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Ejike Kanife
Guest
Global startup performance analytics company, CB Insights has released its list of the 100 most promising financial technology companies in the world. While six fintech startups out of Africa made the list, none of them are from Nigeria which has for long been considered the largest and most advanced tech ecosystem on the continent.
Nigerian startups missing on the list mirror the country’s floundering fortunes in the tech startup space. In a recent African tech startup funding report for 2024 so far, the country which used to average 35 per cent of investments into the continent, could only manage 25 per cent, yielding its top spot to Kenya and Egypt.
It is also an indictment on the ability of that ecosystem to produce viable early-stage fintechs that are solving new problems. Indeed, in a recent interview by Nigerian tech leader, Iyin Aboyeji, the Flutterwave co-founder berated the new generation of fintech entrepreneurs for not seizing new opportunities and not solving new problems in the space.
“There is an opportunity now for fintechs to move beyond what we did in our time which was just bare-line payments…. Unfortunately, the fintech entrepreneurs are not doing that. They are bellyaching about a bygone era where you could make money on cheap arbitrage of FX. That day is over,” he said.
Iyin Aboyeji berated Nigerian fintechs
With new entrepreneurs not innovating, it probably isn’t really surprising that Nigeria is falling short at the moment on the global stage.
The six African startups that made the list include two from South Africa, Egypt and Kenya. In the order in which they appeared on the list, the fintech startups include:
Dopay
Founded in 2014 by Frans van Eerse (CEO) and Roel Van Eersel, Egypt-based Dopay operates as a financial technology company that provides cashless payroll solutions. The company offers a virtual banking platform and prepaid debit cards, enabling businesses to transition from physical cash to electronic payments for their employees. These services primarily cater to businesses of all sizes in frontier economies.
To date, the fintech has raised $37.15 million in total funding, including its Series A-2 round closed in July 2024. Its backers include Barclays Accelerator, ACE & Company, Force Over Mass Capital, Techstars Ventures, MasterCard Start Path, FMO, Hub71, Alder, Kube VC, Mbuyu Capital Partners, NN Group and Argentem Creek Partner.
Dopay currently has a valuation of $19.5 million according to CB Insights which is interesting seeing as it has raised nearly double that sum in funding alone. The fintech is positioned at Number 41 on the overall list.
NALA
NALA is a Kenya-based fintech that specializes in international money transfers and mobile payment solutions. Founded in 2017 by Benjamin Fernandes who also serves as its CEO, the company offers a mobile app that enables users to send money in exchange rates and is known for its transparent fee structure.
So far, NALA has raised a total of $50 million across several funding rounds, the latest being a $40 million series A round in July 2024. The startup’s investors include Nyca Partners, VentureSouq, Accel, Alex Bouaziz, Amplo, Bessemer Venture Partners and Digital Financial Service Lab.
Others are Jonas Templestein, Laura Spiekerman, Peeyush Ranjan, Vladimir Tenev, Shine Capital, Acrew Capital, Amplo, DST Global, HOF Capital, Norrsken22, Ryan King and Vlad Tenev. The startup’s valuation is undisclosed and it stands at Number 68 on the 100 list.
Benjamin Fernandes NALA CEO
Peach Payments
The first of two South African fintech startups on the list, Peach Payments specializes in providing online payment solutions. Founded in 2012 by South African immigrants, Andreas Demleitner and Rahul Jain, the startup offers a suite of services including payment processing for online transactions, subscription management, payout systems, and advanced fraud protection. The Pretoria-based company primarily serves businesses in the ecommerce industry.
In April 2023, the startup attracted what was by far its most significant venture funding, almost the only one, raising $31 million in a Series A round. The round which witnessed participation from Launch Africa, Google Umbono, Allan Gray, UW Ventures and Apis Partners, brought its total funding to $31.06 million.
Peach Payments is placed at Number 76 on the list.
Stitch
Stitch is the second South African company on the list. Founded in 2017 by two brothers, Kiaan and Priyen Pillay, and their friend, Junaid Dadan, Stitch operates as a payment service provider. The Cape Town-based company offers a payment gateway solution that enables businesses to accept various forms of payments, manage and reconcile payments across different methods and geographies, and disburse funds. Primarily, Stitch caters to the ecommerce industry, financial services, and marketplaces.
Since its founding, the startup has raised a total of $52 million in funding. The latest of them was in August of 2023 when the startup raised $25 million in a Series A-2 funding round. Its backers include several venture capital and angel investors including but not limited to 500 Global, Aaron Fu, CRE Venture Capital, Calanthia Mei, Firstminute Capital, Future Africa, Hannes Graah, Iqram Magdon-Ismail, Norrsken Foundation and Iyinoluwa Aboyeji.
