Startups in Nigeria raised over $100 million in disclosed funding in the first quarter of 2025, according to data tracked by the Nairametrics Dealsbook.
This performance stands out against a backdrop of global capital tightening, Africa’s macroeconomic volatility, and renewed trade protectionism led by developed economies.
The first quarter of the year was anything but smooth. Global capital markets were still adjusting to the ripple effects of former U.S. President Donald Trump’s return and his revived tariff threats, which have spooked investors and disrupted emerging market flows.
In Africa, Nigeria, in particular, continued to grapple with inflationary pressures, high interest rates, currency volatility, and the lingering effects of subsidy removals and FX reforms. These headwinds typically make fundraising harder for startups. Yet, Nigerian founders have continued to defy the odds.
What’s driving this resilience? Investors are doubling down on sectors they perceive as essential and scalable in Nigeria’s difficult macro environment. Fintechs dominated funding, accounting for the bulk of the capital raised, especially in the payments, remittance, and embedded finance segments.
But the quarter also saw notable activity in HR tech, clean energy, and agritech, reflecting investor interest in technology that solves critical infrastructure and productivity problems across the continent.
- Capital raised this quarter was largely earmarked for three strategic uses:
- Product expansion and regional growth, particularly into other African and Asian markets.
- Credit and liquidity provision, especially in fintechs targeting underbanked populations and SMEs.
- Infrastructure and asset financing, notably in clean energy and agritech.
Notably, a mix of equity and debt funding was utilized. Some startups like Mansa and Rivy leveraged debt to manage working capital or expand lending books, signaling a maturing ecosystem where founders are thinking more creatively about capital structuring.
Top investors included global names like Visa, Highland Europe, and QED Investors, as well as African-focused players like Ventures Platform, EchoVC, and All On.
Below is a list of the top 10 disclosed startup fundraises in Nigeria for Q1 2025, according to Nairametrics Dealsbook:
Nigerian startups in Q1 2025 demonstrated remarkable resilience, securing over $100 million in disclosed funding despite prevailing macroeconomic challenges. Fintechs emerged as the clear frontrunners, dominating the top ten deals and underscoring the sector’s immense potential for growth and innovation in the Nigerian market.
A breakdown of the top ten deals reveals sustained investor confidence in key sectors such as cross-border payments, HR tech, clean energy, and agritech solutions.
According to data compiled by Nairametrics, the top three recipients – LemFi, Raenest, and Moniepoint – collectively accounted for over 70% of the total disclosed capital raised in Q1.
The $100 million milestone achieved in Q1 2025 is a testament to the growing maturity of Nigeria’s startup ecosystem and its ability to attract international capital. As investors continue to bet on Nigerian innovation, it will be crucial to monitor how these funded companies perform in the coming quarters and whether new sectors will emerge as attractive investment opportunities.
Nigeria’s top 10 startup fundraisers
10. Agriarche — $0.5 million (Debt Funding)
Agritech firm Agriarche raised $500,000 in debt financing from Sahel Capital to scale agricultural logistics and expand its storage network. The February deal supports working capital needs for the upcoming planting season.
9. SunFi — $1 million (Venture Round)
Clean energy platform SunFi closed a $1 million venture round in March. Investors included Ventures Platform, Delta40, and Kaleo Ventures. SunFi finances solar installations for underserved households and small businesses, contributing to off-grid energy access.
8. Accrue — $1.58 million (Seed Round)
Fintech startup Accrue raised $1.58 million in a seed round led by Lattice Fund, with participation from Kraynos Capital, Distributed Capital, Lava, and Maven 11. The company will channel the funds into expanding its crypto-linked payments infrastructure and scaling operations.
7. Rivy (formerly PayHippo) — $4 million (Pre-Series A)
After rebranding from PayHippo, Rivy raised $4 million to pivot toward clean energy financing for SMEs. The round was split between $2 million equity (co-led by EchoVC and Shell’s All On) and $2 million debt from Nigerian lenders.
The funding will support Rivy’s expansion into new markets and scale its asset-backed lending for renewable energy solutions.
6. Mansa — $3 million (Seed Round)
Separately, in the same month, Mansa raised $3 million in seed equity from Tether, Faculty Group, and other investors. The funds are earmarked for product development and market penetration.
5. Mansa — $7 million (Debt Funding)
Fintech platform Mansa closed a $7 million debt round in February to finance liquidity needs and manage credit exposure. The deal, from undisclosed institutional investors, reflects growing interest in revenue-backed or asset-based lending to African fintechs.
4. SeamlessHR — $9 million (Series A Extension)
Enterprise HR tech company SeamlessHR secured a $9 million Series A extension round backed by the Bill & Melinda Gates Foundation and Helios Ventures.
The round, completed in January, will be used to enhance payroll automation, compliance tracking, and workforce analytics for African enterprises.
3. Moniepoint (TeamApt) — $10 million (Strategic Investment)
Moniepoint received a $10 million strategic investment from Visa in January 2025, adding to the $110 million Series C round closed in October 2024. The fresh capital positions Moniepoint’s total Series C raised above $120 million, cementing its unicorn status. Both firms intend to deepen financial inclusion for Nigeria’s SMEs and explore product synergies across digital payments and lending.
2. Raenest — $11 million (Series A Extension)
Fintech startup Raenest, which enables payments for remote African workers, raised $11 million in a Series A extension round led by QED Investors. The February deal also saw participation from Norrsken22, Ventures Platform, P1 Ventures, and Seedstars.
The round brings Raenest’s total funding to $14.3 million, with proceeds targeted at expansion into new African markets and strengthening its compliance and treasury infrastructure.
1. LemFi — $53 million (Series B)
Remittance platform LemFi secured the largest round of the quarter with a $53 million Series B led by London-based Highland Europe. Other participants included Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator.
This round, announced on January 14, 2025, brings the company’s total funding to $85 million. LemFi, which facilitates cross-border payments for diaspora communities, has crossed $1 billion in monthly transaction volumes, serving users across North America, Europe, and emerging markets such as Nigeria, Pakistan, and Kenya. The firm is also expanding aggressively into Asia.
Sector Trends: Fintech dominates, clean energy gains momentum
Fintech remained the most active sector in Q1, accounting for over 70% of disclosed deal value, driven by continued investor interest in cross-border payments, SME banking, and remote work infrastructure.
Clean energy and climate-focused startups like Rivy and SunFi are beginning to attract both equity and debt funding, indicating a broader shift toward sustainable infrastructure financing. Similarly, Agriarche’s funding reflects an increased appetite for agritech ventures focused on logistics and food security.
Investor Sentiment: global names signal long-term connfidence
The involvement of global backers such as Visa, QED Investors, Y Combinator, and the Gates Foundation points to renewed confidence in Nigeria’s startup ecosystem despite FX challenges and inflationary pressure. Debt funding also gained traction, with at least $9.5 million of the total funding raised via debt instruments.
As macroeconomic conditions improve and with the Central Bank’s commitment to monetary stability, Q2 may see more mega-deals, particularly in growth-stage fintech, climate tech, and AI-enabled platforms.
