The chief executive of Mainstack, Ayobami Oyaleke, has called on Nigeria’s startup community to judge success by revenue, customer retention and long-term sustainability instead of funding volumes. He argued that rising investment totals do not prove a healthy ecosystem, and falling totals do not prove failure. His remarks come as Nigerian startups face a tougher equity market.
Read also: Mastercard CEO visits Tinubu, pledges to empower 40 million Nigerian SMEs with digital tools
A mixed funding picture
Partech’s 2025 report shows that African tech companies raised $4.1 billion last year, up 25 per cent from 2024. Much of the rise came from debt financing and larger deals. Nigeria raised $412 million in equity across 83 deals, a 21 per cent fall in value and a 19 per cent drop in deal count. Nigeria still ranked as Africa’s second-largest market by equity deal count.
TechCabal Insights data show that debt made up 41 per cent of African startup funding in the first half of 2026. Early-stage startups attracted $9 million, down from $25 million a year earlier. Oyaleke said a continental rebound and a tougher Nigerian market can both be true.
Read also: NEPC CEO highlights role of women entrepreneurs in Nigeria’s SMEs
Proof that investors want
Oyaleke said founders must show credible evidence of demand: paying customers, repeat usage, revenue and the cost of serving each customer. He stressed that transaction volume is not the same as revenue. He drew on Mainstack’s own path. The company began by helping users receive and convert cross-border payments. It then added storefronts, digital products, bookings, communities and customer follow-up tools as its customers asked for them. Its fourth major product version launched in 2026.
Caution on debt
Oyaleke said debt can finance working capital and assets without diluting ownership, especially where revenue is predictable and the purpose of the loan is clear. He warned that borrowing becomes dangerous when revenue is unstable, when repayment currency differs from earnings, or when loans prop up business models that have not yet proved viable.
Read also: Flutterwave hosts Africa Forward forum, stablecoins and cross-border payments take centre stage
Calls to investors and regulators
He urged investors to make their processes more consistent, share due diligence where appropriate and give feedback to rejected founders. He warned that waiting for scale before investing weakens the pipeline of new businesses. He also asked regulators for clarity, lower compliance costs, shared infrastructure and easier cross-border transactions. He saw opportunity beyond fintech, which took 56 per cent of Nigerian equity funding in 2025, in e-commerce, logistics and the creator economy.
For SME owners, the message is practical. Capital follows proof of paying customers, and the right funding instrument depends on cash flow. Founders who track revenue and repayment risk early will stand in a stronger position when investors return to early-stage deals.
