Today, TLG Capital, a pan-African alternative investment firm, declared that it has teamed up with OnePipe to offer finance services to Nigeria’s unorganized sector.
OnePipe, a Nigerian financial infrastructure company, used the company’s technological platforms to enable traditional businesses to integrate financial services into their operations. The company offered up to 2.25 billion Naira in a collateralized loan facility for OnePipe.
The transaction, which represents TLG Capital’s 34th investment, was executed by the TLG Africa Growth Impact Fund (AGIF). Small retailers in Nigeria would receive inventory financing thanks to the investment.
OnePipe is a quickly expanding financial infrastructure business that enables retailers to obtain products from bigger distributors who partner with OnePipe on credit. The business has established a wide network of partners and field agents, including banks and payment service providers. Another impressive group of investors in OnePipe is the Norrsken Foundation, Techstars, Tribe Capital, V&R Associates, Canaan Partners, DFS Laboratories, Ingressive Capital, Acquity, Raba, Saison Capital, The Fund, and Two Culture Cap.
With the help of the financing from TLG Capital, OnePipe will be able to grow its business with the goal of dominating the Nigerian informal financial services market.
Almost 85% of jobs in Africa are in the unorganized sector, according to the International Labor Organization. Financial access to this industry is essential for promoting economic growth and eradicating poverty. The model developed by OnePipe is well suited to meet this requirement, and TLG Capital’s investment will assist in that endeavor.
The CEO of OnePipe, Ope Adeoye, stated: “TLG is the partner of choice as we strive to scale due to their considerable experience structuring debt in Nigeria and their wide network across Africa, particularly in venture. TLG, who serves as our first debt partner, has been a valuable tool in helping us plan our growth and balance sheet strategy. We hope to develop the infrastructure through this relationship to offer credit and payment services to the two-thirds of Nigerian business owners who lack access to efficient and useful banking services.
Isaac Marshall, an investment professional at TLG, said: “Nigeria’s $220 billion cash-based informal sector comprises 38 million enterprises that are the most neglected segment of Nigerian businesses, avoided by both the fintechs and traditional financiers. With a clever product to help these businesses to obtain both credit and better purchasing terms on their goods, OnePipe has pioneered a model that can provide sustainable income growth to tens of millions of micro-enterprises.”
A number of Sustainable Development Goals, including SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 9, are supported by TLG Capital’s investment in OnePipe (Industry, Innovation and Infrastructure). OnePipe supports economic growth and sustained income growth by extending financing to unregistered microbusinesses.
The collaboration on this project excites TLG Capital and OnePipe, and they look forward to collaborating to support financial inclusion and economic development in Nigeria.