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Nigerian Fintech Startup FrontEdge Raises USD 10 M Debt, Equity Funding
Nigerian Fintech Startup FrontEdge Raises USD 10 M Debt, Equity Funding

Nigerian trade finance startup FrontEdge, which helps facilitate cross-border trades for African SMEs, has raised USD 10 M in debt and equity funding to scale operations across Nigeria, Kenya and other African countries. The round was led by TLG Capital and also included Flexport. The startup plans to use its capital to hire more talent, scale its financing product across Nigeria, Ghana, Ivory Coast and Kenya, and launch additional products as it aims to diversify its revenue streams beyond financing.

FrontEdge provides SME exporters and importers with the working capital and software tools needed to facilitate their cross-border and international transactions. FrontEdge provides upfront capital to these exporters based on transaction-based underwriting without a request for collateral. The startup typically engages when goods are on an actual vessel or, at times, at the warehouse, with average payment terms set between 60-90 days, allowing the fintech to fund the working capital gap, thereby accelerating receivables and allowing exporters to engage in more transactions.