Frequently Asked Questions - tradelenda.com
Please explain in more detail what the company does?
Trade Lenda is a digital financial service solution supporting small businesses to get quick and affordable access to credit with zero upfront collateral within 6 hours where we believe a request to disbursement time would be within an hour over the next few months.
Through our data-driven credit scoring platform, Trade Lenda leverages data to evaluate character and capacity to bridge access to quick and efficient finance gaps for millions of small retailers and suppliers across emerging markets starting with Nigeria.
As a known fact, access to finance is a major challenge for MSMEs with a $5 trillion opportunity market across developing economies with Nigeria representing over $29 billion opportunity market. (Reference: PWC MSMEs report 2020 and IFC report 2021).
How and when was it formed?
As previous founders and with our experience working in the traditional financial service space, we have seen how hard it is to access credit opportunities and the significant impact timely working capital brings to the table. Sometimes the difference between business survival and the death of small businesses is quick and timely access to working capital as little as $250.
We kicked off with a micro-test through a partnership where we facilitated over $500k in disbursement to support trade businesses during the height of the pandemic. Later in May 2021, we decided to extend our solution to a close beta with over $380k disbursed to about 500 small businesses and the same fully repaid. Yes, we’ve so far achieved 100% success repayment.
Today, we have gone further to sign up 12 strategic partnerships which currently gives us a subscribed list of over 230,000 active retailers and suppliers to support with timely working capital and Local Purchase Order invoicing.
What is the team?
We are a team of 3 co-founders
- NMS 01 Ex-boy Adeshina Adewumi is a social entrepreneur passionate about the attainment of the Sustainable Development Goals (SDGs) in Africa and the globe. He is an Ex-Banker and Wealth Management expert from Stanbic IBTC and has previously founded One Kiosk while also serving as a Venture Partner at Aptive Capital between 2020 and 2021.
- NMS 04 Ex-boy Shina Arogundade is an experienced credit analyst having worked for United Bank for Africa for a number of years where he wrote credit policies for the bank in 20 African countries. He was part of the team that championed Credit automation and the first product launched in Ghana and then replicated across 20 other African countries.
- Oluwatosin Ayodele is a Full-stack Software Engineer, although originally studied accounting his passion for Technology led him to software development. He has gone to develop various solutions individually and as a team with applauds from his State as well as at Federal Government levels in Nigeria over the last 8 years. He is also a winner of the Kick start Award (season 3) by international breweries (a subsidiary of AB-Inbev) where he was celebrated for his use of technology to deepen internet coverage within his community in Osun State Nigeria.
Today we have come together to build the next Unicorn while contributing meaningfully towards Eradicating Poverty, Creating Jobs, and Driving Industry Innovation through the small businesses we support with our solution.
What gap in the market did you spot? What is the competition?
The competition is very dynamic with most digital players focusing more on the consumer (salary earners) lending even when they claim they focus on small businesses. We have however created a niche for ourselves by focusing on MSMEs especially those within the retail and supply value chain. We must however give credit to other players like Payhippo and Sycamore who are also working to bridge this huge gap for small businesses.
Our insights into the market and the opportunity can however be traced to our deep insights working with Retailers and Suppliers to give them access to the market. We saw the opportunity and decided to be the bridge towards unlocking the dividends of access to finance to secure trade for retailers and suppliers across emerging markets.
How are you funded? Any other serious landmarks?
Since conception till date, we have been able to cycle just above $250k+ in debt from various Angels (friends and family) at various points while an equity investment of $20k was raised through an Angel who also happens to be a former senior colleague while at Stanbic IBTC. Founders equally brought their contribution (cash and cash equivalent to the table). Officially we have been able to fully disburse and achieved 100% repayment so far. Today with over 230,000 retailers (online and structured informal markets) signed, we see this as a stepping stone to the next milestone. At a 10% success qualification of 200,000, this would translate to over $1,000,000 in revenue given the assumption of a single transaction over the next 6-9 months.
What has uptake been like?
Worked commenced on our WebApp in May 2021 and within 8 weeks, we had a fully functional platform to support small businesses achieved quick and prompt access to finance. You can watch testimonials of some of our early beneficiaries here with their consent.
Other KPIs are $385k in direct disbursement to 500+ merchants, 100% repayment, and 9 partnership access to over 230,000 retailers and suppliers.
What markets are you operating in currently? Any expansion plans?
We are currently operating from Lagos Nigeria but covering 8 states. We are working with various partners to fully cover the country before Q4 2022. By the first quarter of 2023, we would explore expansion to other African countries preferably with the same demography as Nigeria.
How do you make money? What are revenues/profits like so far?
We make our money from charging 5% 30 days interest on working capital credit we disburse to small businesses owners compared to some others who charge between 10-30% monthly with lots of hassles still involved. We were profitable for the first 9 months ended December 2021 with a revenue of $32,000.
What difficulties have you encountered in launching?
As second-time founders and with our experience, I would like to say we have a soft landing with little or no issues coming together. In fact, we got our first check of $20k even before we officially kicked off based on people who believed in us, our precedence, and the Vision to bridge the gap for millions of underserved small businesses across emerging markets. They have equally gone a step further to facilitate most of the funds we have cycled into bridging this access to finance gaps for small businesses so far.