Nigerian startup GetEquity has achieved profitability after shifting its focus from private equity to debt investments and commercial papers, and laying off 40% of its workforce in 2024. The company's CEO, Jude Dike, confirmed that GetEquity is now able to pay its team and sustain its business without relying on outside capital.

GetEquity initially launched in 2021 with the goal of enabling retail investors to own stakes in startups and participate in Africa's venture funding boom. However, as investor appetite for early-stage equity cooled, the company adapted by partnering with asset managers to offer commercial papers and debt notes to retail investors. This strategic pivot has proven successful, with GetEquity processing over ₦500 million ($310,000) in debt investments and growing 10% monthly.

The company's first commercial paper offering, in partnership with ARM, was for the Dangote Group, and it exceeded expectations, with ₦27 million pledged within three days. This success validated GetEquity's thesis that Nigerians are willing to invest in low-risk, local debt instruments. The startup has since expanded its revenue streams to include transaction fees, commissions from asset managers, and a secondary market infrastructure for users to buy and sell their investments.

In addition to its debt investment offerings, GetEquity is also working on a credit-linked investment product, which would allow users to access loans backed by their previous investments. The company is in talks with financial partners to roll out this product, which would open up new revenue streams. Furthermore, GetEquity is seeking Approval-in-Principle from Nigeria's Securities and Exchange Commission (SEC) for digital asset issuance and trading, which would enable it to digitize and distribute commercial papers and debt notes.

The company's path to profitability has not been without challenges. In 2023, GetEquity faced a police complaint from Peppa, a startup that offered escrow services for online shoppers, after GetEquity reneged on a payment plan. However, Dike attributed the issue to Nigeria's FX instability, which affected the company's ability to process FX-based transactions. This experience led GetEquity to shift its focus to Naira-based investments, reducing its exposure to currency conversion risks.

GetEquity's profitability has also changed its expansion strategy. The company initially planned to expand into Kenya but has shelved those plans in favor of deepening its debt product and incentivizing customers to refer other customers. Dike emphasized the importance of building brand-driven, organic growth, rather than pursuing aggressive expansion, which often leads to high churn in African markets.

Looking ahead, GetEquity aims to achieve $1 million in annual recurring revenue and launch business accounts to help fintechs and neobanks run treasury operations. The company's next step is to build a product similar to what Cowrywise and Piggy do with products for fixed-income assets. With its newfound profitability, GetEquity is well-positioned to continue innovating and expanding its offerings in the Nigerian market.