A Nigerian startup Zuvy which provides credit facilities for small and medium enterprises (SME’s) has raised $4.5 million for its expansion across the country.
At the same time, the new capital will boost Zuvy’s efforts to scale up operations as it looks to come out of stealth mode for the first time.
In his statement, Zuvy Founder Angel Onuoha-Onyekuru noted that the company will work towards providing easily accessible credit for SMEs in Africa.
Moreover, Angel welcomed the new alliance with TG Capital pointing out that its decision to provide capital in Nigeria’s currency, the Naira, makes it a favorable option for startups in Africa and a testament to the fund’s deep understanding of current challenges. .
“We firmly believe that credit availability is a powerful catalyst for the growth of early-stage businesses. Therefore, we aim to become a leading provider of accessible and customized credit solutions for Africa’s SME sector,” Zuvy’s CEO Angel Onuoha-Onyekuru noted.
In particular, Zuvy will look to expand its invoice services which provides an invoice management tool to its customer base comprising various SMEs in and outside of Nigeria.
Through its invoice management services, Zuvy cushions SMEs from the delays in the invoicing process by providing liquidity while the SMEs await payment of the invoices.
This way, SMEs can evade the risk of closing down due to delayed payments which often cripples businesses in their early stages.
How Zuvy Works
Zuvy’s primary target is SMEs in the supply chain industries. To access the credit facility, businesses submit invoices for products or services delivered to Zuvy.
In return, Zuvy makes arrangements with the business receiving the goods or services to confirm the legitimacy of the invoice presented.
Once the claim for the invoice is confirmed, Zuvy provides a loan to the business and thus ensures that businesses carry on with their operations in the period of awaiting payment for goods and services delivered.