West Africa : Start-ups break continent's fundraising record

In the first nine months of 2021, West African technology companies raised $ 1.34 billion in the form of investment, the capital market analysis platform said in a recent report. African risk Baobab Insights. These funds were mobilized through 105 financing operations.

Not surprisingly, companies operating in the financial services sector have attracted more investors to this sub-region. The latter have carried out nearly 35 fundraising operations exclusively in West African fintechs. Nigeria has concentrated the majority of investments granted to West African fintechs. As of September 21, 2021, Baobab Insights reports, nearly $ 729.

1 million of investments have been directed to Nigerian financial services companies. 68% of the total fundraising operations carried out in fintechs in the sub-region were also carried out in Nigeria. It must be said that since 2018, fintechs continue to attract the most funding compared to other sectors of activity. Note that in 2021, two West African fintechs entered the very small circle of African unicorns.

These are the Nigerian payment company Opay which, following a funding round of $ 400 million, reached a valuation of $ 2 billion, and the Senegalese payment company Wave which reached a valuation of 1, $ 7 billion, following a Series A round of $ 200 million.

This became the first unicorn in French-speaking Africa. Transport and logistics companies rank second in terms of transactions carried out.

Globally, West African start-ups continue to assert themselves on the continent. Over the first three months of the year, they generated $ 231.7 million, an amount up significantly from the $ 62.2 million achieved in the fourth quarter of 2020.