Lagos-Based Cascador Partners Sterling Bank To Provide $3 Million in Debt Funding To Oriki, 8 Others

• Out of eleven African startups that shut down due to financial challenges in 2024, six of them were Nigerian
• A mid-stage business accelerator has partnered with Sterling Bank to provide nine startups with $3 million in funding and mentorship
• The funding comes with flexible terms, and the founders get access to capacity-building programmes from the accelerator

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

Nine Nigerian startups have been awarded over $3 million in debt funding by Cascador, a Lagos-based accelerator, to help scale their operations for global competitiveness.

The nine beneficiaries include Oriki, Crop2Cash, N.E.A.T, Sycamore, Adunni Organics and Drive 45. The others are DoChase, 24Seven and ExCare.

The beneficiaries received the funding at the close of the Cascador’s inaugural Pitch Day event held in Lagos on Wednesday.

Cascador awards $3 million in debt funding

Speaking about the initiative, the Chief Executive Officer of Cascador, Trish Thomas, said the funding was meant for alumni of the Cascador programme, which includes about 60 businesses that have been trained since inception in 2019.

The CEO noted that the funding is tailored to each business’s needs, explaining,

“The nine finalists that you see today have been awarded over $3m in debt and equity capital. We do not follow a traditional venture capital model. Some of them are looking at scaling up with sustainable growth, and what they need is working capital, not equity.”

Thomas noted that about three-quarters of the applicants indicated interest in debt funding, hence the decision to partner with Sterling Bank and offer them the best terms, the PUNCH reports.

Her words;

“We are partnering with Sterling Bank. We are taking on the collateral requirements, pulling down interest rates, and breaking down lending barriers.”

The businesses, mostly range from manufacturing to agriculture, and will get loans at about 20% interest rates, with flexible terms offering moratoriums and repayment tenures of up to five years.

Sterling Bank joins Cascador to fund nine startups

The Managing Director and Chief Executive Officer of Sterling Bank, Abubakar Suleiman, stated that the bank joined the partnership to help businesses become bankable and commercially viable. He said;

“Between that energy and becoming a successful business, there are a lot of ravines and obstacles. What capital tries to do is remove some of those obstacles."

Cascador to provide mentorship to the startups

In addition to funding, Cascador will provide mentorship and capacity building to ensure sustainable growth.

Founder of Cascador, Dave Delucia said in his remarks that Cascador would ensure that they make efficient use of the capital.

Recall that about six Nigerian startups shut down in 2024 due to financial challenges, despite raising millions of dollars in funding.

The mentorship and capacity development are to ensure that these businesses survive and thrive.

Applications for the 2025 Cohort of the Cascador Accelerator programme have since opened.

Crop2Cash wins $20,000 in AYuTe Africa Challenge

Three Nigerian startups were recently recognised and rewarded with $40,000 for their innovative agricultural solutions in the AYuTe Africa Challenge.

Seyi Alabi of Crop2Cash took home the $20,000 grand prize, while Grabb247 and Erido Agro won $20,000 combined as second and third position.

Cascador partners Sterling Bank for $2 million Catalytic fund

Legit.ng earlier reported that Cascador partnered Sterling Bank to launch a $2 million catalytic fund.

According to the founder, the goal was to unlock growth for mid-stage businesses across key sectors like agriculture and manufacturing.

Delucia pointed out that there would be a pitch, after which the winners would be selected.

Source: Legit.ng