Nigerian businesses recorded 320 deals worth $5.7 billion (N2.41 trillion) in 2022, representing an average of one deal every working day. This is according to the recently released 2022 DealsBook Report, compiled and published by Nairalytics, the research arm of Nairametrics. Compared to the previous year, deals value decreased by 35.8% from $8.88 billion recorded in 2021, while the number of deals surged by 80.8% in contrast to the 177 deals recorded in the prior year. Deal-making, which encompasses various forms of capital formation activities such as venture funding, private equity funding, mergers and acquisitions, grants, equity raises, seed and series funding, and corporate bond issuances, is essential for both startups and listed companies in Nigeria.
One of the very clear benefits is that it provides companies with the necessary capital to expand their operations, launch new products, and scale. Fund generation through deal-making attracts foreign investors, lenders, and fund providers, which has a positive impact on governance and the economy. Despite tightening liquidity and inflationary challenges, 2022 in general was tagged a great year for the business ecosystem in Nigeria from a funding perspective. Specifically, the real real estate and proptech space in Nigeria was one of the biggest beneficiaries of this capital flow, recording its highest investment volume in the last decade.
More than 60 million dollars have flown into Africa’s proptech space, with over 6o startups currently operational. Last year alone, the real estate and Proptech industry in Nigeria saw $30.495m in direct investment. This traction is more than 3X the cumulative investment volume in the past decade. But beyond the numbers, what is even more interesting is where this capital is flowing from.
A high percentage of the funding came from global VCs and Accelerators including Google For Startups Black Founders Fund (US), MetaProp VC (US), and Techstars Accelerators (Canada). Some of the local investors include Future Africa, VFD Group, Voltron Capital, Decimal Point Ventures, Fast Forward Fund and a number of CEOs and Angel Investors.
The DealsBook report from Nairametrics provides access to valuable funding information across multiple sectors to guide investment decisions, support business growth, and contribute to the development of the Nigerian economy. Click this link to download the full report from Nairametrics.
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