Terragon Group, a Lagos-based digital and marketing tech solutions provider, has just raised $5m from TLcom Capital.
This is only TLcom Capital’s second investment in Sub-Saharan Africa (SSA) since it announced a $40m seed fund dedicated solely to startups on the continent in 2017. The first commitment came by way of participation in Andela’s $40m Series C round.
“We liked that the business (Terragon Group) has matured into a new platform with very strong technology behind it,” TLcom Capital Partner, Ido Sum told TechCrunch. “It allows the largest advertisers and brands to reach consumers in a way they couldn’t do before.”
TLcom Capital’s model is to reach out to startups it finds interesting, not the other way around. The firm maintains a database of over 900 “investible companies” in SSA, from which it plans to pick about 10 to 12.
For Terragon Group, this is the first publicly known institutional investment they are involved in. In fact, according to Elo Umeh who founded the group in 2009, they have practically bootstrapped their way to profitability, generating as much as $5m annual revenue from a range of solutions and products.
This begs the question of why Terragon Group needs venture capital at all. For Elo Umeh, it’s all about expansion. Terragon Group currently employs over 100 people across offices in Nigeria, Kenya, Ghana and South Africa. The plan is to spread their tentacles even farther.
“Today the strategy is to be dominant on the continent of Africa,” Umeh told TechCrunch. “At some stage we’ll look at licensing our technology into Southeast Asia and Latin America.”
Nigerian startups raised $17.6m in Q1 2019, 8.5% higher than they did in Q1 2018. Find out more in the latest quarterly edition of the Nigerian Startup Funding Report here.