If you'd gamble on a 'Netflix of Africa' 5 years ago, you'd have done a 3000% return

As Nigeria’s tech space has grown over a final few years, it has drawn a attention—and money—of extraordinary investors. But there have been questions with a still-maturing tech attention if any investors are creation poignant essential exits.

Well, maybe some of them have. Jason Njoku, owner of iROKOtv, a online streaming use mostly dubbed a ‘Netflix of Africa’, says his early investors done a whopping 3,000% profit on their early investment.

Less than a year aged during a time, Njoku says a investors paid $80,000 for 10% of a iROKOtv though sole a whole interest progressing this year to other existent investors, for $2.4 million. It doesn’t indispensably indicate iRokoTV was valued during $24 million since as early investors it is expected their stakeholding was reduced with successive rounds of funding.

In a typically frank blog post Njoku explained his tour with investors:

$80k for 10% of iROKO. That’s an $800k valuation. At a time it was crazy for a reduction than one year aged company, that had generated $200, $1k and $6k in a prior 3 months. we was a terrible adjudicator then, so was flattering desperate. we indeed offering an aged university crony of cave 35% for about $50k. Thank God Bastian [iRoko co-founder] did a traffic and was a reduction inexhaustible than I. In a end? He passed.

Earlier this year, after 5.2 years, a same investors sole their whole interest for that they paid $80k for in 2011. For $2.4m. $2,400,000.00. With Naira during N300, that’s N720m. Thats a x30 ROI. 3,000%. It took 5 years.

Five years after launch, iROKOtv stays a heading actor in a video-on direct space. In January, usually weeks after Netflix announced a Africa launch, iROKOtv lifted $19 million from French wire use Canal+ and a Swedish-based media association Kinnevik AB. The money, a association said, will be invested in producing 300 hours of strange content this year and double that by 2018. iROKOtv has grown popular, quite outward a continent where 55% of a subscribers are located. Offering a operation of titles, a online use allows Africans in a diaspora watch flicks on subscription formed packages of around $5 per month.

Njoku, who was named a Quartz Africa Innovator 2015, is himself an active financier and coach to startups in Nigeria. Now one of a biggest destinations for try collateral on a continent, Nigeria ranked usually behind South Africa for investment lifted in 2015.

Sign adult for a Quartz Africa Weekly Brief — a many critical and engaging news from opposite a continent, in your inbox.

You must be logged in to post a comment Login

Widgetized Section

Go to Admin » appearance » Widgets » and move a widget into Advertise Widget Zone