Village Capital invests $450,000 in two Nigerian startups

Village Capital has invested $450,000 in two Nigerian startups through its Africa Ecosystem Catalysts Facility. The investment is the facility’s first in Nigeria. The two companies are Trade Lenda, a financial services company for small and medium sized businesses, and AirSmat, a climate tech company that turns agricultural waste into biochar-based fertiliser. The investments bring the facility’s portfolio to seven startups across Nigeria and Ghana. Village Capital launched the $4 million facility in July 2025 with backing from the Dutch Entrepreneurial Development Bank (FMO) and the Netherlands Enterprise Agency (RVO). The facility provides funding to early-stage companies working in economic mobility and climate resilience. Village Capital works with local organisations to find companies and founders in each market.

Trade Lenda gets more capital for lending

Trade Lenda provides digital business loans, embedded finance and Sharia-compliant financing. The company 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. Trade Lenda said the investment has helped it grow and secure a higher licence. It also said the funding helped it secure another $2 million in local debt facilities at lower rates.

 That gives the company more money to lend to its customers. It also lowers the cost of the money Trade Lenda uses to provide those loans. For small businesses, access to credit can be difficult. Banks may ask for collateral or financial records that younger companies do not have. Some businesses also need funding before they get paid by their customers. They may need money to buy stock, pay suppliers or cover operating costs. Trade Lenda provides financing for some of these needs. “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 of Trade Lenda.

AirSmat is building a commercial factory

AirSmat is using its investment to expand its production capacity. The company turns agricultural waste into biochar-based fertiliser. It plans to use the money to complete and commission a commercial factory. It also plans to increase production once the factory is running. AirSmat's process gives agricultural waste another use. The company says its biochar can improve soil health. It is also looking at carbon markets as a possible source of additional income for farmers. The investment will help AirSmat cover the costs involved in getting its commercial operation running. That includes completing the factory and putting the required production equipment in place. “Soji Sanyaolu, AirSmat's founder and CEO, said the funding gives the company capital suited to the realities of building a climate-tech business.

Village Capital is using local partners

Africa Fintech Foundry (AFF) helped Village Capital identify the two Nigerian startups. AFF is one of the local Entrepreneur Support Organisations working with Village Capital under the facility. These organisations already have relationships with founders in their markets. They also understand the local businesses and challenges facing startups. That gives Village Capital another way to find companies outside the usual investor networks. Carolina Gideon-Krama, a venture analyst at AFF, said the organisation can identify founders before they attract the attention of traditional investors. The same model was used for the facility's first investments in Ghana.

Early-stage funding has dropped

The Nigerian investments come as African startups face a tougher funding market. African startups raised $9 million in early stage funding during the first half of 2026. That was down from $25 million during the same period in 2025, according to TechCabal's State of Tech in Africa report. For early stage companies, fewer investment dollars means more competition for funding. It can also make it harder for startups to raise the money needed to hire staff, develop products or increase production. Trade Lenda and AirSmat need capital for different reasons. Trade Lenda needs money it can turn into loans for businesses. AirSmat needs money to build and operate its production facility.

The facility started in Ghana

Nigeria is the second market where Village Capital has invested through the Africa Ecosystem Catalysts Facility. Earlier this year, it invested $350,000 in two Ghanaian startups. Rivia Clinics, a technology enabled primary healthcare company, received $200,000. VDL Fulfilment, an e-commerce logistics company, received $150,000. The latest investments bring the facility's portfolio to seven startups across Ghana and Nigeria. Village Capital plans to make more investments in Nigeria and Tanzania. The organisation is using local partners to help find companies in these markets rather than relying only on its own investment team.

What happens next

Trade Lenda now has more capital available for lending. It has also secured an additional $2 million in local debt. Its next challenge will be growing its loan book while keeping defaults under control. AirSmat has a different task. It needs to finish its commercial factory and increase production. The $450,000 will help both companies with immediate funding needs, but the next stage will depend on how they use the money. For Trade Lenda, that means turning more capital into loans for businesses. For AirSmat, it means getting the factory running and finding customers for its products. Village Capital's next investments will add more companies to the facility's portfolio as it continues its work in Nigeria, Tanzania and other African markets.