Nigerian startups Trade Lenda and AirSmat have raised a combined US$450,000 from the Africa Ecosystem Catalysts Facility, a US$4 million pilot investment facility aimed at identifying founders often overlooked by traditional investors, which is making its first investments in the country.
Managed by Village Capital with funding from the Dutch Entrepreneurial Development Bank (FMO) and the Netherlands Enterprise Agency (RVO), the Africa Ecosystem Catalysts Facility aims to provide early-stage capital for startups in Ghana, Nigeria, and Tanzania that are advancing climate resilience and economic mobility. The facility runs a locally-led investment model, partnering with in-market entrepreneur support organisations (ESOs) that help identify strong founder teams, shape investment pipelines, and advise on due diligence. Its first investments in Nigeria bring its total to seven, after backing five startups in Ghana previously.
The first investment is in Trade Lenda, a digital financial services platform expanding access to finance for small and medium-sized enterprises through digital business loans, embedded finance solutions, and Sharia-compliant financing products. Since its launch, the startup has supported more than 260,000 SMEs and farmers across five of Nigeria’s six geopolitical zones, with 66% of its customers women. “The capital has enabled us to accelerate our growth, acquire a higher license, and attract more competitive funding,” said Adeshina Adewumi, co-founder and CEO at Trade Lenda. “Following the investment, we secured an additional US$2 million in local debt facilities at lower rates, allowing us to expand lending while reducing our cost of capital. As we continue to secure more affordable financing, we’re able to pass those savings on to the SMEs and entrepreneurs we serve across Nigeria and Africa.”
The second investment is in AirSmat, a climate technology company transforming agricultural waste into biochar-based fertiliser. Its solution removes carbon while improving soil health, increasing agricultural productivity, and creating new income opportunities for farmers through carbon markets. “Access to capital structured around the realities of building a climate-tech company has been transformative for AirSmat,” said Soji Sanyaolu, founder and CEO at AirSmat. “The investment will be used to complete and commission our commercial biochar-based fertiliser factory, and scale our commercial operations. It will also strengthen our manufacturing capacity, expand market access, and accelerate the delivery of climate-smart agricultural solutions that improve soil health, increase farmer productivity, and create sustainable livelihoods.”
Husein Merchant, investment officer at Village Capital, said what made these two startups stand out about these startups was how they are strengthening the systems that businesses and farmers rely on to grow. “Trade Lenda is expanding access to finance for hundreds of thousands of SMEs and farmers, while AirSmat is transforming agricultural waste into productive inputs that strengthen food systems and improve farmer livelihoods. Both companies are deeply rooted in the realities of their markets, and our role is to make sure they have access to the right capital to grow their impact,” he said.
Africa Fintech Foundry was among the local players that played a key role in sourcing the facility’s first investments in Nigeria, leveraging its local market expertise and founder network to identify high-potential startups for investments. “We don’t often see investors partnering so intentionally with local ecosystem organisations, and that’s what makes this facility different,” said Carolina Gideon-Krama, venture analyst at Africa Fintech Foundry. “Because we’re deeply embedded in Nigeria’s startup ecosystem, we’re able to identify founders with strong potential long before they’re on the radar of traditional investors. We’re proud to have worked with Village Capital to identify both Trade Lenda and AirSmat for investment and to help connect them with financing designed for their stage of growth.”