After pivoting to debt investments and making strategic layoffs, GetEquity, the Nigerian startup enabling retail investors to engage with local markets, has reached profitability. The company’s expansion into commercial papers and debt notes comes as retail investors increasingly seek safer, low-risk alternatives in a market facing a slowdown in venture capital funding.
CEO Jude Dike shared, “We’re not yet at the stage where we can spend heavily on growth or expansion, but we’re able to pay our team and keep the business going without needing outside capital.”
Originally launched in 2021 to allow individuals to invest in startups, GetEquity had to pivot when liquidity into startups slowed. The company redirected its efforts to providing Nigerians with opportunities to lend to some of the largest corporations in the country through commercial papers and debt notes.
Since introducing debt notes in 2024, GetEquity claims it has processed over ₦500 million ($310,000), achieving a monthly growth rate of 10%. The company partnered with asset managers like ARM to offer commercial papers to retail investors, with notable offerings such as the Dangote Group becoming one of their biggest successes.
Dike recalled, “When we sent the Dangote mail, we thought if we could get ₦5 million, it was a win. The initial responses added up to ₦7 million. But then, within three days, we had ₦27 million pledged. That was our eureka moment.”
This overwhelming response validated GetEquity’s belief that Nigerians were eager to invest in low-risk, local debt instruments, providing the company with a clear path forward.
In tandem with this shift, GetEquity restructured its internal operations. Much of the back-end work, including investment memos, due diligence, and audits, was outsourced to its asset manager partners. This allowed the company to streamline its focus on distributing these debt products to its investor base.
“We used to build internal tools and handle everything from financial processes to investor education,” Dike explained. “But with asset managers managing the heavy lifting, we now focus purely on distribution.”
GetEquity generates revenue through transaction fees from users and commissions from asset managers. It is also exploring new revenue sources by building a secondary market infrastructure, enabling users to buy and sell their investments, as well as offering credit-linked investment products backed by previous transactions.
“We’re working with a few financial partners to roll this out, which would open up new revenue streams,” said Dike.
The company is also pursuing an Approval-in-Principle from Nigeria’s Securities and Exchange Commission (SEC) for digital asset issuance and trading, a move that would allow GetEquity to offer tradable derivatives of SEC-approved securities.
Despite these successes, GetEquity’s journey has not been without obstacles. In 2023, the company faced a police complaint from Peppa, a startup offering escrow services, over an unpaid $43,000 raised through GetEquity. Dike attributed the issue to Nigeria’s foreign exchange instability, which made it difficult for the company to manage payments. This situation prompted GetEquity to shift its focus to Naira-based investments to mitigate currency conversion risks and volatility.
“Our private equity deals had great margins, but currency conversion risks were a major issue,” Dike said. “That’s when we started thinking more seriously about investing in Naira and understanding what the local market dynamics could look like.”
The company’s profitability has also led to a shift in its expansion plans. Initially, GetEquity aimed to expand into Kenya, but with profitability now achieved, the company has decided to deepen its focus on debt products and incentivize user referrals instead.
“Rather than aggressively expanding, we focused on deepening user engagement and building organic growth,” Dike explained. “Hypergrowth is tempting, but in African markets, it often leads to high churn.”
Looking ahead, GetEquity plans to achieve $1 million in annual recurring revenue and roll out business accounts that will help fintechs and neobanks with their treasury operations. The new product will be similar to those offered by platforms like Cowrywise and Piggytech for fixed-income assets.