FrontEdge, the Lagos-based fintech, recently secured a noteworthy $10 million in a seed round, with debt financing contributing over 70% of the total. Distinguished investors, including TLG Capital and notable partners like JP Morgan and Providus Bank, are backing FrontEdge. 

The investment intends to fuel the expansion of the startup’s innovative approach, which involves providing upfront capital to SME exporters and importers without the conventional requirement of collateral.

Why The Investors Invested. 

Addressing a Significant Market Gap:

The investment in FrontEdge is motivated by the recognition of a substantial gap in financing for cross-border trade in Africa, particularly affecting SMEs. The limited availability of financial intermediaries in banks for trade transactions, especially for smaller enterprises, highlights an underserved market. The annual value of international trade volumes in Africa is a staggering $1.2 trillion, indicating a vast untapped market. This presents a significant opportunity for startups like FrontEdge to reshape and facilitate African cross-border trade.

Experienced Leadership and Industry Knowledge: 

The founder, Moni Alli, brings a wealth of experience, having worked as a consultant for McKinsey and in private equity at Development Partners International. His background in advising banks on SME financing, coupled with insights gained from digital transformations in tier-one banks, positions FrontEdge to understand and address the challenges in the market.

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Diversified Offerings and Partnerships:

FrontEdge has evolved beyond a lending-first platform to become a vertical bank, offering financing, cross-border payments, offshore accounts, and software tools. Partnerships with established entities such as JP Morgan and Providus Bank enhance its credibility and broaden its service capabilities.

Proven Success and Growth:

FrontEdge claims to have recorded a zero default rate after performing over 50 contracts, demonstrating successful repayments and the effectiveness of its business model. The reported 20% month-on-month growth in SME exporters on its platform further validates its impact in the market.

A Look At FrontEdge

Founded in 2021 by Moni Alli, FrontEdge emerges as a dynamic force in the African fintech arena. 

Headquartered in Lagos, FrontEdge primarily operates in Nigeria, South Africa, and Morocco. The startup’s core mission is to empower SME exporters and importers, providing them with working capital and sophisticated software tools to navigate the complexities of cross-border and international transactions. 

Beyond financing, FrontEdge distinguishes itself by offering additional tools such as logistics management, cargo insurance, and document management, creating a comprehensive ecosystem for SMEs. The startup has demonstrated significant customer growth, with SME exporters reportedly tripling their sales on the platform since its launch. 

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As FrontEdge plans expansion into Nigeria, Ghana, Ivory Coast, and Kenya, its goal is to diversify revenue streams and further contribute to the financial empowerment of African SMEs engaged in global trade. The collaboration with partners like JP Morgan and Providus Bank reinforces FrontEdge’s position as a strategic player in the intersection of finance and technology, poised to reshape the landscape of cross-border trade in Africa.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard