Quick Sumary: Against global economic headwinds, Nigerian startups defied the odds, securing over $100 million in Q1 2025. Fintech led the charge, but clean energy and agritech also saw major wins. Here’s a breakdown of the top 10 deals and what they signal for the startup ecosystem.
Nigeria’s Startup Sector Surges Past $100M in Q1 2025 Despite Global Challenges
Strong Start Amid Global Uncertainty Nigerian startups secured more than $100 million in announced funding during the first quarter of 2025, according to figures from the Nairametrics Dealsbook. This achievement comes against a backdrop of global economic tightening, regional financial instability, and increasing trade barriers led by major world powers.
Riding Out the Storm Q1 was far from stable. Worldwide markets were still responding to the aftermath of former U.S. President Donald Trump’s political comeback and renewed tariff threats. These developments rattled investor confidence and interrupted capital flow to emerging economies. Within Nigeria, persistent inflation, high borrowing costs, volatile exchange rates, and ongoing effects of subsidy removals continued to affect the business climate. Despite these challenges, Nigerian entrepreneurs remained resourceful and determined.
What’s Fueling Investor Confidence? Investors appear to be focusing on essential services with potential for growth. Fintech startups led the pack, especially in payments, remittances, and integrated financial services. However, activity wasn’t limited to finance — companies in HR tech, renewable energy, and agricultural technology also gained traction, showing a growing interest in solving key infrastructure and efficiency challenges across Africa.
Capital Deployment Focus The funds raised during Q1 were mainly channeled into three critical areas:
- Expanding products and entering new regions, particularly within Africa and parts of Asia.
- Increasing access to credit and liquidity, especially for fintech firms targeting underserved populations.
- Developing infrastructure and financing assets, notably in clean energy and agricultural innovation.
Startups are also beginning to adopt a blend of equity and debt financing. Firms such as Mansa and Rivy utilized debt to support working capital and scale lending capacity — a sign of maturity in Nigeria’s startup ecosystem.
Key Investors and Backers Top investors during the quarter included global powerhouses like Visa, Highland Europe, and QED Investors, alongside Africa-focused firms such as Ventures Platform, EchoVC, and All On. Their involvement underlines international interest in Nigeria’s innovation landscape.
Nigeria’s Top 10 Startup Fundraises in Q1 2025 Here are the top 10 disclosed startup deals tracked by the Nairametrics Dealsbook:
10. Agriarche – $0.5M (Debt) Agriarche, an agricultural tech startup, raised $500,000 in debt from Sahel Capital to improve storage and logistics operations ahead of the planting season.
9. SunFi – $1M (Venture Round) Clean energy company SunFi secured $1 million from Ventures Platform, Delta40, and Kaleo Ventures to finance solar installations for off-grid households and SMEs.
8. Accrue – $1.58M (Seed) Accrue, a fintech startup focused on crypto-enabled payments, raised $1.58 million from Lattice Fund and other backers to scale its infrastructure.
7. Rivy – $4M (Pre-Series A) Rebranded from PayHippo, Rivy raised $4 million to shift toward clean energy financing for small businesses. The round included $2 million equity and $2 million debt.
6. Mansa – $3M (Seed) Mansa secured $3 million in seed funding from investors including Tether and Faculty Group to fuel product development and market growth.
5. Mansa – $7M (Debt) In a separate transaction, Mansa also raised $7 million in debt to enhance its lending capacity and manage liquidity needs.
4. SeamlessHR – $9M (Series A Extension) SeamlessHR, an enterprise software firm, received $9 million to boost payroll automation and HR analytics, backed by the Gates Foundation and Helios Ventures.
3. Moniepoint – $10M (Strategic Investment) Visa invested $10 million into Moniepoint, adding to its previous $110 million Series C round. The funding supports digital finance for SMEs.
2. Raenest – $11M (Series A Extension) Raenest, which powers remote payments for African workers, raised $11 million led by QED Investors to expand across the continent.
1. LemFi – $53M (Series B) LemFi closed the largest round of Q1 with $53 million led by Highland Europe. The remittance platform now handles over $1 billion in monthly transfers and is growing into Asia.
Fintech Still Leads, but Clean Energy Gathers Pace Fintech dominated Q1, accounting for over 70% of reported funding, with investors backing solutions in payments, lending, and digital infrastructure. Clean energy and agritech are gaining interest as investors diversify into sustainable development and food security.
Investor Optimism Remains Strong Participation from globally recognized firms like Visa, Y Combinator, and the Gates Foundation underscores enduring investor confidence. The rise in debt-based deals, totaling over $9.5 million, highlights a shift toward more flexible capital strategies.
With improving macroeconomic signals and a more stable monetary environment, Q2 2025 could deliver even larger investments — particularly in climate-focused technology, advanced fintech, and AI-driven platforms.
