TLG Capital Partners One Pipe, Provides N2.25 billion Collateralized Credit Facility to Expand Operations

Private investment firm which invests in small and medium-sized enterprises (SMEs) across sub-Saharan Africa TLG Capital has closed a N2.25 billion deal with One Capital, a startup that powers digital financial services, to expand its operations.

The deal which had reportedly been in the works since the third quarter of last year will power One capital’s inventory finance solution for small businesses. 

Speaking on the investment made to One Pipe, investment professional at TLG Isaac Marshall said, “Despite contributing $220 billion per year in economic activity, micro-enterprises that deal in cash are Nigeria’s most neglected business segment. Fintechs tend to prefer more digitally integrated clients and traditional financiers tend to prefer bigger clients.

“With a clever product to help these small shops 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.”

This investment will enable OnePipe to grow its business and work towards its goal of being Nigeria’s top supplier of financial services to small businesses. Its partnership with several banks and fintech has provided the startup with the underlying infrastructure.

OnePipe helps organizations integrate financial services within their value chains to create customer loyalty & improve overall business operations. Since its launch in 2018, OnePipe has raised at least $9.2 million.

Investors King understands that the Techstars-backed company is one of the African companies that has also garnered the support and partnerships of several banks and businesses. This includes, Flutterwave, Quickteller, Fidelity Bank, Migo, Polaris Bank, SunTrust Bank, Providus Bank, Paystack, and Quickteller.

The startup was also exposed to the fall of Silicon Valley Bank; with about $829,000 in the bank which represented 70% of their cash position. Onepipe’s funding announcement also comes as the company has laid off about 20% of its employees, as it seeks to navigate the current economic downturn and adjust to the macroeconomic headwinds.