Trade Lenda, a Nigerian FinTech firm that provides access to finance for micro, small, and informal merchants’ business requirements, has acquired US $520,000 in pre-seed capital to accelerate its expansion.
The Lagos-based Trade Lenda was established in 2021 to assist small companies in obtaining quick and inexpensive loans with no upfront collateral within six hours. The startup’s data-driven credit-scoring engine assesses a person’s moral integrity and ability to fill small businesses’ access to rapid and effective financing shortages.
With over US $2 million in disbursements and an average disbursement period of less than six hours, the startup has so far given credit to over 1,500 firms. After receiving a US $520,000 pre-seed fundraising round, it increased sales by 5 times between 2021 and 2022 and currently anticipates a 10-fold increase in 2023.
Investors with an eye on Africa, such as Sovereign Capital, ARM Labs, and Expert Dojo, as well as a few angel investors with roots in Nigeria, provided the investment.
“My mum was a retailer and growing up I had first-hand experience on how small businesses can be instrumental to shaping the future which I am part of today. This is one of the things that drives us, knowing fully well that we can support today with our collective experience of millions of women like my mum who would go on to support their families at home,” said Adeshina Adewumi, CEO of Trade Lenda.
