Nigeria retains top spot in Africa for early stage FinTech investment in 2023

Key African FinTech seed investment stats in 2023

• African FinTech seed deals totalled at 116 transactions in 2023, a 49% drop from 2022

• African FinTech seed companies raised a combined $76m in 2023, a 73% reduction from 2022

• Nigeria was the most active African FinTech seed country with 49 deals In 2023, African

FinTech seed deals experienced a significant decline, totalling just 116 deals, marking a stark 49% drop compared to the previous year. The combined funds raised by African FinTech seed companies also suffered in 2023 and amounted to $76m, reflecting a substantial 73% reduction from the funding levels seen in 2022.

FrontEdge, which provides financing, payments and insurance for the logistics sector, had the largest African FinTech seed deal in 2023, after raising $10m in their seed round. The funding was provided by TLG Capital. FrontEdge intends to utilise the $10m to expand its reach and deepen its impact across the African continent, according to a report from Disrupt Africa. By doing so, the company aims to facilitate the growth of African cross-border trade, providing SME exporters and importers with the necessary capital and expertise to achieve scale. FrontEdge founder Moni Alli commented on the company’s mission, stating, “SMEs are the cornerstone of our economies and the export market presents a significant opportunity for small and medium sized African businesses. However, from Lagos to Mombasa, business owners are constrained by an inability to finance their exports as well as a lack of support at every stage of the export process. FrontEdge was founded to address both challenges through a seamless technology platform tailored to cross-border traders.”

Nigeria was the most active African FinTech seed country with 49 deals, a 42% share of total deals. Kenya was the second most active with 15 deals, a 13% share of total deals. South Africa was the third most active with 14 deals, a 12% share of total deals.

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