After $11.75m 8VC round, Terra closes $22m extension to expand into Sahel security markets

Just weeks after announcing an $11.75 million fundraise led by Joe Lonsdale’s 8VC, Nigerian defensetech startup Terra Industries has secured an additional $22 million in what executives describe as a fast-tracked extension round aimed at accelerating its expansion into security-fragile markets across the Sahel.

The new capital, led by Lux Capital, lifts Terra’s total funding to $34 million. Existing backers, including 8VC, Nova Global and Resilience17 Capital, founded by Olugbenga Agboola of Flutterwave, doubled down in the round, which closed in under two weeks.

Read more:Terra Industries to African startups: Build revenue before chasing valuation

Nathan Nwachuku, chief executive said investor interest intensified as the company recorded faster-than-anticipated traction with both public- and private-sector clients. There was urgency, he noted, pointing to growing demand from countries facing mounting threats to critical infrastructure.

Focus on the Sahel’s security pressure points

Stretching across parts of West and Central Africa, the Sahel has in recent years become one of the continent’s most volatile security corridors. Armed insurgencies, cross-border militancy and infrastructure sabotage have strained national budgets and weakened investor confidence.

Read more: What’s next for Terra Industries after $11.75m seed raise

Terra, founded in 2024 by 22-year-old Nwachuku and 24-year-old Maxwell Maduka, is betting that African-built autonomous surveillance and monitoring systems can help fill what many policymakers see as a capability gap. Much of the high-grade security intelligence and hardware deployed across the region has historically been sourced from Russia, China or Western defense contractors.

The startup’s pitch is straightforward: design and deploy systems locally, adapted to African terrain and threat patterns, while reducing long-term reliance on foreign suppliers.

“Our priority is working with countries where terrorism and infrastructure security are major national concerns,” Nwachuku said, singling out sub-Saharan Africa and the broader Sahel belt as immediate targets for expansion.

Momentum from early contracts

The funding extension follows a period of operational growth. Terra recently secured its first federal contract and has since added a mix of government and commercial clients. According to the company, it has generated more than $2.5 million in commercial revenue so far and is currently protecting assets valued at roughly $11 billion.

While it has yet to publicly name several of the new government engagements, executives say discussions are underway in multiple African markets, with announcements expected later this year.

Industry observers note that defense technology is capital intensive by nature. U.S.-based firms such as Anduril and Shield AI have raised billions collectively to scale their platforms. By comparison, Terra’s $34 million remains modest, but significant within the African context.

Read more: Terra industries raises $11.8m led by 8VC to power homegrown African defense tech

Manufacturing footprint expands

Part of Terra’s strategy involves building out manufacturing capability closer to its emerging markets. Through a partnership with AIC Steel, the company plans to establish a joint facility in Saudi Arabia focused on producing surveillance infrastructure and related security systems, its first major production expansion outside Africa.

Nwachuku described the move as a way to shorten supply chains while keeping Africa at the centre of product design and deployment.

For now, the company’s expansion blueprint is selective rather than sweeping. “We are targeting major economies where the need for infrastructure security is urgent and where our systems can make a measurable impact,” he said.

With fresh capital secured and new markets in sight, Terra is positioning itself at the intersection of venture funding and national security, wagering that demand for homegrown defense infrastructure across the Sahel will only intensify in the years ahead.

Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.

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