Nigeria's startup ecosystem demonstrated remarkable resilience in the first quarter of 2025, securing over $100 million in disclosed funding despite a challenging global economic environment, according to data from Nairametrics Dealsbook. This funding milestone is noteworthy amid ongoing macroeconomic volatility, tightening global capital markets, and protectionist trade policies from developed economies.
Context: A Challenging Global and Local Landscape
Global markets remain cautious due to the ripple effects of recent geopolitical tensions, including the return of former U.S. President Donald Trump and his tariff threats, which have unsettled investors and disrupted flows into emerging markets. In Nigeria, the macroeconomic climate has been further strained by inflation, high interest rates, currency volatility, subsidy removals, and FX reforms—factors that traditionally hinder startup fundraising. Despite these headwinds, Nigerian founders continue to rise against the odds, driven by investor confidence in sectors deemed critical and scalable.
Key Drivers of Investment
Investors have shown particular interest in sectors that address Nigeria’s infrastructural and economic challenges. The dominant sector remains fintech, especially in payments, remittance, and embedded finance. Additionally, there has been notable activity in HR tech, clean energy, and agritech, reflecting investor appetite for solutions to vital community and enterprise needs across Nigeria and the continent.
Funding in Q1 was primarily directed towards three strategic goals:
- Product expansion and regional growth, including entry into other African and Asian markets.
- Credit and liquidity provisioning, specifically targeting underbanked populations and SMEs.
- Infrastructure and asset financing, especially within clean energy and agritech.
A variety of financing structures were employed, including equity and debt. Notably, startups like Mansa and Rivy leveraged debt to manage working capital and scale their lending portfolios—signs of a maturing ecosystem where innovative capital structuring is increasingly common.
Top Investors and Deal Highlights
Major global investors such as Visa, Highland Europe, and QED Investors participated alongside prominent African-focused venture firms like Ventures Platform, EchoVC, and All On. Their involvement underscores a renewed confidence in Nigeria’s entrepreneurial potential despite macroeconomic headwinds.
Below is a list of Nigeria’s top 10 startup fundraises in Q1 2025, according to Nairametrics Dealsbook:
Nigeria’s Top 10 Startup Fundraisers in Q1 2025
10. Agriarche — $0.5 million (Debt Financing)
Agritech company Agriarche obtained debt funding from Sahel Capital to expand its logistics and storage facilities, supporting the upcoming planting season.
9. SunFi — $1 million (Venture Round)
SunFi, a clean energy platform providing solar solutions to underserved communities, closed a funding round led by Ventures Platform, Delta40, and Kaleo Ventures.
8. Accrue — $1.58 million (Seed Round)
Fintech startup Accrue secured seed funding to develop its crypto-linked payments infrastructure, with investors including Lattice Fund and Lava.
7. Rivy (formerly PayHippo) — $4 million (Pre-Series A)
Pivoting toward clean energy financing for SMEs, Rivy raised $2 million in equity from EchoVC and Shell’s All On, plus $2 million in debt. The funds will fuel market expansion.
6. Mansa — $3 million (Seed Round)
Mansa raised a $3 million seed round to support product development and market entry, with participation from Tether and Faculty Group.
5. Mansa — $7 million (Debt Funding)
Later in the quarter, Mansa secured a $7 million debt round to bolster liquidity and credit management, reflecting strong investor confidence in revenue-backed financing models.
4. SeamlessHR — $9 million (Series A Extension)
The HR tech firm secured an extension of its Series A round, backed by Gates Foundation and Helios Ventures, to enhance payroll, compliance, and workforce analytics.
3. Moniepoint (TeamApt) — $10 million (Strategic Investment)
Visa invested an additional $10 million in Moniepoint, building on its previous Series C funding, to deepen financial inclusion initiatives and expand product offerings.
2. Raenest — $11 million (Series A Extension)
Raenest, enabling cross-border payments for remote African workers, closed a $11 million extension led by QED Investors, boosting expansion plans across Africa.
1. LemFi — $53 million (Series B)
Leading the quarter’s funding, LemFi, a remittance platform serving diaspora communities, raised $53 million led by Highland Europe. The company’s total funding leading the quarter’s funding, LemFi, a remittance platform serving diaspora communities, raised $53 million led by Highland Europe. This Series B brings LemFi’s total funding to approximately $85 million, and the platform has crossed $1 billion in monthly transaction volumes. LemFi facilitates cross-border payments for users across North America, Europe, Nigeria, Pakistan, Kenya, and increasingly in Asia, reflecting its rapid expansion and investor confidence.
Sector Trends and Investor Sentiment
Fintech remains the dominant sector, accounting for over 70% of disclosed deal value. The sector's focus continues to be on cross-border payments, SME banking, and remote work solutions, confirming its central role in Nigeria’s digital economy.
Meanwhile, clean energy and climate-focused startups like Rivy and SunFi are gaining momentum, attracting both equity and debt funding. Their growth signals a broader shift towards sustainable infrastructure financing and green solutions in Africa.
The involvement of notable international investors such as Visa, Y Combinator, and the Gates Foundation underscores a strong global belief in Nigeria’s startup ecosystem, despite macroeconomic challenges like FX shortages and inflation. Additionally, debt funding—amounting to at least $9.5 million—is increasingly prominent, indicating maturity in financial structuring and investor confidence.
Outlook for Q2 and Beyond
As macroeconomic conditions stabilize with the Central Bank’s efforts towards monetary policy stability, Nigeria’s startup ecosystem is poised for more mega-deals in the second quarter, particularly in growth-stage fintech, climate tech, and emerging AI-driven platforms. With continued investor optimism, Nigerian startups are well-positioned to scale further and address Africa’s critical infrastructure and financial inclusion needs.
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