FintechStartups

Top 10 fintech companies in Nigeria

It’s a digital age and people their technological development across all sectors which includes the way we transact. Over the years, there has been a lot of fintech that have been springing up from Africa and most especially, Nigeria which boasts about 250 fintech companies. These companies have also drawn in investors to themselves because between 2014 and 2019, Nigeria’s fintech companies raised more than $600million in funding, and that is 25 percent ($122million) of the $491.6million raised by African tech startups in 2019.

Now let’s look at the 10 top players in the Nigeria fintech industries.

Top 10 fintech companies in Nigeria

1. Flutterwave is a Nigerian and America-based payments company with offices in Lagos and San Francisco.

The fintech company was founded in 2016 by Olugbenga Agboola and Iyinoluwa Aboyeji, and it works by providing payment infrastructure for merchants and payment services providers in Africa.

About 290,000 businesses according to Flutterwave use its payment platform to carry out transactions using diverse payment modes which include local and international cards, mobile wallets, bank transfers, Barter by Flutterwave with options in 150 currencies

During the pandemic lockdown last year, Flutterwave introduced Flutterwave Store for merchants and has helped over 20,000 merchants across 15 countries have online stores where they sell their products

In order to drive the US its expansion, Flutterwave appointed Silicon Valley veteran Jimmy Ku as head of US growth in August this year.

2. Abeg: If you are someone who grew up in Nigeria, you should be able to relate with the word ‘abeg’ which is a term commonly used in Nigeria to seek a favour.

The abeg app was launched in 2019 by, Muheez Akanni, Michael Okoh, and Dare Adekoya . The company CEO said the fintech was modeled after Cash App, an American mobile payment service developed by Square.

Through its peer-to-peer platform, users can request money and send money without using a bank account, all you need to send money to someone is their Abeg tag.

The company gained more popularity among Nigerians when the popular Nigeria reality show Big Brother Nigeria announced the fintech company as the lead sponsor of the Season 6 edition of the show.

3. Paystack was founded in 2015 by Shola Akinlade and Ezra Olubi. The payment platform has more than 60,000 businesses that use its API to process payments making it cover 50% of all online payments in Nigeria. The fintech startup has active operations in Nigeria and Ghana and in May this year, it launched in South Africa. In 2018, it raised $8 million in its Series A fund round and in October 2020, it was acquired by the US payment giant, Stripe for a whopping $200 million.

4. Kuda: Kuda as described by the company itself, is Nigeria’s first mobile-only bank licensed by the Central Bank. Kuda was founded in 2019 by Ogundeyi and Musty Mustapha. It started out as Kudimoney (the bank of the free) in 2016 it was later rebranded as Kuda bank.

Kuda had 300,000 users in November 2020 and was processing an average transaction worth of $500 million every month. Kuda currently has 1.4 million users that are using the platform. The fintech startup started with $1.6 million pre-seed funding and was able to raise $25 million in its Series A funding. Kuda is currently valued at $500 million after its Series fund round.

5. PiggyVest: PiggyVest is a platform that helps individuals and businesses manage their finances through saving and investing. It was founded in 2016 by Somto Ifezue as the CEO, Odunayo Eweniyi and Joshua Chibueze as co-founders. The company was originally known as Piggyvest.ng before it rebranded as PiggyVest. In 2016, Piggyvest closed $1.1M in seed funding in a round led by LeadPath Nigeria with a $1 million commitment, and $50,000 each from both Village Capital and Ventures Platform. In July 2021, it announced the acquisition of Savi.ng though the amount was not disclosed.

6. Cowrywise is a wealth management app that helps users get better at saving and investing their money, similar to how PiggyVest operates. Cowrywise was founded in 2017 by Edward Popoola and Razaq Ahmed. In January 2021, the fintech startup raised $3 million in pre-Series A funding round led by Quona capital. The CEO of Cowrywise, Razaq Ahmed, told TechCabal that the app has 220,000 registered users and aims to have 10 million registered users by 2025.

7. Carbon: Carbon (Formerly Paylater) was founded by two brothers, Chijioke Dozie and Ngozi Dozie in 2012. The company first started out as a digital lender and has over time grown to involve in many services ranging from savings to payments and investments.

According to Carbon’s 2018 report, it disbursed ₦3b ($8.3m) worth of loans in 2017. That increased by 333% to ₦13b ($36.1m) in 2018.

In 2020 Carbon hit 240m in payments processed up 89% from 2019.

8. Paga is an e-payment platform that allows its users to transfer money and make payments through their mobile devices and was founded in 2009 by Jay Alabraba and Tayo Oviosu. Six years after it was founded, the startup had hit a major milestone of 3 million users in 2015 and three years later, in 2018, the payment startup comfortably hit 11 million users.
By the time the company marked 10 years anniversary in 2019, it had completed N1.5 trillion worth of transactions.

9. Interswitch: Interswitch is an Africa-centered integrated digital payments and commerce company headquartered in Lagos. Interswitch was founded in 2002 by Mitchell Elegbe.
In November 2019, Visa invested $200 million in return for a 20% stake which valued the company at no less than $1 billion, making it one of Africa’s rare fintech unicorns.

10. eTranzact: eTranzact is Nigeria’s premier payment processing platform. It was launched in 2003 with the aim to simplify payments for individuals and businesses across Africa.
There was a significant drop in the company’s revenue in the second quarter of 2020. The company’s revenues declined by more than 10% – from N6.45 billion in Q2 2019 to N5.77 billion in Q2 2020.

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