Y Combinator-backed Internet Service Provider Tizeti is set to become the first Nigerian startup to list on the Nigerian Exchange (NGX), according to a report by TechCabal.
The move represents a significant milestone for Nigeria's technology ecosystem and is expected to strengthen the company's ability to raise funds in Naira, reducing its reliance on venture capital funding in a challenging economic climate.
Founded in 2013 by Kendall Ananyi and Ifeanyi Okonkwo, Tizeti provides low-cost Internet services in Nigeria, Ghana and other parts of West Africa, using solar towers and undersea cables.
In 2018, the company achieved sales of NGN 880 million (USD 570,000) and raised USD 7.4 million in two financing rounds. This initial public offering (IPO) is a strategic step towards diversifying the company's sources of financing, particularly in view of the devaluation of the Naira and a sluggish economy.
The listing also represents a major step forward for the NGX, which has struggled to attract technology companies to the domestic market. Historically, Nigerian tech startups have preferred foreign exchanges such as Nasdaq or the NYSE, despite the varied fortunes of internationally-listed African startups such as Jumia and Swvl. Tizeti's local listing could serve as a model for other startups looking to expand their activities while remaining connected to their core markets.
Tizeti's services include unlimited Internet for consumers and businesses, public Wi-Fi hotspots and Voice over IP (VoIP). Recently, the company launched FreeFiber.Africa, an initiative aimed at providing low-cost fiber access. Tizeti currently handles more than 180 TB of data per day, positioning itself as a cost-effective alternative to satellite providers such as Starlink.