Telda
Only the second Egypt-based fintech on the list, Telda is a startup that focuses on providing peer-to-peer payment solutions. Founded in 2021 by Swvl Co-founder and former CTO, Ahmed Sabbah, and Youssef Sholqamy, the company offers services such as sending, spending, and saving money in a simplified manner. It also provides a card that can be used for online and in-store purchases, as well as cash withdrawals.
Telda Founders
Telda raised its largest funding yet when it got $20 million in a seed round in October 2022. The round, which saw participation from Byld Ventures, Class 5 Global, Global Founders Capital, Sequoia Capital, Block and Yellow Card, brought its total funding to $25 million. Telda was placed at 97 on the list.
WorkPay
WorkPay, the second Kenya-based company on the list, provides human resource and payroll solutions. Founded in 2017 as TozzaPlus by Jackson Kibigo Kungu and Paul Kiman, the company offers a range of services including time tracking, payroll management, and insurance.
The fintech which would rebrand to WorkPay in 2019 also facilitates payouts to banks and mobile money in Africa. It also serves the business sector. WorkPay has raised a total of $10.1 million, including a $5 million series A round back in June 2024.
The startup’s several backers include Traction Camp, Pangea, Google for Startups Accelerator: Africa, Y Combinator, Kepple Africa Ventures, Musha Ventures, P1 Ventures, Soma Capital, Acadian Ventures, Axian Group and Fondation Botnar. Others are Kara Ventures, Launch Africa, Norrsken VC, Proparco, Saviu Ventures, Visa Africa Accelerator, Norrsken22, Plug and Play Ventures, Verod-Kepple Africa Ventures and Visa Ventures.
The 100 most promising fintech companies in the world comprise 50 per cent of early-stage startups. They are drawn from 24 countries including the US, across 6 continents. 17 of these startups are from 11 emerging and developing economies. Together, these startups have raised a combined $7.2 billion in equity funding alone, and more than $2 billion in 2024 alone.
Trending story: “Uber and Bolt make over N36 billion annual revenue from Lagos while we are treated as slaves” – drivers say
The post 6 African fintechs make global 100 most promising fintechs list, none from Nigeria first appeared on Technext.
Nigerian startups missing on the list mirror the country’s floundering fortunes in the tech startup space. In a recent African tech startup funding report for 2024 so far, the country which used to average 35 per cent of investments into the continent, could only manage 25 per cent, yielding its top spot to Kenya and Egypt.
It is also an indictment on the ability of that ecosystem to produce viable early-stage fintechs that are solving new problems. Indeed, in a recent interview by Nigerian tech leader, Iyin Aboyeji, the Flutterwave co-founder berated the new generation of fintech entrepreneurs for not seizing new opportunities and not solving new problems in the space.
“There is an opportunity now for fintechs to move beyond what we did in our time which was just bare-line payments…. Unfortunately, the fintech entrepreneurs are not doing that. They are bellyaching about a bygone era where you could make money on cheap arbitrage of FX. That day is over,” he said.
Iyin Aboyeji berated Nigerian fintechs
With new entrepreneurs not innovating, it probably isn’t really surprising that Nigeria is falling short at the moment on the global stage.
Meet the 6 African fintech startups that made the global list
The six African startups that made the list include two from South Africa, Egypt and Kenya. In the order in which they appeared on the list, the fintech startups include:
Dopay
Founded in 2014 by Frans van Eerse (CEO) and Roel Van Eersel, Egypt-based Dopay operates as a financial technology company that provides cashless payroll solutions. The company offers a virtual banking platform and prepaid debit cards, enabling businesses to transition from physical cash to electronic payments for their employees. These services primarily cater to businesses of all sizes in frontier economies.
To date, the fintech has raised $37.15 million in total funding, including its Series A-2 round closed in July 2024. Its backers include Barclays Accelerator, ACE & Company, Force Over Mass Capital, Techstars Ventures, MasterCard Start Path, FMO, Hub71, Alder, Kube VC, Mbuyu Capital Partners, NN Group and Argentem Creek Partner.
Dopay currently has a valuation of $19.5 million according to CB Insights which is interesting seeing as it has raised nearly double that sum in funding alone. The fintech is positioned at Number 41 on the overall list.
