TLG Capital led $4.8 M credit facility secured by Nigerian fintech startup OnePipe

OnePipe, a Nigerian FinTech company, has received a US $4.8 million credit facility from TLG Capital. It will utilize this money to offer inventory financing to small businesses while also letting go of an unspecified number of team members in order to increase its runway.

OnePipe, which was introduced in August 2019, combines APIs from banks and fintechs into a standardized gateway that is simple to connect and streamlines relationships. In November 2021, the firm secured US $3.5 million in early money.

OnePipe reported that it has now established a US $4.8 million credit line with TLG Capital, a pan-African alternative investments company, with the intention of offering financial services to Nigeria’s unorganized sector.

“TLG’s extensive experience structuring debt in Nigeria and their deep network across Africa, particularly in a 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,” said Ope Adeoye, CEO of OnePipe.

The most underutilized sector of Nigeria’s economy, according to Isaac Marshall, an investment expert at TLG, is micro-enterprises that deal in cash, which generate $220 billion in US dollars annually in economic activity.

“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,” he said.

According to a number of media sources, OnePipe has also reduced the compensation of its senior team and let go of a small number of staff.