Itana, a forward-thinking venture, has successfully secured a substantial $2 million in funding. This financial milestone is pivotal as it serves as the financial bedrock for Itana’s ambitious goal: to create Africa’s inaugural digital free zone.
Itana was conceived in early 2022 by Iyinoluwa Aboyeji, co-founder of Andela and Flutterwave,who unveiled an ambitious project known as Talent City, aimed at providing a solution for startups and service businesses seeking to expand their operations in Africa. Itana is supported by the Charter Cities Institute and Pronomos Capital, a venture fund backed by Peter Thiel. At the time of its inception, Itana had already secured a substantial investment of over $10 million, with additional fundraising efforts ongoing. The project’s physical location is set within Alaro City, situated in the Lekki Free Zone, just outside of Lagos, Nigeria. Itana’s primary goal is to address the challenges of unstable policies, infrastructural deficits, and other business obstacles that often hinder growth in the African market.
Why the Investors Invested
The substantial investment in Itana can be attributed to several key factors. Firstly, the project is led by Iyinoluwa Aboyeji, a co-founder with a successful track record in Andela and Flutterwave, making him a trusted figure in the tech industry. Additionally, Itana’s mission to create Africa’s first digital free zone aligns with the growing demand for innovation and expansion within the African tech ecosystem. By addressing the issues of infrastructure and policy stability, Itana offers a unique solution that could attract global businesses looking to tap into Africa’s burgeoning market.
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Moreover, Itana’s potential to improve Nigeria’s ease-of-doing-business index and drive foreign direct investment (FDI) is a compelling reason for investors to support the project. Nigeria’s existing free zones have primarily benefited industries like oil and gas and manufacturing, and Itana aims to extend these benefits to the digital and service sectors, which are poised for significant growth.
Finally, Itana’s plan to establish a virtual city in free zones for digital and service businesses, even before the physical city’s completion, demonstrates its commitment to innovation and scalability. The project’s partnership with the Nigerian government for services such as business licenses further enhances its attractiveness to investors.
A Look at Itana
Itana, founded by CEO Luqman Edu, COO Coco Liu, and Iyinoluwa Aboyeji, is positioned as Africa’s first digital free zone. It seeks to replicate the success of private-led free zones in Nigeria while catering specifically to the digital and service industry. The startup’s vision includes creating a virtual city, Itana Edge, which will provide online services akin to Stripe Atlas, enabling international businesses to access incentives without a physical presence in a Nigerian free zone.
The project’s primary market is Nigeria, with aspirations to become Africa’s Silicon Valley. Itana plans to commence its pilot phase with select companies, offering a “live-work-build” campus known as Itana District for networking, co-working, and co-living. The first phase of development is expected to be completed by 2027.
Furthermore, Itana’s revenue model includes annual subscription fees for business licenses, shared revenue with the government, and on-demand services through its one-stop-shop app. This diversified revenue approach is designed to support the startup’s growth and sustainability.
Itana’s potential success is bolstered by Africa’s growing software development industry and the influx of foreign direct investments. Additionally, favorable government initiatives, such as the Nigerian Startup Act and the appointment of a tech CEO as Minister of Innovation and Digital Economy, create a conducive environment for projects like Itana to thrive.
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Investors in Itana, including Future Africa, LocalGlobe, Amplo, and Pronomos Capital, recognize the significant market opportunity presented by the project. They believe that Itana has the potential to address infrastructure challenges while supporting a new generation of entrepreneurs in Nigeria and beyond, similar to the success of digital societies like e-Estonia.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard