Nigerian Fintech FrontEdge Secures $10 Million to Boost African Cross-Border Trade
FrontEdge, a Nigerian fintech startup based in Lagos, has successfully raised $10 million in a seed round of funding, with over 70% of the capital contributed through debt financing.
This significant investment aims to drive the expansion of African cross-border trade and provide much-needed support to small and medium-sized enterprises (SMEs) operating in the sector.
Founded in 2021 by Moni Alli, a former McKinsey consultant with extensive experience in digital transformations for tier-one banks, FrontEdge specializes in catering to the financial needs of SME exporters and importers.
The company provides working capital and software tools to facilitate seamless cross-border and international transactions, addressing the prevalent financing gap faced by SMEs in the African region.
FrontEdge’s innovative approach distinguishes it from traditional banks.
Unlike conventional lenders, FrontEdge offers upfront capital to exporters based on transaction-based underwriting, eliminating the requirement for collateral.
This flexible approach allows exporters to access financing at critical stages of their transactions, often when goods are in transit or at the warehouse. By accelerating receivables, FrontEdge empowers exporters to engage in more trade opportunities.
Beyond its lending capabilities, FrontEdge has evolved into a comprehensive trade finance platform.
The company integrates with various databases to provide valuable insights into cross-border trading dynamics and underwrites offshore credits of buyers. Additionally, FrontEdge facilitates the setup of overseas offshore accounts, addressing the challenges associated with capital controls and high banking fees.
With the newly secured funding, FrontEdge plans to expand its operations and enhance its service offerings.
The company aims to hire additional talent, scale its financing product across Nigeria, Ghana, Ivory Coast, and Kenya, and launch new products to diversify its revenue streams beyond financing.
TLG Capital were among the lead investors in the startup’s latest funding round.
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