Mainstack CEO Says Nigeria Must Measure Startups by Revenue, Not Raise Rounds

Ayobami Oyaleke, chief executive of Mainstack, is calling for a shift in how Nigeria's startup ecosystem is judged, arguing that success should be measured by revenue generation, customer retention and long-term sustainability rather than the size of funding announcements.

"We should ask whether companies can serve customers, earn revenue, manage risk, and grow beyond the next round," Mr Oyaleke said. Rising investment figures do not necessarily indicate a healthy ecosystem, he argued, just as declining funding does not automatically mean the sector is failing.

The intervention comes amid mixed funding trends. Partech's 2025 African tech funding report showed continental technology companies raising $4.1 billion, up 25% year on year, but much of the increase came from debt and larger tickets. Nigerian startups raised $412 million in equity across 83 deals. TechCabal Insights' first-half 2026 recap put debt at 41% of African startup funding, while early-stage deals slumped to $9 million from $25 million a year earlier.

Proof of demand before capital

Oyaleke said founders seeking investment must show credible evidence of demand: paying customers, repeat usage, revenue performance and the true cost of delivery. "Sign-ups are not the same as recurring use. Transaction volume is not the same as revenue," he said. "An investor should be able to see who pays, why customers return, what it costs to serve them, and how new capital changes the business."

Mainstack, which began as a cross-border payments tool for creators and now bundles storefronts, bookings and digital products, launched version 4 in 2026. Oyaleke said the experience reinforced adapting products to customers rather than to investor fashion. The company's own shift from pure payments to a broader merchant stack mirrors the argument he is making about durable revenue.

A caution on debt

With debt playing a larger role in African startup financing, Oyaleke urged founders to match the instrument to the business. Borrowing can avoid dilution when revenue is predictable and the use of funds is defined, he said, but exposes young companies to pressure when earnings are unstable, repayments are in a different currency from revenue, or loans are propping up an unproven model.

He also pressed investors to make early-stage processes more consistent, share due diligence where appropriate and keep funding the pipeline before companies reach scale. Regulatory clarity, compliance costs and cross-border transaction constraints remain operating headwinds, he added.

Sector mix is part of the answer. Partech data put fintech at 56% of Nigerian equity funding and e-commerce at 20%, but Oyaleke pointed to opportunities where commerce platforms embed payments, creator businesses run subscriptions and logistics firms layer working-capital tools onto delivery. "The label matters less than the underlying economics," he said.

The underlying claim is simple: Nigeria does not need to choose between ambition and discipline. It needs capital that funds ambition, and founders who can prove what that capital will build.