The news:
- GetEquity, a Nigerian equity crowdfunding platform, has reached profitability.
- The company pivoted from equity-based funding to local debt investments.
- This strategic move allowed GetEquity to generate consistent revenue streams.
GetEquity, a Nigerian equity crowdfunding platform, has announced its first profitable quarter, marking a significant milestone in its journey. This achievement comes after the company pivoted from its initial focus on equity-based funding to local debt investments.
Launched in 2021, GetEquity’s mission was to create accessibility to investment opportunities by helping individuals own stakes in emerging startups and participate in Africa’s growing venture funding ecosystem. However, as investor appetite for early-stage equity slowed, GetEquity adapted its approach to meet market demand. The company transitioned to enabling retail investors to lend to Nigeria’s largest corporations through commercial papers and debt notes.
In 2024, GetEquity introduced debt notes, allowing local investors to fund major companies and offering them a fixed return. The pivot has proven successful, with GetEquity processing over ₦500 million (around $310,000) in transactions since then, growing at a rate of 10% per month.
This transition was made possible through strategic partnerships with asset managers like ARM, enabling GetEquity to offer commercial papers for large Nigerian firms, including the Dangote Group—its first offering. These commercial papers have attracted significant interest from retail investors looking for more predictable returns, highlighting the growing demand for alternative investment vehicles in the African market.
“When we sent the Dangote mail, we thought if we could get ₦5 million, it was a win,” Dike said. “The initial responses added up to ₦7 million. Not bad. But then, within three days, we had ₦27 million pledged. That was our eureka moment,” Jude Dike, CEO at GetEquity, told TechCabal.
The decision to explore local debt notes was driven by the need for more predictable and consistent revenue streams. By offering short-term debt instruments to local businesses, GetEquity was able to diversify its income sources and reduce reliance on the volatile equity market. This strategic move has not only stabilised the company’s financials but also positioned it as a key player in the alternative finance space in Nigeria.
Looking ahead, GetEquity plans to expand its debt offerings and explore partnerships with financial institutions to further enhance its product offerings. The company’s leadership remains committed to its mission of democratising access to capital for local businesses, ensuring that its growth benefits the broader Nigerian economy.
