Nigeria’s Tech Ecosystem Surges with $150M Funding Boost in May Alone

 

In a resounding vote of confidence for Nigeria’s innovation sector, local tech startups raised over $150 million in funding rounds during the month of May 2025, according to data compiled by TechTrack Africa.

The funding surge, which cuts across fintech, healthtech, edtech, and agri-tech startups, is one of the highest monthly hauls in recent years signaling renewed global investor interest despite macroeconomic headwinds in the country.

At the forefront is Moni, a digital cooperative financing startup, which secured $45 million in Series B funding led by Sequoia Capital and TLcom Capital. The funds will be used to expand its community-based lending infrastructure across West Africa and pilot operations in French-speaking markets.

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“We’re thrilled to back a solution that is deeply local yet globally scalable,” said Olumide Soyombo, General Partner at Voltron Capital.

Also making headlines is Helpa Health, a Lagos-based telemedicine platform that raised $32 million to upgrade its diagnostic AI tools and increase access to affordable virtual care in rural areas. Meanwhile, edtech leader U-Learn Africa closed a $25 million round to digitize secondary school curricula and teacher training programs in Nigeria and Ghana.

Notably, agritech startup FarmGrid raised $18 million to scale its AI-powered yield prediction software and satellite-backed farmland mapping systems tools aimed at helping smallholder farmers boost production.

“This is a sign that the world still believes in Nigeria’s digital economy,” said Fola Adebayo, an analyst at TechCrunch Africa. “Investors are no longer just betting on flashy apps they’re putting money into problem-solving innovation.”

The momentum is especially significant in light of the challenges Nigerian startups faced in 2023 and early 2024, including inflation, forex instability, and a wave of regulatory uncertainties that stalled many pre-seed and seed-stage rounds.

However, the Central Bank of Nigeria (CBN)’s recent reforms, including the lifting of restrictions on crypto-related businesses and the introduction of a Startup Equity Tax Holiday policy, have helped rekindle interest from both local and international investors.

Startups like PayGo, SmartFleet, and CareLoop also secured smaller funding rounds during the month, contributing to the sector’s total inflow.

“We’ve always had the talent. What we needed was policy stability and access to capital,” said Chinedu Ugwu, co-founder of SmartFleet. “Now we have both and we’re just getting started.”

With more Nigerian startups expected to close new rounds in June and July, experts say the sector could surpass $1 billion in total 2025 investment provided the government continues to create an enabling environment.

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