Flutterwave, OPay Push Lagos Startup Ecosystem Value To $8 Billion

Flutterwave, Opp Values Lagos Startup Ecosystem at $8 Billion, Largest in Sub-Saharan Africa. People are paying too much attention to this news. If you also want to know the news then stay with us till the end. Flutterwave and OPay, two prominent technology companies in Lagos, have played a significant role in propelling the city’s startup ecosystem to new heights, making it the largest in Sub-Saharan Africa.


According to a recent report by Startup Genome, Lagos has surpassed other regional contenders such as Nairobi and Cape Town in terms of both ecosystem value and funding raised. The report reveals that the value of Lagos’s startup ecosystem, calculated using the value of exits and startup valuation from the second quarter of 2020 to 2022, amounts to a staggering $8.4 billion. Nairobi closely follows with a valuation of $7 billion, while Cape Town trails behind at $3 billion. Furthermore, Lagos-based startups have managed to raise approximately $820 million in early-stage funding, the highest in the region.

Notably, two major funding rounds contributed significantly to the growth of Lagos’s ecosystem. In August 2021, OPay secured a monumental $400 million in Series C funding, marking the region’s largest deal. This was followed by Flutterwave’s $250 million Series D funding round in February 2022, which pushed its valuation over the $3 billion mark. These substantial investments in Lagos-based companies demonstrate the confidence that investors have in the city’s startup ecosystem.

While Lagos stands tall as the leading tech hub in Nigeria, the report also acknowledges the emergence of other notable ecosystems in the country. The capital city of Abuja, along with Kampala, Dar es Salaam, Dakar, and Abidjan, made it to the top five emerging tech startup ecosystems in the region. However, Lagos’s dominance remains unchallenged, as it is home to more than 88% of tech startups in Nigeria, totaling over 400 companies. Fintech commands the largest share, constituting 49% of the tech companies in Lagos.

The positive trajectory of Lagos’s startup ecosystem can be attributed to various factors. In October 2022, the Nigerian government signed the startup act into law, which provides crucial regulatory frameworks and incentives for startups across the country. Startups can benefit from a four-year exemption from income tax and additional tax relief equal to 5% of taxable profits for up to five years. Initiatives like the Lagos state KITE program have also contributed to the growth of the tech hub. Lagos is expected to thrive further, attracting more investments and driving innovation in Sub-Saharan Africa.