Sabi, a Nigerian start-up, increased the amount it hopes to raise from investors in September by more than doubling to $125 million after exceeding its financial targets, Bloomberg reported on Monday, citing an interview with one of its co-founders.
The B2B marketplace is backed by Norrsken22, a new $200 million Swedish tech growth fund led by a group of foreign investors, and aims to connect informal traders and suppliers.
Sabi plans to establish a finance vehicle that will allow clients to access capital to expand, according to CEO Ademola Adesina. Sabi has a presence in Kenya and plans to expand into the South African market.
Africa, particularly Nigeria, is attracting hordes of venture capitalists from outside the country, including Softbank Group Corp and Swedish unicorns, who are eager to provide funding to promising and scalable start-ups in exchange for a stake in the company.
Ekovention, a venture capital event backed by San Francisco-based Tuyo Ventures, launched a call for pitches last week from Nigerian start-ups seeking at least $500,000 for expansion in sectors as diverse as smart cities, education agriculture, finance, and healthcare. The festival will begin on June 22nd.
In the same vein, the Nigerian Exchange is developing a new listing segment dubbed “technology board” after the US tech-heavy NASDAQ in the race for the market.
Sabi’s Series B funding is the most recent round, following a $6 million round in the first stage.
“We have few assets; we don’t own vehicles or warehouses.” We are a platform for those who own all of those. Mr Adesina was quoted as saying, “We are a platform for all of those middlemen.”
Founded in 2020, the firm reported $100 million in transactions in its first year of operation and now operates at an annualised rate of $350 million.
Mr. Adesina stated that his company’s ability to expand is based on the fact that it operates a platform with few physical assets.
Sabi began by focusing on FMCGs but has since broadened its scope to include agricultural products, chemicals, and electronics.
It has announced its intention to enter the $800 billion informal trade market in Sub-Saharan Africa.
According to the company’s website, it has over 10,000 agents and 150,000 merchants throughout Africa.