DLM’s BankSofri to leverage NGX tech board for investment
By Business AM
Over the years, access to liquidity or funding within the capital and debt markets has seen many startups in Africa suffer setbacks, creating a funding gap in the tech space; and efforts aimed at bridging this gap is agonised by availability of special vehicles to give startups the required funding and exposure.
In December 2022, the Securities and Exchange Commission (SEC) approved that Nigerian tech startups can now get listed on the Nigerian Exchange Technology Board. The newly approved technology board aims to encourage investments in indigenous technologically inclined companies and others across Africa, provide greater visibility to these companies and ultimately deepen the Nigerian capital market.
In a chat with Business A.M, Funsho Idowu, managing director and chief executive officer of Sofri (powered by Links Microfinance Bank), a subsidiary of DLM Capital Group, expressed optimism on the development from the capital market regulators, noting that it offers more access for qualified institutional investors, retail investors, as well as technology startups to leverage on capital markets, not just for liquidity, but for exposure as well.
Idowu, who spoke on how BankSofri, through DLM Capital Group, intends to leverage on the new development to attract investment on the Exchange, considering its intensified venture into the technology space, said with the creation of the digital banking platform, Sofri, Nigeria can tame those issues clogging the pipeline of investments through the capital market.
“We are happy with it. of course you will see our footprints, as DLM is at the forefront of raising funds from the capital market in Nigeria. Also, you will see us in the capital market significantly this year, as it makes our plan better.
“That is our expectation, in terms of viability to raise funds; we are now going to be raising funds from the general market, and capital market as well, and we are generally happy and excited about that,” he added while noting that the company’s investment has grown significantly by 80 percent between 2021 and 2022, adding that the growth is expected to go beyond 200 percent with the support of the NGX technology board.
According to Idowu, the launch of BankSofri by DLM Capital Group in 2022 is a game changer in the Nigerian fintech space, bolstered by the teeming youth population now buying into the technology space and its various tech-products-offerings which cut across banking, finance, health, lifestyle, entertainment, etc.
He noted that the digital banking platform, Sofri, is a one-stop-shop mobile app and subsidiary of the investment bank with a vision to become an enabler of financial liberty as well as providing easy access to financial products.