Why African Proptech needs to build infrastructure first before innovation
- Nigerian proptech startups attempted to disrupt the annual rent tradition by offering monthly payments.
- Many startups failed because they misunderstood landlords' need for certainty over liquidity.
- The acquisition cost per tenant exceeded their lifetime value due to inflation and rising default rates.
The challenges faced by Nigerian proptech startups highlight the importance of understanding the underlying dynamics of the rental market. While innovation is necessary, it must be grounded in the realities of landlord-tenant relationships and the economic environment. A focus on building trust and ensuring affordability could pave the way for more sustainable solutions in the rental sector.
