Nigeria’s Terra Industries has raised an additional $18 million, bringing its total seed financing to $52 million as the defence technology startup expands its manufacturing operations in Africa and establishes offices overseas.
Existing investors, including 8VC, Silent Ventures, Nova Global, Belief Capital and SV Angel, participated in the latest round alongside Norleo Space Investments.
The latest funding comes after an $11.75 million round led by 8VC in January and a $22 million extension led by Lux Capital in February. Following the February extension, Terra was valued in the nine-figure range, according to Chief Executive Officer Nathan Nwachuku. The company has not disclosed its valuation following the latest financing.
Terra was founded in 2024 by Nwachuku and Maxwell Maduka.
The company develops autonomous systems for governments, militaries and infrastructure operators. Its products include the Archer VTOL drone, Iroko quadcopter, Kallon sentry tower and Kama interceptor drone.
Terra says its systems currently protect about $11 billion worth of assets, including oil, mining and power infrastructure. The company also expects to record more than $100 million in contract bookings by the end of 2026.
A portion of the new funding will be used to support Pax-2, Terra’s 34,000-square-foot drone manufacturing facility in Accra, Ghana.
The facility is designed to achieve an annual production capacity of 50,000 systems by 2028 and will complement Terra’s existing factory in Abuja. The company plans to use both facilities to meet growing demand for drones and counter-drone systems from customers across Africa.
Terra is also expanding its international presence, opening its first overseas office in London. The company plans to establish another office in San Francisco and maintain a presence in Washington.
According to Nwachuku, Terra intends to sell its systems beyond Africa, including to markets in the Gulf, South America and South Asia.
The expansion represents a shift from Terra’s initial focus on Africa towards a broader market for defence systems designed and manufactured on the continent as demand grows across multiple customer markets.
Key Takeaways
Terra’s $52 million seed financing places the company among a relatively small group of African startups raising this level of capital for defence manufacturing rather than fintech, commerce or software.
The funding also highlights growing investor interest in defence technology beyond the US and Europe, as governments seek local suppliers for surveillance, drones and infrastructure protection.
Terra’s business model combines manufacturing in Africa with sales to governments and infrastructure operators that require systems designed for local conditions.
However, scaling production will be a major test for the company. Pax-2 in Ghana is expected to reach an annual production capacity of 50,000 systems by 2028, while Terra continues to operate its factory in Abuja. Achieving that scale will require contracts, supply chains, engineers and capital to develop simultaneously.
The company says it is on track to secure more than $100 million in contract bookings and generate revenue in the tens of millions of dollars this year. However, it has not disclosed the customers behind most of those contracts.
Terra’s expansion into London, San Francisco and Washington also signals a change in the company’s profile. Rather than positioning itself solely as an African defence supplier, Terra is seeking to become a manufacturer serving markets across the Global South while maintaining production in its factories in Nigeria and Ghana.
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