Startups in Nigeria’s commercial hub of Lagos attracted 42% more investment last year, showcasing the city’s appeal as a hub for new enterprises.
The presence of so many unicorns “usually have an effect,” Dealroom founder Yoram Wijngaarde said in an interview. “When people see success they become more ambitious.”
Lagos has spawned homegrown billion dollar companies (unicorns) such as Flutterwave, Moniepoint and Interswitch Ltd.
Companies in Lagos raised $252 million last year, up from $178 million in 2023, according to the Netherlands-based research firm Dealroom.co.
Lagos, with a population of more than 22 million, has lured investors even as funding for African startups has dropped.
Inflows into African startups dropped 22% to $3.6 billion last year compared with 2023, according to London-based African Private Capital Association.
Dealroom assessed 288 cities in 69 countries from 2017 to 2024. In its first ranking in 2022, Bangalore was the fastest-growing city. It trailed Lagos in the latest ranking, as it became “somewhat mature” market, according to Wijngaarde.
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