An internet service provider, Tizeti, which operates in Nigeria, Togo, and Ivory Coast and is backed by Y Combinator, is set to list on the Nigerian Exchange (NGX) after two years of announcing its plans to go public. The Initial Public Offering (IPO) will enable Tizeti to raise funds from a broader range of investors amid modest VC activity and offer early investors exit opportunities.
By raising capital in naira, the company, founded eleven years ago, aims to alleviate the pressure of meeting VC-level returns, particularly challenging due to naira devaluation and economic slowdown.
Temitope Osunrinde, Vice President for Marketing at Tizeti Networks, mentioned that the company is currently focusing on its fiber broadband service launch and will share more details about the IPO soon.
The impending IPO will be a significant development for the NGX, which has been striving to attract Nigerian startups to list on its platform without much success.
African startups often choose foreign exchanges like the NYSE for listing, but some have faced challenges in those markets. For instance, Jumia and Swvl Holding witnessed drops in share prices post their IPOs on foreign exchanges.
Considering the limited success stories of foreign listings for African startups, industry experts suggest that startups should contemplate listing on the NGX once they achieve substantial annual recurring revenue.
Established in 2013 with a focus on making the internet more affordable and accessible in West Africa, Tizeti reported $1.2 million in revenue in 2018 from 3,000 subscribers. The company has received backing from Y Combinator, 4DX, and Ventures Platform, raising $7.4 million in two funding rounds since its inception.
Setting itself apart in 2014 by offering unlimited internet at affordable rates, Tizeti relies on undersea cables and solar-powered towers for cost-effectiveness. The company’s products include subscription-based unlimited internet access, co-branded Wi-Fi hotspots, VoIP service, and a new subscription service called FREEFIBER.AFRICA.
Currently, Tizeti’s network handles over 180 terabytes of data daily, totaling more than 35,219 TB by December 2023.