NALA
NALA is a Kenya-based fintech that specializes in international money transfers and mobile payment solutions. Founded in 2017 by Benjamin Fernandes who also serves as its CEO, the company offers a mobile app that enables users to send money in exchange rates and is known for its transparent fee structure.
So far, NALA has raised a total of $50 million across several funding rounds, the latest being a $40 million series A round in July 2024. The startup’s investors include Nyca Partners, VentureSouq, Accel, Alex Bouaziz, Amplo, Bessemer Venture Partners and Digital Financial Service Lab.
Others are Jonas Templestein, Laura Spiekerman, Peeyush Ranjan, Vladimir Tenev, Shine Capital, Acrew Capital, Amplo, DST Global, HOF Capital, Norrsken22, Ryan King and Vlad Tenev. The startup’s valuation is undisclosed and it stands at Number 68 on the 100 list.
Benjamin Fernandes NALA CEO
Peach Payments
The first of two South African fintech startups on the list, Peach Payments specializes in providing online payment solutions. Founded in 2012 by South African immigrants, Andreas Demleitner and Rahul Jain, the startup offers a suite of services including payment processing for online transactions, subscription management, payout systems, and advanced fraud protection. The Pretoria-based company primarily serves businesses in the ecommerce industry.
In April 2023, the startup attracted what was by far its most significant venture funding, almost the only one, raising $31 million in a Series A round. The round which witnessed participation from Launch Africa, Google Umbono, Allan Gray, UW Ventures and Apis Partners, brought its total funding to $31.06 million.
Peach Payments is placed at Number 76 on the list.
Stitch
Stitch is the second South African company on the list. Founded in 2017 by two brothers, Kiaan and Priyen Pillay, and their friend, Junaid Dadan, Stitch operates as a payment service provider. The Cape Town-based company offers a payment gateway solution that enables businesses to accept various forms of payments, manage and reconcile payments across different methods and geographies, and disburse funds. Primarily, Stitch caters to the ecommerce industry, financial services, and marketplaces.
Since its founding, the startup has raised a total of $52 million in funding. The latest of them was in August of 2023 when the startup raised $25 million in a Series A-2 funding round. Its backers include several venture capital and angel investors including but not limited to 500 Global, Aaron Fu, CRE Venture Capital, Calanthia Mei, Firstminute Capital, Future Africa, Hannes Graah, Iqram Magdon-Ismail, Norrsken Foundation and Iyinoluwa Aboyeji.
Telda
Only the second Egypt-based fintech on the list, Telda is a startup that focuses on providing peer-to-peer payment solutions. Founded in 2021 by Swvl Co-founder and former CTO, Ahmed Sabbah, and Youssef Sholqamy, the company offers services such as sending, spending, and saving money in a simplified manner. It also provides a card that can be used for online and in-store purchases, as well as cash withdrawals.
Telda Founders
Telda raised its largest funding yet when it got $20 million in a seed round in October 2022. The round, which saw participation from Byld Ventures, Class 5 Global, Global Founders Capital, Sequoia Capital, Block and Yellow Card, brought its total funding to $25 million. Telda was placed at 97 on the list.
WorkPay
WorkPay, the second Kenya-based company on the list, provides human resource and payroll solutions. Founded in 2017 as TozzaPlus by Jackson Kibigo Kungu and Paul Kiman, the company offers a range of services including time tracking, payroll management, and insurance.
The fintech which would rebrand to WorkPay in 2019 also facilitates payouts to banks and mobile money in Africa. It also serves the business sector. WorkPay has raised a total of $10.1 million, including a $5 million series A round back in June 2024.
The startup’s several backers include Traction Camp, Pangea, Google for Startups Accelerator: Africa, Y Combinator, Kepple Africa Ventures, Musha Ventures, P1 Ventures, Soma Capital, Acadian Ventures, Axian Group and Fondation Botnar. Others are Kara Ventures, Launch Africa, Norrsken VC, Proparco, Saviu Ventures, Visa Africa Accelerator, Norrsken22, Plug and Play Ventures, Verod-Kepple Africa Ventures and Visa Ventures.
The 100 most promising fintech companies in the world comprise 50 per cent of early-stage startups. They are drawn from 24 countries including the US, across 6 continents. 17 of these startups are from 11 emerging and developing economies. Together, these startups have raised a combined $7.2 billion in equity funding alone, and more than $2 billion in 2024 alone.
Trending story: “Uber and Bolt make over N36 billion annual revenue from Lagos while we are treated as slaves” – drivers say
The post 6 African fintechs make global 100 most promising fintechs list, none from Nigeria first appeared on Technext.