Despite it been a tough 2020 for businesses, the tech start-up space in Nigeria has shown great strength as technology and digital firms became increasingly instrumental in the new normal.
Nigeria’s digital start-ups were in a good position to respond to the pandemic as most work processes shifted online.
Many tech start-ups launched new COVID-related offerings especially in the education and health sectors (ed-tech and e-health).
From AI to famous applications, it’s clear that tech companies are still dominating the market when it comes to serving new products.
According to a recent venture capital data compiled by Startuplist Africa, Nigeria has the highest start-up investment deals in the first nine months of 2020 on the continent, with over $126 million investment deals.
Tech and digital businesses accounted for over 90 percent of the total deals for the period.
Yearly, we are seeing more innovative tech start-ups providing solutions to societal problems.
On this note, Start-Up Digest takes a look at some of these tech start-ups making serious waves in the tech space amid the pandemic.
uLesson
Through uLesson, many students were still able to learn during the pandemic as schools shut down operations, and students were forced to stay at home for a long period.
uLesson – an ed-tech start-up founded by Sim Shagaya, owner of Konga Store and DealDey is currently the leading ed-tech business for students as it allows users through its platform to experience a digitalized learning by taking lessons, mock exams, and access their performance through a well-detailed user-friendly dashboard.
Before its establishment in February 2020, the ed-tech start-up has already secured over $3.1 million for its funding from TLcom Capital.
Read Also: Analyzing the utility of blockchain technology for mobile apps
Autochek
Autochek, an automotive technology company set out to transform the African automobile industry by creating a single marketplace for consumers’ automotive needs, from sourcing and financing to after-sales support and warranties.
Startup veteran Etop Ikpe, once of DealDey and Cars45, launched his new venture – Autochek – with a bang in September 2020, announcing the acquisition of automotive marketplaces Cheki Nigeria and Cheki Ghana, previously part of ROAM Africa’s portfolio of leading online marketplaces.
ROAM Africa, Cheki’s parent company, has transferred ownership and operational control to Autochek of its Nigeria and Ghana brands Autochek, and all Cheki Nigeria and Cheki Ghana outlets will be rebranded. The auto-tech company followed this up in November by announcing it had raised a US$3.4 million pre-seed funding round to help it grow its operations and develop its platform.
Flutterwave
Flutterwave is a top fintech start-up in Nigeria established in 2016 by a team of engineers, ex-bankers, and entrepreneurs.
Flutterwave builds modern payments technology and infrastructure, with its solution enabling banks and merchants to replace multiple payment integrations with one simple API, which enables processing of any form of payment anywhere in Africa.
Since its inception, Flutterwave has processed over 100 million transactions worth more than $2.6 billion and has over 50 banks partnering with them across Africa. This fintech start-up company has its headquarters based in San Francisco, USA, and offices in Lagos-Nigeria, Johannesburg-South Africa, Accra-Ghana, and Nairobi-Kenya.
The startup was already well-backed, raising US$10 million in Series A funding in August 2017 and then an extension round in 2018, and in January 2020 it secured a $35 million Series funding round from a consortium of strategic investors to support its expansion into new African markets.
It currently has an active presence in 10 African countries, including Nigeria, Ghana, Kenya, and South Africa among others.
Kobo360
Despite the huge infrastructural gaps, Kobo360 is making impressive waves in the Nigerian logistics business through technology.
Kobo360 is a tech-enabled digital logistics platform that aggregates end-to-end haulage operations to help cargo owners, truck owners, and drivers, and cargo recipients to achieve an efficient supply chain framework.
The start-up — with an Uber-like app that connects Nigerian truckers to companies with freight needs — will use the funds to pay drivers online immediately after successful hauls.
Through an all-in-one robust logistics ecosystem, Kobo uses big data and technology to reduce logistics frictions, empowering rural farmers to earn more by reducing farm wastages and helping manufacturers of all sizes to find new markets.
The start-up has refused to be intimidated by heavyweights such as UPS, FedEx, and DHL and has invested heavily in the haulage business.
The logistic start-up has been accepted into Y Combinator’s 2018 cohort and raised $1.2 million. Kobo360 was founded by Obi Ozor.
Chaka
Chaka is a fintech company that was launched in 2019 to provide an investment platform for users. Chaka provides opportunity for consumer to invest in the foreign stock market such as the New York Stock Exchange, and NASDAQ, along with Nigerian own local stock exchange.
Chaka is currently led by Tosin Osibodu and renders a two-system opportunity to invest in the stock market by both local and foreign investors. Piggybank.ng is an online savings platform that enables savers to put away funds that they do not need and withdraw easily when the saving duration expires.
Piggy Bank
With PiggyBank, savers can save as little as $1 a day and then restrict the withdrawer of their savings to a specific chosen date.
Unlike a regular bank’s savings account, where you can access the money at any time, Piggybank.ng helps its users maintain their savings discipline while building their savings culture, as they save towards something big.
Piggybankers can earn on average 6percent per annum on automated savings or 10.95percent per annum on the fixed deposit product, Safelock, and can withdraw funds for free once per quarter.
Piggybank.ng which is cofounded by Somto Ifezue, Odunayo Eweniyi, and Joshua Chibueze, is now particularly popular amongst Nigeria’s Millennials, for whom going online via their mobile phones for day-to-day transactions is second nature, and who currently make up 60 percent of the company’s registered users.
Having recorded staggering savings growth of 3000percent between 2016-17, with the Piggybank.ng community have saved over $5million, the company has commanded the attention of a group of Nigerian investors, led by Olumide Soyombo, Co-founder of Leadpath, who have helped the company raise $1.1million.
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