Village Capital has invested $450,000 in two Nigerian startups through its Africa Ecosystem Catalysts Facility, providing fresh capital to businesses working to improve access to finance for small businesses and develop climate-focused agricultural solutions.
The investment marks the facility’s entry into Nigeria after it backed two Ghanaian companies earlier this year. The latest investments bring the facility’s portfolio to seven startups across Ghana and Nigeria, with further investments planned in Nigeria and Tanzania.
The Nigerian companies receiving the funding are Trade Lenda, a digital financial services platform serving small and medium-sized businesses, and AirSmat, a climate-tech company that converts agricultural waste into biochar-based fertiliser.
The investment comes at a difficult time for African startups, particularly those at the early stage. In the first half of 2026, African startups raised $9 million in early-stage funding, compared with $25 million during the same period in 2025. Village Capital’s approach is intended to help close part of this funding gap by finding promising businesses through organisations that understand local markets and the challenges faced by founders.
“What stands out about these startups is how they’re strengthening the systems that businesses and farmers rely on to grow,” said Husein Merchant, Investment Officer at Village Capital.
Capital to Expand Finance and Climate Solutions
For Trade Lenda, the investment is expected to strengthen its ability to provide financing to small businesses and farmers. The company offers digital business loans, embedded finance and Sharia-compliant financing and says it has supported more than 260,000 SMEs and farmers across five of Nigeria’s six geopolitical zones. Women make up 66% of its customers.
Adeshina Adewumi, co-founder and CEO of Trade Lenda, said the capital has allowed the company to accelerate its growth, secure a higher licence and attract more competitive funding. The investment also helped Trade Lenda secure an additional $2 million in local debt facilities at lower rates, enabling it to increase lending while reducing its cost of capital.
AirSmat is directing its investment towards completing and commissioning a commercial factory for its biochar-based fertiliser and increasing production. Its technology converts agricultural waste into biochar, which can improve soil health, remove carbon and create additional 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 of the company.
The potential impact extends beyond the two businesses. By supporting companies that provide finance to SMEs and farmers while also investing in agricultural climate solutions, the facility is backing businesses that can contribute to economic activity, job creation, stronger farming systems and greater climate resilience.
Local Partners at the Centre of the Investment Model
The $4 million Africa Ecosystem Catalysts Facility was launched by Village Capital in July 2025 with support from the Dutch Entrepreneurial Development Bank (FMO) and the Netherlands Enterprise Agency (RVO). It focuses on early-stage businesses working in economic mobility and climate resilience.
In Nigeria, Africa Fintech Foundry helped identify Trade Lenda and AirSmat. The organisation provides local market knowledge and works with Village Capital to identify founders with strong potential.
Carolina Gideon-Krama, venture analyst at Africa Fintech Foundry, said the organisation’s position within Nigeria’s startup ecosystem allows it to identify promising founders before they become visible to traditional investors.
The model gives local Entrepreneur Support Organisations a central role in identifying businesses and helping investors understand the markets in which they operate. It was also used for the facility’s first investments in Ghana, where Village Capital invested $200,000 in Rivia Clinics and $150,000 in VDL Fulfilment in May.
With seven startups now backed across Ghana and Nigeria, Village Capital plans to continue deploying capital in African markets, with Nigeria and Tanzania among the countries expected to receive further investment.
