Onepipe, a fintech startup based in Nigeria, has secured a $4.8 million credit line from TLG Capital, a pan-African investment firm.
The TLG Africa Growth Impact Fund (AGIF), a credit company that makes investments in the region south of the Sahara, closed the investment round.
Onepipe is a service provider that offers multiple options, some of which include integrated payment and reconciliation features.
OnePipe was launched in 2018, and since then, it has raised a total of $9.2 million.
The terms of this agreement, according to the company’s CEO, Ope Adeoye, will limit the capital deployment to the inventories of small stores in the startup’s network.
According to Ope Adeoye, the CEO of the company, “We acquired a revolving line credit particularly required to fund inventory finance for small shops via the FMCG distributors that work with us.” The restrictions do not let us use the money for any other purpose.
“The supply of goods shouldn’t be restricted because of the shortage of money. We give distributors the flexibility to provide retailers with inventory financing throughout the supply chain. The sellers can simply refund us after the goods are sold, the company said.
Onepipe intends to make the most of the investment made by TLG Capital in order to grow its business and establish itself as a leading supplier of financial services to Nigeria’s informal economy.
Also, the financing will support the startup’s inventory lending option for small businesses.
Read more on Tech Gist Africa:
Curacel, an insurtech startup in Nigeria, secures $3 million in seed funding
