OnePipe, a Nigerian financial infrastructure company, has secured a collateralized credit facility from TLG Capital, a pan-African alternative investments firm.
The credit facility, amounting to 2.25 billion Naira, will be used to provide inventory finance to small shops in Nigeria. This marks TLG Capital’s 34th investment and was completed by the TLG Africa Growth Impact Fund (AGIF).
OnePipe has quickly become a leading financial infrastructure company in Nigeria, with its technology platforms enabling traditional businesses to embed financial services into their operations. The company has built a strong network of partners, including banks and payment service providers. OnePipe’s model is positioned to provide financial access to the informal sector, which accounts for over 85% of employment in Africa, according to the International Labour Organization.
TLG Capital’s investment in OnePipe will help the company expand its operations and become a leading provider of financial services to Nigeria’s informal sector. The investment aligns with several Sustainable Development Goals, including No Poverty, Decent Work and Economic Growth, and Industry, Innovation and Infrastructure.
Ope Adeoye, the CEO of OnePipe, expressed his excitement over the partnership with TLG Capital. He 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.”
Isaac Marshall, an investment professional at TLG, highlighted the importance of providing financial access to Nigeria’s informal micro-businesses. He 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’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.
TLG Capital and OnePipe are excited to collaborate on this initiative and look forward to promoting financial inclusion and economic growth in Nigeria.
