Tizeti, a Y Combinator-backed internet service provider operating in Nigeria, Togo, and Ivory Coast, has confirmed plans to list on the Nigerian Exchange (NGX). This long-anticipated move comes two years after the company first revealed its intention to go public.
The Initial Public Offering (IPO) aims to attract a diverse pool of investors at a time when global venture capital funding has slowed, while offering early investors an opportunity to exit. By raising capital in naira, Tizeti hopes to mitigate economic pressures like currency devaluation and achieve more sustainable growth in the challenging economic climate.
Temitope Osunderin, Vice President for Marketing at Tizeti Networks, noted that the company has not yet finalized the IPO timeline but remains focused on its core growth initiatives: “We have started that journey but are focused now on the launch of our fiber broadband service. We will share more information on the IPO shortly.”
Tizeti’s listing could provide a much-needed boost to the NGX, which has struggled to attract Nigerian startups in recent years. While many African tech companies prefer to list on foreign exchanges like the NYSE or NASDAQ, those markets have proven difficult. For example, Jumia, the e-commerce giant, saw its stock price drop from $14.50 at IPO to $4.64 today, with its market cap shrinking to $469 million from a peak of nearly $2 billion. Similarly, NASDAQ-listed mobility company Swvl experienced a steep decline in its share price, falling from $247 per share in 2021 to $6.34 in 2024.
Tizeti’s IPO could signal a new era of local tech listings, bringing growth opportunities to both investors and Nigeria’s economy.
Given the mixed success of foreign listings for African startups, industry experts like Iyin Aboyeji suggest that startups should consider listing on the NGX once they achieve $1 million or more in annual recurring revenue (ARR). “They need to think carefully about why they need to raise a Series A and from whom. Raising a Series A from a fund that can’t fund you to a global IPO scale is a fool’s errand,” Aboyeji commented in response to Tizeti’s announcement on LinkedIn.
Founded in 2013 by Kendall Ananyi and Ifeanyi Okonkwo, Tizeti aims to make the internet more affordable and accessible in West Africa. The company reported $1.2 million in revenue from 3,000 subscribers in 2018. Supported by Y Combinator, 4DX, and Ventures Platform, Tizeti has raised $7.4 million in two funding rounds since its inception.
In 2014, Tizeti distinguished itself by offering unlimited, uncapped internet at affordable prices, leveraging undersea cables from providers like MainOne and solar-powered towers. The company believes its solution is superior to satellite-based internet providers like Starlink, which are more expensive and prone to congestion.
Tizeti’s offerings include subscription-based unlimited internet access for homes and businesses in Nigeria and Ghana, co-branded Wi-Fi hotspots with Facebook in high-traffic areas, Voice over IP (VoIP) services, and the recently launched FREEFIBER.AFRICA, a subscription service providing a US IP address, phone number, debit card, and mailing address for $10/month. Tizeti’s network currently delivers over 180 terabytes (TB) of data daily, with a total of 35,219 TB expected by December 2023.
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