Amid difficulties in the business environment in the country, Nigerian startups raised a total of $559.85m accounting for 35.2% of the total $1.589b raised by African startups. This topping funding to the business on the continent in the first quarter of 2022.
“In Q1 2022, African startups in the financial services space announced $752.62m in funding — 47.1% of the total amount raised. Companies in the marketplace industry came close, reporting $291.35 million and accounting for 18.2%. However, no other sector reached 10%.
Financial Services received $752.62 million. Nigerian startups raised $559.85 million, followed by Kenya with $429.79 million,” report said.
In Africa, amid the huge funding in FinTechs, several still lacks corporate governance structure. This hindering them from scaling up the Group Head, Payments, Cash Management and Client Access -Ecobank Group, Isaac Kamuta.
The aspect of trying to be faster than traditional banks makes Fintech not pay attention to governance and control structure. And this later become bottlenecks that hinder them from scaling up.
-Business News