Part 2 – 10 Fintech Companies Founded By Nigerians

Part 2 – 10 Fintech Companies Founded By Nigerians

Fintech has improved the finance industry at large and generated more possibilities for the Nigerian economy. It has brought complex banking processes to the masses and simplified them through user-friendly interfaces, boosting financial inclusion.

The preceding 5 Nigerian-owned fintech can be found in our previous article. Below are 5 other fintech companies founded by Nigerians:

6. Paga

Paga is a digital payment platform that enables customers to send and receive money home and abroad, as well as pay bills. Users can pay bills without opening an account. Paga is another renowned Nigerian fintech company established in 2009 by Tayo Oviosu and Jay Alabraba. The company went public in 2011. In its first two years, it processed 4.4 million transactions worth over N47 billion. An angel round of investment earned Paga $700,000 from Tim Draper in 2010.

The company received its first venture capital funding in 2011 and the amount was undisclosed. In 2012 Paga received a grant worth $2 million from EFInA to work on developing the company's ability to deliver low-cost financial products through its agent network. In the same year, they raised $9 million in funding from a series A round through the following investors: Acumen, Adlevo Capital, Capricorn Investment Group, Goodwell Investments, and Omidyar Network. ‌‌Paga continued to progress with its mission of making financial services accessible to all. Their agents act as human ATMs, giving cash to account holders and non-holders, and transferring money using the recipient’s phone number.

In 2015 they had the first Series B round and received $ 15 million in funding. Paga became the first mobile payment company in Nigeria to hit the one million user milestone by the next year. They had processed almost 10 million transactions worth over N156 billion in 2017 before a Series B round continued in 2018, raising them $ 10 million. Paga now has over 19 million users and has partnered with 1000+ merchants including Dstv, Gotv, AEDC, IKDC, Nairabet, and Smile; and over 3,500 agents.

‌‌‌‌‌‌‌‌‌‌7. Remita

John Obaro resigned as a Banker, and in 2005 he launched Remita. It was fully developed by SystemSpecs and remains a subsidiary of the fintech group. Remita is a payment solution platform for individuals and businesses. It enables transfers, managing accounts across multiple banks, recording transactions, paying bills, and more. ‌‌The Remita initiative was borne out of the issues faced by corporates in making payments after salary processing. Mr. Obaro said he wanted to automate payments from the source until the beneficiary endpoint.

In 2014, Remita's CEO disclosed that ₦‎500 billion worth of E-transactions is processed through Remita, monthly. Remita became the payment gateway used by the Nigerian Governments’ Treasury Single Account (TSA) in 2015. Since then, over ₦‎5.244 trillion ($20 billion) has been processed for the Ministries, Departments, and Agencies (MDAs)/of the government. This adoption brought transparency and easy management of the over 20000 MDA accounts. Remita also partners with three financial institutions, Access PayDay, Carbon, and Page, to make loans available to its users.

Notably, the platform was the first to offer usage eNaira – a CBN-issued digital currency – to its users. ‌‌In 2017 Remita launched its mobile app in a bid to help individuals better manage their finance. In 2020 Remita and Cellulant formed partnered to further boost financial inclusion in Nigeria. Cellulant has an extensive agency network including Ministries, hospitals, electricity and water companies, departments, agencies, etc. The partnership enables easy payment from Nigerians to these billers. ‌‌In 2022, the Central Bank of Nigeria (CBN) named Remita Payment Services Limited (RPSL), as a payment service provider of the year.

8. Moniepoint (team apt)

Moniepoint Inc was formerly known as  TeamApt Inc. It is a fintech company founded by Tosin Eniolorunda and Felix Ike in 2015. Its focus was on providing financial solutions like POS, Payments, and business loans. Moniepoint is recognized by CBN as a fintech that has aided financial inclusion. Moniepoint was named one of the most promising fintech startups of 2022 by CB Insights.

In 2019, a Series A fundraising from Quantum Capital Partners raised Moniepoint funding of $5.5 million. Moniepoint announced in 2021 that it raised an undisclosed capital in a Series B Funding round led by Novastar Ventures. They raised $50 million in pre-series C funding led by QED investors.

Over 600,000+ successful businesses have been recorded to use Moniepoint services. Accounts can be opened for free, with physical cards that work with ATMs.

9. Bamboo

Bamboo is a fintech company specializing in investments. It has a micro-investing app that allows users to invest in commodities & cryptocurrency across the world. In 2020, Bamboo was founded by Richmond Bassey and Yanmo Omorogbe. In less than three years, the company has experienced significant growth. The app offers over 3500 stocks and ETFs (Exchange Traded funds)to choose from and over 50000 active investors.

They raised pre-seed funding of $2.4 million to facilitate the initiative in the first year. In a new Series A round financing round, co-led by Greycroft and Tiger Global, the investment firm raised $15 million. Other investors in Bamboo's funding rounds include Future Africa, Motley Fool Ventures, Ingressive Capital, Magic Fund, Chrysalis Capital, and Y Combinator. By April 2021, they had executed over 750000 unique trades on the app.

Richmond Bassey noted in an interview with Tech Crunch, that investing in stocks with the constant devaluation of the naira is an expensive and tedious process. They built Bamboo to help simplify that task; Nigerians can set up an account in minutes and buy and trade global stocks in real time. Bamboo had over 300,000 users as of January 2022, and currently, the number has risen to 500,000. They are aiming at helping millions of Africans to invest in foreign company stocks, especially U.S. stocks.  US stocks portfolio are SIPC insured up to $500,000.

10. Etranzact

Etranzact is a Nigerian-owned fintech that powers payments and collections for government and businesses. It was founded in 2003 by Valentine Obi and its headquarters is located in Lagos, Nigeria. They have operations in Nigeria, Ghana, Kenya, Zimbabwe, South Africa, Cote d'Ivoire, and the UK.

Etranzact is funded by one lead investor, African Capital Alliance, and had its one and only funding round on Mar 1, 2008, from a Private Equity round. They have been in partnership with, Government Parastatals, various commercial Banks, ICT, Aviation, 70 Universities in Nigeria, etc. The company delivers electronic payment solutions through transaction switching, and payment processing across POS, mobile, and web.

ETranzact has gone public on the Nigerian Stock Exchange with a fully paid-up capital of 4.2 billion shares. They also provide maintenance and software development services. In 2022, Etranzact hit $ 3.3 million in revenue with over 7000 customers.

Note that these 10 fintech companies listed in part 1 and part 2, are not ranked by a certain measure. They are selected for being some of the forerunner Fintech companies that are popular, impactful, and established by Nigerians.

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