A wave of economic turmoil is hitting Nigerians—and, by extension, startups—eroding their purchasing power. In response, one startup is turning to international markets under new leadership.
The recent green light from Egypt’s Financial Regulatory Authority (FRA) for a raft of new fintech licenses hints at the favorable regulatory environment in SWVL’s home market.
The firm was an early investor in Andela, a company that trains software developers across the continent, and in Okra, a Nigerian open finance fintech infrastructure company.
This surge in fintech licensing comes on the heels of the FRA’s decision last year to grant a one-year extension for non-banking finance companies to meet increased capital requirements.
Beyond financial efficiency, Leta’s asset-light approach sets it apart from earlier African logistics startups such as Sendy, Lori, and KOBO360, which took an asset-heavy model aggregating trucks and acting as intermediaries.
The increase in deposits from R6.3bn ($347.11m) in June 2024 reflects the continued growth of the digital lender, which reached a milestone of 10.7m customers by the end of December.
A brokerage licence grants firms the authority to buy and sell securities on behalf of clients, act as intermediaries in financial markets, and charge commissions and fees.
