Nigeria narrowly keeps top spot for FinTech hubs in Africa during Q3 2023

Key FinTech investment stats in Africa during Q3 2023:
· African FinTech deal activity reached 51 transactions in Q3 2023, a 28% drop YoY
· African FinTech investment reached $38m in Q3, a 89% decline from the same quarter in 2022.
· Nigeria remained the most active FinTech country in Africa with 12 deals

Africa’s FinTech sector has seen a drop in both investment and deal activity during Q3 2023 although the number of deals has dropped significantly less than the global average. In Q3 2023, the number of African FinTech deals dwindled to 51, marking a significant 28% YoY decline. This being said, the global average for FinTech deals dropped 48% over the same period. In Q3 2023, African FinTech funding amounted to $38 million, representing an 89% decrease compared to the levels seen in Q3 2022.

Lupiya, a micro-loan marketplace, secured the largest FinTech deal in Africa during Q3 2023 by raising $8.3 million in its Series A funding round, led by Alitheia IDF. This funding will be used to enhance Lupiya’s technological infrastructure, expand its range of financial services, and extend its operations to serve a broader customer base. Co-Founder and CEO of Lupiya, Evelyn Chilomo Kaingu, said, “This Series A investment marks a significant milestone in our journey to continue serving our customers and the opportunity to further provide holistic financial solutions. The team at Lupiya has worked hard and is excited about the new phase of our growth. With the support of Alitheia IDF, INOKS Capital, Mastercard, and Kfw DEG, we are better poised to scale our operations and deepen our footprint not just in Zambia but also in the broader Southern and East African region.”
In terms of regional activity, Nigeria led the way with 12 deals, accounting for a 23.5% share of total deals. South Africa followed closely with 11 deals, representing a 21.6% share, while Kenya also made a strong showing with 10 deals, constituting a 19.6% share of the total deals in the African FinTech landscape.

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