FrontEdge, a Nigerian fintech dedicated to empowering African SMEs through cross-border trade solutions, has successfully secured $10 million in a seed round of funding. The investment, led by TLG Capital with participation from digital freight forwarder Flexport, will fuel FrontEdge's expansion across Africa and enable the company to introduce new products and services.
Founded in 2021 by Moni Alli, FrontEdge addresses the critical gap in working capital and financial infrastructure faced by African SMEs engaged in cross-border trade. The company provides a unique combination of upfront financing, cross-border payments, offshore accounts, and software tools tailored to the specific needs of African traders.
“We are excited to receive this strong support from TLG Capital and Flexport, which validates our approach to unlocking Africa's trade potential,” said Moni Alli, CEO of FrontEdge. “This funding will enable us to scale our operations, expand our reach, and further empower African SMEs to compete effectively in the global market.”
FrontEdge's innovative financing model removes the collateral requirements typically associated with trade finance, allowing SMEs to access the capital they need to grow their businesses. The company's proprietary underwriting process, based on transaction data, enables rapid decision-making and efficient funding.
With a proven track record of zero defaults across over 50 contracts, FrontEdge has demonstrated its ability to effectively manage risk and support the success of African SMEs. The company's customer base has grown by 20% month-on-month, and sales have tripled since its launch.
“FrontEdge is playing a critical role in addressing the trade finance gap that has long hindered African SMEs,” said Johnnie Puxley, an investment professional at TLG Capital. “The company's innovative approach and experienced leadership team have impressed us, and we are confident that FrontEdge will continue to make a significant impact on African trade.”
The $10 million funding will allow FrontEdge to:
- Expand its financing product across Nigeria, Ghana, Ivory Coast, and Kenya
- Launch additional products to diversify revenue streams beyond financing
- Hire more talent to support its growth and expansion plans
FrontEdge is committed to bridging the gap between African SMEs and global markets, enabling them to realize their full potential and contribute to Africa's economic growth and prosperity.
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