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News

FrontEdge raises USD 10 mln in equity and debt

Friday 24 November 2023 14:36 CET | News

Nigeria-based fintech, FrontEdge, has raised USD 10 million in a debt and equity seed round led by lead investor, TLG Capital. 

 

This funding would be utilised to facilitate the growth of African cross-border trade by providing SME exporters and importers with the capital and expertise to scale and compete internationally. FrontEdge stated that TLG Capital led the fundraising round and other investors include, digital freight forwarder, Flexport.

Nigeria-based fintech, FrontEdge, has raised USD 10 million in a debt and equity seed round led by lead investor, TLG Capital.

Empowering African SMEs 

FrontEdge is a financial technology company that assists small and medium-sized enterprises (SMEs) involved in cross-border trade. The company aims to distinguish itself from traditional banks by providing upfront capital to exporters without requiring collateral. The company evaluates transactions and intervenes at different stages, typically when goods are in transit or stored in a warehouse. This approach allows FrontEdge to fund the working capital gap, enabling SMEs to speed up receivables and participate in more transactions. The average payment terms are set between 60-90 days. 

Initially focusing on lending, FrontEdge has evolved into a comprehensive platform. The company integrates with various databases to analyse cross-border trading dynamics and assess overseas credits. Recognising challenges related to capital controls and high banking fees, FrontEdge supports entities in setting up overseas offshore accounts, facilitating the conversion of dollar proceeds into the local currency. 

FrontEdge acts as a vertical bank tailored to the needs of African traders, offering financing, cross-border payments, and offshore accounts. Additionally, it provides software tools, including logistics management, cargo insurance, and document management, to exporters to complement its financial offerings. Notable partners of FrontEdge include JP Morgan and Providus Bank. 

Looking ahead, the fintech, backed by lead investor TLG Capital and others like Flexport, plans to expand its team, scale its financing products across multiple African countries, and introduce new products to diversify revenue streams beyond financing. FrontEdge aims to play a crucial role in supporting African SMEs engaged in global trade. 

More: Link


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Keywords: funding, investment, SMEs, cross-border logistics
Categories: Payments & Commerce
Companies:
Countries: Nigeria
This article is part of category

Payments & Commerce

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