Why African fintech startups are so attractive to investors
The recently-released African Tech Startups Funding Report released by Disrupt Africa found fintech was the most popular destination for funding in the tech sector after solar in 2015.
The report found fintech startups attracted 29.6 per cent of total investments over the course of the year, more than US$55 million, with notable rounds for the likes of WiGroup, Paga, Aella Credit, Nomanini and Kopo Kopo.
This trend replicates that seen globally. Research by KPMG and CB Insights found 2015 was a record year for investment in fintech startups, with US$19.1 billion invested globally. The financial services industry is one of the largest in the world at US$11 trillion in revenue, with Accenture estimating that 35 per cent of this is at risk due to disruption in the industry from fintech.