TLG Capital backs Nigeria's Zuvy
Zuvy, an invoice financing company based in Nigeria, has recently secured $4.5 million in equity and debt funding. The funding round was spearheaded by TLG Capital. Zuvy offers invoice management software and discounting services.
Despite the digital age, a substantial percentage of Nigerian entrepreneurs still conduct business offline. Small and medium enterprises (SMEs) regularly grapple with administrative complexities such as cash flow management and collection of receivables. Frequently, they find themselves dealing with error-riddled manual processes or high-cost technologies, and they seek more straightforward access to finances and simplified operations.
Zuvy was founded in late 2021, starting as an invoice financing platform designed to expedite the receivables collection process for SMEs. The company has since expanded its suite of services to include a range of complimentary software tools that assist larger businesses with procurement and vendor management. Beginning in the fast moving consumer goods sector, Zuvy demonstrated remarkable growth and has since extended into the healthcare and supply chain sectors.
Zuvy’s WhatsApp integration enables vendors to create and dispatch invoices directly to their buyers. This feature has significantly improved operational efficiency for large buyers by saving time otherwise spent on managing paper invoices. Zuvy also offers discounts on buyer invoice payments to vendors, leading to substantial cost savings for these businesses.
Zuvy’s recent funding round drew a varied group of international investors, including TLG Capital, Dunbar Capital, Next Chymia Consulting HK, David Mussafer, chairman of Advent International, and Khalil Osman from Vicus Ventures.
Isaac Marshall, an investment professional at TLG Capital, remarked, “In Nigeria, small businesses receive only 0.3% of total commercial banking credit. This transmission failure is a key part of Africa’s $300 billion SME financing gap. Factoring invoices represents a massive opportunity to bring capital to these small businesses, but only if you can build the tech stack to make it scalable.”
“This problem is exactly what Zuvy is solving – building the capital capillaries to fund small businesses. Angel and Ahmad are excellent founders and Zuvy gets this opportunity and is perfectly positioned to pull this off,” he stated.
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