{"id":13014,"date":"2024-01-02T08:56:42","date_gmt":"2024-01-02T08:56:42","guid":{"rendered":"https:\/\/abujacityjournal.com\/livenews\/?p=13014"},"modified":"2024-01-02T08:56:42","modified_gmt":"2024-01-02T08:56:42","slug":"nigerian-tech-startups-secure-over-415-million-in-debt-funding-in-the-last-decade-report","status":"publish","type":"post","link":"https:\/\/abujacityjournal.com\/livenews\/2024\/01\/02\/nigerian-tech-startups-secure-over-415-million-in-debt-funding-in-the-last-decade-report\/","title":{"rendered":"Nigerian Tech Startups Secure Over $415 Million in Debt Funding in the Last Decade – Report"},"content":{"rendered":"
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In the past 10 years, Nigerian tech startups have accessed more than $415 million in debt, according to a report by Briter Bridges, a research and market intelligence firm focused on emerging economies. Titled “Debt Financing in Africa\u2019s Innovative Ecosystem,” the report highlighted that African startups collectively borrowed a total of $2.1 billion between 2014 and 2023. Kenya led the continent by securing over $800 million through 60 deals, while Nigerian startups ranked second with $415 million borrowed in more than 40 deals.<\/p>\n

The report emphasized the significant role debt financing has played in Africa’s startup ecosystem, attributing the surge to a decline in equity funding. Over the last five years, debt, as a share of total funding to ventures in Africa, grew from 4% to 26%, largely due to a substantial decrease in equity funding from $2.6 billion in 2022 to $1.4 billion in 2023.<\/p>\n

The Big Four countries – Nigeria, Kenya, Egypt, and South Africa – accounted for over 75% of the total debt funding volume by African startups. Most debt funding flowed to companies with collateral, with nearly 75% directed to asset-heavy businesses in cleantech, mobility, agriculture, and logistics. Cleantech received nearly 50% of disclosed debt funding, primarily directed at solar home kits and pay-as-you-go products. Fintech and mobility sectors also attracted substantial debt financing, indicating a shift in funding dynamics within the African startup landscape.<\/p>\n

Notable debt deals during this period included a $200 million raise by Kenyan startup Mkopa, $130 million secured by another Kenyan startup, Sunking, and $50 million acquired by Nigerian startup Lumos. The report signifies the changing financing landscape for African startups and the increasing importance of debt instruments in supporting innovative ventures.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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In the past 10 years, Nigerian tech startups have accessed more than $415 million in debt, according to a report by Briter Bridges, a research and market intelligence firm focused on emerging economies. Titled “Debt Financing in Africa\u2019s Innovative Ecosystem,” the report highlighted that African startups collectively borrowed a total of $2.1 billion between 2014 […]<\/p>\n","protected":false},"author":12,"featured_media":13015,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180],"tags":[],"class_list":["post-13014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/13014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=13014"}],"version-history":[{"count":2,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/13014\/revisions"}],"predecessor-version":[{"id":13025,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/13014\/revisions\/13025"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/13015"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=13014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=13014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=13014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}