10 million) and property ($0.54) with one deal each.