TLG Capital launches credit facility for Nigeria's OnePipe
TLG Capital, a pan-African alternative investments firm, has partnered with OnePipe to provide credit services to the informal sector in Nigeria. The firm provided up to 2.25 billion naira (c. $122.2 million) in a collateralised credit facility for OnePipe, a Nigerian financial infrastructure company that uses its technology platforms to enable traditional businesses to embed financial services into their operations.
The deal was completed by the TLG Africa Growth Impact Fund (AGIF). The investment will be used to provide inventory finance to small shops in Nigeria.
OnePipe is a fast-growing financial infrastructure company that enables merchants to access goods on credit from larger distributors that work with OnePipe. The company has built an extensive network of field officers and partners, including banks, and payment service providers. OnePipe also has secured a strong roster of equity investors, including Atlantica Ventures, P1 Ventures, Norrsken Foundation, Techstars, Tribe Capital, V&R Associates, Canaan Partners, DFS Labs, Ingressive Capital, Acquity, Raba, Saison Capital, The Fund and Two Culture Cap.
The investment by TLG Capital will allow OnePipe to expand its operations with a vision of becoming a leading provider of financial services to micro-enterprises in Nigeria. According to the International Labour Organisation, micro-enterprises account for over 85% of employment in Africa. Providing financial access to this sector is crucial for economic development and poverty reduction. OnePipe’s model is well-positioned to address this need, and TLG Capital’s investment will help to support this effort.
Ope Adeoye, the CEO of OnePipe said, “TLG’s extensive experience structuring debt in Nigeria and their deep network across Africa, particularly in venture, made them the partner of choice as we look to scale. TLG is our first debt partner and has been a powerful resource in planning our growth and balance sheet strategy. Through this partnership, we’re looking to build the infrastructure to provide credit and payment services to the two-thirds of Nigerian business owners who don’t have access to effective and practical banking services.”
Isaac Marshall, an investment professional at TLG said, “Despite contributing $220 billion per year in economic activity, micro-enterprises that deal in cash are Nigeria’s most neglected business segment. Fintechs tend to prefer more digitally integrated clients and traditional financiers tend to prefer bigger clients. With a clever product to help these small shops 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.”