In Flutterwave’s press statement, as it announced the $250 million raise at $3 billion valuation, this line was included” “The new funds will drive Flutterwave’s ambitious expansion plan to accelerate customer acquisition in existing markets and growth through M&A, and develop complementary products while encouraging new innovations in its products and services development.“ In other words, expect more than organic growth: Flutterwave will be buying anything on its path. Those asking for exits in African startups should be ready because exits at secondaries (i.e. during higher rounds) and pure acquisition have a new actor.
In just five years, the company has “processed over 200M transactions worth over USD $16B to date across 34 countries in Africa. It also follows a year of rapid growth for the brand which now serves over 900,000 businesses across the globe.”
Then, “this latest fundraising has seen Flutterwave’s valuation more than triple since its last funding round in March last year “. Simply, it moved from $1 billion to $3 billion in less than a year! This is a huge redesign.
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At Tekedia Capital, we expect this redesign to be massive as Africa goes through decades-long digital transformation. Flutterwave is doing it in the financial services sector. Other startups are doing something similar in logistics, agriculture, real estate, retail, etc. We expect at least 15 unicorns by Dec 2023 in Africa, up from the current 6.
This is a cambrian moment of entrepreneurial capitalism. It would be a massive opportunity era. Tekedia Capital is fully into this moment and we expect along with our syndicate-investors to capture significant value.
The opportunities ahead are massive: Flutterwave has not scratched the surface. Why? “According to research done (Feb 2018) by The Fletcher School and Mastercard Center for Inclusive Growth, of the $301 billion of funds flows from consumers to businesses in Nigeria, 98 percent is still based on cash.” You can move that to say 80% now.
If you use Flutterwave total $16 billion in five years, on average, it is doing $3.2 billion per year. That $3.2 billion covers 34 countries. If we assume that it is doing 50% in Nigeria, the implication is that every year, Flutterwave processes less than $2 billion worth of transactions in Nigeria. (Note: this is average)
So, if you have $301 billion (which might have grown to $320 billion) and the largest firm is doing $2 billion, what does that tell you? Nothing has happened. We can have ten Flutterwaves! Keep building people and Tekedia Capital will be here to support.
Tekedia Capital invests in technology-anchored early stage startups and companies. Our opportunity antenna and grassroot connections with innovators enable us to see patterns as they develop. We invite you to partner with us as we nurture and build category-king companies in Africa and beyond, and in the process advance citizens, communities and nations. At Tekedia Capital, we fund the foundations of the NEXT African economy.
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I think it’s possible to do $10 billion in startups funding this year, that would mean 100% growth from what was achieved in 2021.
Whether as investor or founder, put Africa front and centre, the glory of the continent is still unfolding, you have to be part of the journey.
The revolution starts with fintech, because for other things to happen, money must exchange hands, and as fintech deepens, sectors where real stuff happen will begin to dominate, with fintech as the invisible operating system.
If you are not coming here, your journey might be too long…