Nigerian tech market low on merger, acquisition, says Flutterwave co-founder

The co-founder of Flutterwave, Iyinoluwa Aboyeji, has disclosed that the Nigerian tech market is low on merger and acquisition with most preferring the organic growth route in their bid to become a unicorn or exit to a venture capital fund.

Aboyeji opined this in a series of tweets posted on his Twitter page at the weekend, stating that a startup will not always conquer a market where corporations exist, like the story of David killing Goliath.

“Valuations are pretty high and you may not be worth that much on paper but you can grow into that lofty valuation by acquiring startups who are well on their way to where you need to go to earn your val,” Aboyeji tweeted.

In his view, acquiring certain assets could be helpful during sluggish market periods, “There are lots of undervalued old economy assets you can pick up if you look carefully enough and they can be a bulwark for your valuation when markets inevitably slow down.

“It is a lot of work and it requires a lot of patience, discipline, and wisdom but you can pull it off,” Aboyeji, who now invests in startups through his investment firm, Future Africa, wrote.

The notable merger and acquisition reported in the Nigerian tech space is the acquisition of peer-to-peer lending startup, Abeg, by Piggyvest, as well as retail-tech startup, Alerzo, acquiring Shago Payments, and tech-driven mobility firm, Treepz (formerly Plentywaka) buying out Ugandan bus company, Ugabus.