Fintech took the lead in the 2020 funding with more startups securing funding than any other sector In all, 99 fintech startups raised investment over the course of the year, representing 24.9 percent of the overall total.
Fintech industry in Nigeria has witnessed tremendous growth over the years. Although it’s emerging yet one can’t deny the fact that it is a fast-moving sector. A lot of foreign investors have also shown interest in the sector by investing massively.
Below, we look at the list of the top 8 fintech companies in Nigeria in no particular order:
Paystack, founded in 2015 by Ezra Olubi and Shola Akinlade, is an online payment solution that provides a quick way to integrate payments services into an online or offline transaction by way of an API, serving Nigeria and some other Africa countries. Paystack has played a critical role not just in Nigeria’s fintech sector but also in Africa and their customers include small businesses, larger corporates, fintech, and educational institutions. It made a big announcement last year October when it announced that it has been acquired by Stripe the same company that led its Series A funding at a whopping amount of $200M making it the biggest startup acquisition to date to have ever come out of Nigeria.
Olugbenga Agboola and Iyinoluwa Aboyeji co-founded Flutterwave in 2018. The headquarter is based in San Francisco with offices in Lagos. Flutterwave provides a payment infrastructure for global merchants and payment service providers
Flutterwave helps businesses build customizable payments applications through its APIs. Flutterwave says more than 290,000 businesses use its platform to carry out payments.
Paga was Founded in 2012 by Tayo Oviosu and Jay Alibaba, and is a leading payment and mobile money business and it allows people to receive international money transfers directly on their mobile devices through the use of Paga mobile money wallet. Paga currently has 17,379,708 customers and 27,623 agents.
Interswitch is an integrated payment and transaction processing company headquartered in Lagos. Interswitch was founded in 2002 by Mitchell Elegbe.
In 2019, Interswitch confirmed that it has reached unicorn status after Visa acquired a minority of the firm’s stake making the company one of the most valuable African fintech businesses with a valuation of $1 billion
Interswitch also offers a number of personal and business finance products such as its Verve payment cards and Quickteller payment app when it launched in February 2021.
5. Paylater (Carbon)
Paylater was founded by Chijioke Dozie, Ngozi Dozie, and launched in March 2016 when it first introduced instant loans without criteria. Four years later, it rebranded as Carbon. Carbon operates a loan app that gives short loans through its mobile app, making the process paperless and quick.
One Finance (OneFi) which is the company’s parent company secured a $5 million debt facility from Lendable in March 2019. A month after, the company transitioned to a fully-fledged digital financial services platform that now offers bill payments, fund transfers, and savings products, in addition to loans. The company’s co-founder and CEO, Chijioke Dozie, described the decision to transit as deliberate.
6. Kuda Bank
Kuda Bank was founded by Babs Ogundeyi and Mustapha Musty in 2016 and it started out as Kudimoney (“the bank of the free”). In June 2019, it rebranded as Kuda and received a banking license from the Central Bank of Nigeria (CBN) to launch a full-service digital bank.
The founder Babs said in 2019 Kuda is the first digital-only bank in Nigeria with a standalone license and that it is not a mobile wallet or simply a mobile app piggybacking on an existing bank.
In March 2021, the fintech startup secured a US$25 million Series A funding round led by New York-based venture capital firm Valar Ventures.
PiggyVest, formerly known as a piggybank.ng is the largest online savings and investing platform in Nigeria. They rebranded to become PiggyVest in 2019 and also began to offer investment opportunities to users besides savings.
Cowrywise was founded in the year 2017 by Edward Popoola and Razaq Ahmed. It is quite similar Piggyvest in operation and it is used for saving and investing. In January 2021, the fintech startup raised $3 million in pre-Series A funding round led by Quona capital. The app boasts of having 220,000 registered users and with the aim to have 10 million registered users by 2025.