Zuvy Raises $4.5 Million to Expand Invoice Financing in Nigeria and Beyond

Nigerian fintech startup Zuvy has raised $4.5 million seed to expand its reach and meet the growing demand from Nigerian vendors.

The funding round included investments from TLG Capital, Dunbar Capital, David Mussafer, chairman of Advert International, Next Chymia Consulting HK, Khalil Osman from Vicus Ventures, and several others.

Zuvy, which provides loans to customers, is changing the vendor-buyer relationship by offering cash upfront to vendors to meet their business needs and invoice management software for buyers to eliminate inefficiencies tied to traditional and pen and paper.

Speaking on the funds raised CEO OF Zuvy Angel Onuoha said, “Millions of small businesses on the African continent are hindered by their capital being tied up in receivables. Despite their economic significance, these enterprises remain strikingly underserved financially. Our primary goal is to empower businesses with the liquidity that they need when they need it. This flexibility ensures that these SMEs can better manage cash flow, expand their customer base and take on new contracts. We firmly believe that credit availability is the most potent growth catalyst for early-stage businesses, and as such, we strive to be the pre-eminent provider of accessible, tailored credit solutions for Africa’s SME factor”.

Also commenting on its investment in Zuvy, TLG Capital CEO Isaac Marshall said, “Factoring invoices represents a massive opportunity to bring capital to these small businesses, but only if you can build the tech stack to make it scalable. This problem is exactly what Zuvy is solving, building the capital capillaries to fund small businesses”.

Founded in 2021, by Angel Onuoha and Ahmad Shehu, Zuvy began as an invoice factoring company for small, and medium-sized enterprises, providing upfront cash for unpaid invoices.

The startup offers free invoice and purchase order management software that enables large businesses to streamline their procurement processes.

For small businesses in Nigeria, getting a loan from the bank is very difficult, as there are millions of these SMEs in the country that do not have access to formal financing. While these challenges prevent these businesses from obtaining loans from banks to cover their business needs, Zuvy offers more convenient access to funds by giving advance payments to vendors.

The startup aims to bridge this gap by offering a user-centric platform that connects buyers with their vendors, streamlining the invoice reconciliation process and coordinating payment schedules.

Zuvy’s platform enables vendors to liquidate outstanding invoices and access immediate capital when needed. This innovative solution provides SMEs with the liquidity necessary for growth expansion. The startup believes that credit availability is the most potent growth catalyst for businesses, and as such, strives to provide accessible and affordable credit solutions.

In addition to invoice financing, Zuvy offers free invoice management software that empowers businesses to create, manage, and send invoices to customers instantly. This software streamlines the invoicing process, enhancing efficiency and accuracy for SMEs.

With its user-centric platform, innovative solutions, and significant funding, Zuvy is poised to amplify invoice financing across Nigeria and provide SMEs with the necessary capital to thrive and contribute to Africa’s economic growth.

Notably, Zuvy operates within the fast-moving consumer goods (FMCG), health care, and supply chain sectors. The startup endeavors to provide essential invoicing software and working capital to enable its vendors to secure new contracts, digitize their operations and regulate their cash flow.

As its business continues to expand, Zuvy has since built a full suite of invoice creation, management, and payment tools that aid the process of procurement for small and large organizations.