FinTech companies received 62 % of the 4.9 billion US dollars, which were raised by African technology companies in 2021-fintech
FinTech companies received 62 % of the 4.9 billion US dollars, which were raised by African technology companies in 2021-fintech
FinTechs make up almost two thirds of the $ 4.9 billion, which were raised by African technology companies last year. FinTech groups also dominate with regard to financing that exceed $ 50 million, with a share of 40 % in the total number of technology companies.
The Covid-19 factor
of the $ 4.9 billion, which were raised by African technology companies in 2021, almost two thirds went to FinTech companies, as a new report shows. In transactions in which the upper capital exceeded $ 40 million, 40% of these transactions were on fintechs.
As shown in Latest africa Investment Report, the fintech-dominance in 2021 Finally in a phase with "the highest number of individual, non-M & a" [Mergers and Acquisitions] deals over $ 100 million "so far. The report also shows that Nigeria has the largest share of fintech companies that have raised more than $ 100 million.
In the meantime, the report indicated that the Covid 19 pandemic could certainly be the main declaration for the increase not only when financing fintechs, but also from non-fintech companies.
"Logistics and energy follow the volume of funding, but the recent wave of digitization-possibly reinforced by COVID-19-is driving sectors such as e-commerce, agriculture and healthcare," concluded the study report.
funding highly concentrated
The same report, however, admits that most of the funds raised in 2021 were focused on a few projects. The report explains:
Although in some cases highly concentrated, [which] is only less than 3 % of the overall open transactions, but constitutes over 55 % of the total open financing, these investment size has a considerable weight and acts as a pull factor for several investors.
In addition to equity financing, the data of the Africa Investment Report show that external financing becomes increasingly a willing route of financing. In order to underpin this claim, the report indicates that 6% of the total open funds were external financing in 2021.
In terms of the origin of the late-stage investors, the data show that the United States is by far the largest source of capital for African technology companies with a share of 62.5%. Great Britain follows in second place with a share of 7.5 %, followed by South Africa with 6 %and Canada with 4 %.
What is your opinion on this story? Tell us your opinion in the comments below.
Bedy verification : Shutterstock, Pixabay, Wiki Commons