Tiger Global, a prominent New York-based investment firm renowned for backing global success stories like Stripe, JD.com, and Roblox, has re-emerged as a significant player in Africa’s startup ecosystem. Since its return in 2021, Tiger Global has actively invested in African startups, focusing heavily on fintech.
With a $6.7 billion Private Investment Partners 14 fund, Tiger Global made a record number of global private investments in 2021, including ten deals across nine African startups. These include notable names like Flutterwave, FairMoney, Mono, Union54, and Float. The firm’s investment in Flutterwave marked its reentry into the African market after a years-long hiatus.
Tiger’s Early Ventures in Africa
During its initial foray into Africa between 2009 and 2014, Tiger Global concentrated on consumer internet startups, investing in Nigerian companies like Jobberman, Wakanow, and IROKOtv, as well as South Africa’s Takealot. These early investments targeted industries like media, commerce, and travel, aiming to tap into Africa’s growing internet adoption.
However, challenges in scaling consumer internet businesses in Africa limited their long-term returns. Despite some successes, such as Naspers’ acquisition of Takealot, other ventures like Wakanow and Cheki faced significant hurdles. Tiger’s exit from Africa in 2014 followed limited follow-on investments in its portfolio companies, leading to speculation about its confidence in the market’s profitability.
The Rise of Fintech: A New Opportunity
Tiger Global’s return to Africa in 2021 was driven by the continent’s fintech boom. The firm’s lead investment in Flutterwave, a prominent payments platform, valued the startup at $1 billion, marking Africa’s growing appeal for global investors. This was followed by investments in fintech startups like Mono, Union54, Bamboo, and Thndr, signaling a strategic shift to capitalize on the region’s financial technology ecosystem.
Fintech dominates Africa’s venture capital landscape, making it an attractive sector for Tiger Global. The firm’s approach often involves investing in startups at later stages (Series A and beyond), leveraging local investors to de-risk opportunities. However, Tiger has also shown interest in early-stage ventures, such as Float and Union54, suggesting a willingness to nurture future market leaders.
Strategic Adaptation and Future Outlook
Tiger Global has refined its strategy for its second stint in Africa. Unlike its earlier investments in consumer-focused startups, the firm now emphasizes resilient, infrastructure-driven fintech models. Its recent $11 billion fund, Private Investment Partners 15, positions it to expand its footprint further across Africa’s fintech and adjacent sectors.B2B e-commerce, with embedded financial services, is one area of growing interest. For example, Wasoko (formerly Sokowatch) demonstrates how credit and other financial tools can complement retail operations, attracting investor attention. Industry experts predict Tiger Global will explore other models as Africa’s smartphone adoption and internet access costs improve, creating opportunities in consumer-facing sectors with fintech components.
The Tiger Approach
Tiger Global’s investment style is characterized by rapid decision-making and thorough pre-meeting due diligence. Founders and industry insiders describe the firm as decisive and highly efficient, with deals often closing within weeks.
As Africa approaches an “India moment” of technology adoption and scaling, Tiger Global is poised to play a pivotal role in identifying and backing the region’s next wave of unicorns. Its strategic reentry underscores the growing confidence in Africa’s startup ecosystem as a hub for innovation and growth.
