Village Capital Backs Two Promising Nigerian Startups

Global nonprofit Village Capital has deployed $450,000 from its Africa Ecosystem Catalysts Facility into two Nigerian companies: Trade Lenda, a digital financial services platform for SMEs, and AirSmat, a climate-tech firm converting agricultural waste into biochar fertilizer. This marks the facility’s entry into Nigeria after previous investments in Ghana.

The $4 million facility, supported by FMO and RVO, focuses on early-stage companies driving economic mobility and climate resilience. The latest investments bring the total portfolio to seven startups across both countries. ## Addressing Funding Gap

These investments arrive amidst a challenging funding environment for African startups. Early-stage funding declined from $25 million in the first half of 2025 to just $9 million in the same period this year - a significant drop that Village Capital’s model aims to address. ## Impactful Solutions

Trade Lenda has already supported over 260,000 SMEs and farmers across Nigeria, with women comprising 66% of its customers. The capital infusion will enable the company to expand lending while reducing costs - having already secured an additional $2 million in local debt facilities.

AirSmat is using the investment to commission a commercial factory for its biochar fertilizer, creating income opportunities for farmers and removing carbon from the environment through sustainable agricultural practices. ## Local Expertise Drives Success

Village Capital partners with local organizations like Africa Fintech Foundry to identify high-potential startups. This approach leverages existing ecosystem relationships rather than relying solely on central investment teams - ensuring capital reaches founders who might otherwise be overlooked.