TLG Capital, a pan-African alternative investments firm, announced today that it has partnered with OnePipe to provide credit services to the informal sector in Nigeria.
The firm is providing N2.25 billion Naira in a collateralized credit facility for OnePipe, a Nigerian financial infrastructure company that uses its technology platforms to enable traditional businesses to embed financial services into their operations.
The deal was completed by the TLG Africa Growth Impact Fund (AGIF) and represents TLG Capital’s 34th investment. According to a statement from OnePipe, the investment will be used to provide inventory finance to small shops in Nigeria.
The investment by TLG Capital will also allow OnePipe to expand its operations with a vision of becoming a leading provider of financial services to the informal sector in Nigeria. According to the International Labour Organization, the informal sector accounts for over 85% of employment in Africa. Providing financial access to this sector is crucial for economic development and poverty reduction.
Partner of choice: Commenting on the deal, the CEO of OnePipe, Ope Adeoye, said:
- “TLG’s extensive experience structuring debt in Nigeria and their deep network across Africa, particularly in 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.”
An investment professional at TLG, Isaac Marshall, also said:
- “Nigeria’s $220 billion cash-based informal sector comprises 38 million enterprises that are the most neglected segment of Nigerian businesses, avoided by both the fintechs and traditional financiers. With a clever product to help these businesses 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.”
- “TLG Capital and OnePipe are excited to collaborate on this initiative and look forward to working together to promote financial inclusion and economic growth in Nigeria,” he added
TLG Capital’s investment in OnePipe aligns with several Sustainable Development Goals, including SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 9 (Industry, Innovation and Infrastructure). By providing credit to informal micro-businesses, OnePipe is helping to create sustainable income growth and promote economic development.