Lagos - Spark, the internet group, is investing about US$2 million to expand its services in Nigeria.
Officials revealed the funds have been raised from a syndicate of 17 international investors.
The company, which currently has offices in Lagos, will in the coming months open more outlets around the country.
Joint founders of the company, Jason Njoku and Bastian Gotter, welcomed the funds saying these would enhance the company's growth into one of the continent's leading internet groups.
“We set out to grow the Spark companies to be market leaders. This requires capital. Our companies are laser focused, totally exceeding our initial expectations and showing increasingly strong metrics.
"Every Spark company focuses and generates revenue which we feel is essential to the survival of any Internet startup in Nigeria. Bastian and I were impressed with their output, as one of the pre-eminent Internet groups in Nigeria and Africa," Njoku said.
“Capital here in Nigeria is prohibitively expensive for most, so start-ups tend not to be able to grow at the rate that is required to become a mature and profitable business. With this additional investment of $2 million, we are now able to channel even more funds to the companies who will one day lead the continent’s internet space,” Gotter said.
Spark companies currently employ 130 people across nine companies, three of which have already secured second-round seed investments totaling an additional $700 000 from Njoku and Gotter, primarily to build upon their current market leading positions, compete more effectively and enable them to expand fast enough to meet consumer demand.
Spark companies collectively generate $50 000 turnover a month.
Spark has invested in some of the country's most successful internet startups including hotel room booking site, hotels.ng, bus.com.ng and tolet.com.ng.
– CAJ News