Trade Lenda, a Nigerian fintech startup that provides access to financing for micro, small, and informal retailers’ business needs, has secured US$520,000 in pre-seed funding to accelerate its expansion.
Sovereign Capital, ARM Labs, and Expert Dojo, all of which have an interest in the African continent, as well as a few angel investors in Nigeria, provided the funds.
The Lagos-based Trade Lenda was founded in 2021 to assist small businesses in obtaining quick and affordable credit with no upfront collateral within six hours.
For small businesses in need of fast and efficient financing, the startup has developed a data-driven credit-scoring tool that assesses both character and capacity.
“Growing up, I had first-hand knowledge of how small businesses may play a crucial role in determining the future of which I am a part. My mother was a store. According to Adeshina Adewumi, CEO of Trade Lenda, “This is one of the things that drives us because we fully understand that we can support today with our combined experience the millions of women like my mother who would go on to support their families at home.
With over US$2 million in disbursements and an average disbursement period of less than six hours, the startup has so far given credit to over 1,500 firms.
The startup intends to increase revenues 10 times in 2023 thanks to the current funding round.
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