Nigerian invoice financing startup Zuvy raises $4.5 million
Despite the economic significance of the African small and medium-sized enterprises (SMEs), a sector that forms the backbone of our continent’s GDP and employment, these enterprises have remained strikingly underserved financially.
Recognizing this underserved sector, Nigerian invoice financing Zuvy has secured $4.5 million in debt and equity funding to address the credit liquidity deficiencies of African SMEs and drive their digital transformation.
Launched in 2021, Zuvy offers effective financial solutions and software tools that enable vendors and buyers in the healthcare, supply chain, and fast-moving consumer goods industries to settle invoices and manage payment schedules.
In particular, it provides an invoice management service that cushions SMEs from delays in the invoicing process by providing liquidity while the SMEs await the 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.
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Buyers using Zuvy's platform have access to free invoice management software, simplifying their procurement and vendor management processes. Rather than spending several hours dealing with manual pen-and-paper processing, buyers utilize the Zuvy dashboard to receive invoices electronically from their vendors. Interestingly, customers can then receive rebates on the invoice amounts they pay resulting in significant cost savings.
Having recently emerged from stealth mode, Zuvy plans to utilize the funding to scale its operations nationwide and become a leading provider of accessible and tailored credit solutions for the SME sector in Africa.
The funding round was led by TLG Capital, a prominent investor in African ventures, and included participation from Next Chymia Consulting HK, Dunbar Capital, Vicus Ventures, and notable angel investors. The strong support from global investors underscores their belief in Zuvy's mission and its potential to make a significant impact in the African SME landscape.