Nigerian Companies Completed Nearly Half Of All African FinTech Seed Deals In Q1 2024
In the first quarter of 2024, African FinTech seed deal activity saw a significant decline, totalling 15 deals, marking a 68 per cent decrease compared to the previous year. African FinTech seed companies raised a combined US$20m during this period, reflecting a 43 per cent reduction from Q1 2023 in total funding secured.
Zone, a regulated blockchain network that enables payments and acceptance of digital currencies, had the largest African FinTech seed deal in Q1 2024, after raising US$8.5m in their seed round, led by Flourish Ventures and TLcom Capital Partners. Zone has established an inclusive payment ecosystem by linking previously disparate financial institutions through a layer-one blockchain network. This network digitizes fiat payments and facilitates the transition to digital currencies. Leveraging blockchain technology, Zone ensures scalable, reliable, and globally compatible payment solutions for financial service providers and their clients. Already partnered with over 15 major banks and fintech firms across Africa, Zone is positioned as the continent’s inaugural regulated blockchain network for payments. Recently, with backing from Flourish Ventures, TLcom Capital, Digital Currency Group (DCG), Verod-Kepple Africa Ventures (VKAV), Alter Global, and Endeavor Catalyst, the company has successfully raised US$8.5 million in seed funding.
Nigeria was the most active African FinTech seed country in Q1 2024 with seven deals, a 47 per cent share of all transactions. This was followed by Morocco with four deals, a 27 per cent share of deals. Uganda was third with two deals, a 13 per cent share of deals.
The United Nations Development Programme (UNDP) and timbuktoo Africa Innovation Foundation have launched the inaugural timbuktoo Fintech Hub in Lagos, Nigeria, aimed at young African entrepreneurs developing fintech startups that innovate in financial services. With a vision to mobilize US$1 billion in capital, the initiative seeks to transform livelihoods and create jobs across Africa. In partnership with Nigeria’s Federal Government, UNDP will host the Hub, one of timbuktoo’s eight thematic hubs incubating and scaling promising startups. The Hub, leveraging Lagos’s fintech prominence, will drive inclusive growth through a Pan-African Fintech Startup Accelerator Programme, offering mentorship, funding, and access to networks for selected startups. Applications are open until June 21, 2024.
-Fin Tech Global
