Trade Lenda, a Nigerian fintech firm that provides access to financing for the business needs of micro, small, and informal retailers, has obtained US$520,000 in pre-seed capital to speed its expansion. Trade Lenda was founded in 2016
The funding came from several different sources, including Sovereign Capital, ARM Labs, and Expert Dojo, all of whom have an interest in the African continent and a few angel investors in Nigeria.
Trade Lenda, with headquarters in Lagos, Nigeria, was established in 2021 to assist small businesses in acquiring credit quickly, affordably, and within six hours with no initial collateral required.
The startup company has developed a data-driven credit-scoring tool that measures character and capability specifically for small enterprises that need quick and efficient financing.
As I was growing up, I gained first-hand experience of how the decisions made by small businesses may have a significant impact on the future of the community of which I am a member. My mother worked in retail sales. In the words of Adeshina Adewumi, Chief Executive Officer of Trade Lenda:
This is one of the things that drives us because we are fully aware that we can support millions of women like my mother who would go on to support their family at home by utilizing the experience we have collected today with the knowledge that we have gained.
Over 1,500 businesses have been granted credit by the young company, which has distributed more than US$2 million in loans and has a typical loan payout time of fewer than six hours.
The current fundraising round will help the firm achieve its goal of increasing revenue by a factor of ten by 2023.