Two Nigerian startups, Trade Lenda and AirSmat, have secured a combined $450,000 investment from the Africa Ecosystem Catalysts Facility, marking the facility’s first investments in Nigeria and providing fresh capital for businesses operating in financial technology and climate focused agriculture. The facility, managed by Village Capital, is a $4 million investment programme backed by the Dutch Entrepreneurial Development Bank and the Netherlands Enterprise Agency.
Trade Lenda, a digital financial services company, provides business loans, embedded finance and Sharia compliant financing products to small businesses and farmers. The company said it has supported more than 260,000 small and medium sized enterprises and farmers across five of Nigeria’s six geopolitical zones, with women accounting for 66 per cent of its customers. Its co founder and Chief Executive Officer, Adeshina Adewumi, said the investment had helped the company secure a higher operating licence and an additional $2 million in local debt facilities at lower interest rates.
AirSmat, the second beneficiary, is a climate technology company that converts agricultural waste into biochar based fertiliser designed to improve soil health while supporting carbon removal and additional income opportunities for farmers. Founder and Chief Executive Officer, Soji Sanyaolu, said the funding would be used to complete and commission the company’s commercial biochar fertiliser factory, increase manufacturing capacity, expand market access and scale the delivery of climate smart agricultural solutions.
The latest investments bring the Africa Ecosystem Catalysts Facility’s portfolio to seven startups across Nigeria and Ghana, with further investments planned in Nigeria and Tanzania. Village Capital said the two Nigerian companies stood out because of their potential to strengthen systems supporting businesses and farmers, while the investments also demonstrate the continued availability of early stage international capital for Nigerian startups despite the challenging funding environment facing African technology companies.