By Somtochukwu Nnajiofor
Mr Roosevelt Elias, Founder and Chief Executive Officer of Payble, says investors are increasingly shifting capital away from speculative startup bets toward businesses with proven revenues, strong governance and sustainable growth models.
Elias disclosed this in an interview with the News Agency of Nigeria (NAN) on Monday in Lagos, while assessing the changing dynamics of startup funding across Africa.
He said the continent was witnessing a market correction following years of aggressive venture capital inflows that prioritised growth over business fundamentals.
According to him, only 162 unique investors participated in African startup deals between January and April 2026, representing the lowest level recorded since comparable tracking began in 2021 and a 26 per cent decline from the corresponding period of 2025.
He noted that the number of active investors had fallen sharply from 556 recorded during Africa’s startup funding boom in 2022.
“What has happened is more of a correction than a retreat.
“Global investors parachuted in, wrote cheques without ground-level diligence and expected growth trajectories that the continent’s infrastructure could not support at that pace,” he said.
Elias said African startups raised about 2.9 billion dollars in 2024, compared with 6.5 billion dollars at the peak of the funding cycle in 2022.
According to him, investors who suffered losses during the correction are now demanding stronger financial discipline, clearer governance structures and credible paths to profitability.
“The question now is whether the unit economics work and whether the business can generate sustainable returns.
“Investors want to see a path to profit, not a promise of one,” he said.
Speaking on Nigeria, Elias said the country remained Africa’s most active startup market, recording 205 startup deals in 2025.
He, however, noted that average deal sizes remained relatively small at about 1.6 million dollars compared with 6.9 million dollars in Kenya.
According to him, the figures suggest that while entrepreneurial activity remains strong, many Nigerian startups are yet to achieve the scale required to attract larger institutional investments.
Elias identified currency volatility, inflationary pressures and governance concerns as major issues influencing investor decisions in Nigeria.
He said the continued depreciation of the naira had made foreign investors more cautious because returns generated in local currency often lose value when converted to dollars.
“When you build in naira and report returns in dollars, every devaluation is a direct hit to investor returns.
“That changes how conservative international funds approach Nigeria-domiciled businesses,” he said.
The fintech executive said startups still attracting investment share common characteristics, including verifiable revenues, strong customer adoption, clear unit economics and products that businesses genuinely depend on.
He cited the example of fintech firms building critical payment and business infrastructure, saying investors increasingly favour companies with measurable commercial impact.
According to him, capital allocation in recent years has become concentrated among a smaller group of mature startups with proven business models.
Speaking on Payble, Elias said the company had built its business around solving real merchant challenges rather than chasing investor interest.
He said the fintech currently operated in Nigeria and the United Kingdom, providing a dual-market advantage that combined African growth opportunities with the regulatory credibility of the UK market.
According to him, Payble is presently raising pre-seed funding after validating its products with merchants and businesses across its operating markets.
Elias advised startup founders seeking investment to prioritise revenue generation, maintain financial discipline and establish strong governance structures early.
He said founders should focus on building businesses capable of surviving difficult economic conditions rather than relying solely on external funding.
“Build something people are willing to pay for from the onset and focus on creating real value for customers.
“A startup that rises with customers, contracts and transaction data is rising on evidence, not a story,” he said.
NAN reports that Payble is a fintech company focused on making trade easier for micro-businesses and individuals in developing countries such as Nigeria by enabling them to accept digital payments and reduce dependence on cash. (NAN)(www.nannews.ng)
Edited by Christiana Fadare