Nigeria is known for its diverse culture, tasty foods, and friendly people. In recent times, this populous black nation has begun to see a rise in tech-centered businesses. Lots of startups have come to the fore to solve problems that many Nigerians face on a daily basis. Some offer fintech services while others offer logistics for goods and so on. Is this country becoming a major tech hub in Africa?

Lagos Is At The Center Of It All

Centered in Lagos, the business headquarters of the country, several tech startups and companies have attracted venture capital firms as well as private equity firms. Some of the startups have successfully raised millions in funding. According to Tech Point Africa, Nigerian startups raised $55.37m in Q1 of 2020. Most of these funding rounds were from foreign sources.

Flutterwave, Kudabank, And Helium Health Million Dollar Seed Rounds

Companies like Flutterwave, Kudabank, and Helium Health have been successful in attracting investors. Flutterwave, a fintech company, makes it easier for merchants, pan African banks, and payment service providers to make digital payments by processing payments through different channels. 

The company recently announced that it had partnered with Paypal to allow Nigerians to send and receive payments from Paypal users using the Flutterware platform. Also, in Q1 2020, the fintech firm raise $35m and was led by Greycroft and eVentures, U.S. venture capital companies.

Kudabank is a digital bank that aims to reduce the cost of traditional banking. It also recently announced a partnership with a payment processor, Payoneer to make it easier for Nigerians to collect their payments for services directly to their Kuda Bank account.

This fintech company also secured a seed round worth $10 million in Q4, 2020. At the time, this was considered the biggest seed round in the African continent and it was led by Target Global.

Helium Health offers a healthcare-based product suite that eases the entire process of storing patient data, formalizing monetization, and enabling telemedicine for healthcare systems in West African countries like Ghana, Nigeria, and Liberia.

This startup, in Q2 2020, raised a $10 million Series A round. It was led by Africa Healthcare Master fund and Global Ventures. The funding was meant to expand to countries in North and East Africa such as Rwanda, Kenya, Morocco, and Uganda.

The Tech Boom Is Likely To Continue

Despite the struggles of the nation, Nigeria remains the center of the tech boom in Africa. Lots of tech companies are growing at an alarming rate as they provide useful products and services to residents of Nigeria and nearby countries. Some of the popular names include Piggyvest, Abeg, Get Equity, Cowrywise, Risevest. 

This rise is not surprising because technology is changing how Nigerians eat, shop, pay for services, invest, save and do every other thing. Although there is still a long way to go to ensure that these companies thrive. The government may need to create policies to encourage more tech companies to set up in the country. Otherwise, there is a huge potential for growth in this field.