Roqqu, a Nigerian cryptocurrency exchange, has acquired Flitaa — a Kenyan-based crypto startup operating across four African countries in a deal that marks the first publicly disclosed crypto consolidation on the continent.
Founded in 2021, Flitaa allows users in Kenya, Ghana, Uganda, and Tanzania to trade cryptocurrencies via a simplified interface.Roqqu, which was also launched in 2019, will integrate Flitaa’s operations into its platform, as it braces for greater pan-African presence.By absorbing Flitaa, Roqqu sidesteps the compliance hurdles of launching from scratch in a new jurisdiction and gains a tested product and user base 72,000 strong.
“Rather than go through the entire hassle of setting up from scratch, we saw value in their groundwork, especially their plans to expand into Uganda, Rwanda, and Tanzania. They had already set up the operational processes in these countries,” said Ayo Shonibare, Roqqu’s chief marketing officer.
Shonibare told TechCabal that the acquisition will bolster Flitaa’s operations in the region, which have suffered from capital limitations and slim product offerings. Roqqu records that it has 250,000 daily users and about 58 listed cryptocurrencies.
The acquisition follows a string of Nigerian startups expanding in the region. In June, Fincra secured a licence from the Bank of Tanzania, while Grey set up an East African base in Nairobi. Investment platform Risevest has also explored Kenya through acquisition of Hisa.
These moves come as Nigerian firms look beyond a crowded domestic market, drawn by East Africa’s high mobile money adoption and comparatively lighter regulatory environments.
Moreover, reduced startup funding in Africa has prompted consolidation as a survival and growth strategy. As capital becomes scarcer, smaller startups are looking up to stronger firms to achieve scale. On the flip side, bigger companies looking for expansion but are derailed by regulatory gridlocks can ride on the licenses of their acquired units.