FrontEdge Raises $10 Million to Boost Cross-Border Trade for African SMEs
Nigerian trade finance startup FrontEdge has successfully raised $10 million in a combination of debt and equity funding.
The company, founded in 2021 by Moni Alli, is gearing up to expand its operations not only across Nigeria but also in key African markets such as Kenya.
FrontEdge specializes in facilitating cross-border trades for small and medium-sized enterprises (SMEs) in Africa.
The startup offers working capital solutions and software tools designed specifically for exporters and importers in emerging markets.
The primary goal is to empower SMEs, providing them with the necessary capital and expertise to scale their operations and compete effectively on the international stage.
Moni Alli, the founder of FrontEdge, highlighted the critical role SMEs play in African economies.
He emphasized the immense potential within the export market for small and medium-sized businesses in Africa.
However, Alli pointed out the challenges faced by business owners, ranging from financing export activities to a lack of support throughout the export process.
"All the way from Lagos to Mombasa, business owners are constrained by an inability to finance their exports as well as a lack of support at every stage of the export process. FrontEdge was founded to address both challenges through a seamless technology platform tailored to cross-border traders," explained Alli, who initiated the venture after completing his MBA at Harvard Business School.
To fuel its mission of enhancing cross-border trade in Africa, FrontEdge secured $10 million in funding through a round led by TLG Capital, with participation from Flexport.
TLG Capital expressed pride in supporting FrontEdge's mission to empower African SMEs, serving as a crucial link to provide access to capital for exporters on the continent.
Johnnie Puxley of TLG Capital stated, "FrontEdge is strategically placed to tackle an important problem that must be solved for African traders to effectively engage in global trade, and we believe that the leadership will execute on the vision."
The funding round signifies a significant step forward for FrontEdge as it works towards transforming the landscape of African cross-border trade.
Tom Jackson / Disrupt Africa