Zuvy, a Nigeria-based invoice financing company, has secured a total investment of $4.5 million. This investment includes $4 million in debt funding and $500,000 in equity funding. The investors who have contributed to this funding round are TLG Capital, Dunbar Capital, David Mussafer (chairman of Advent International), Next Chymia Consulting HK, Khalil Osman from Vicus Ventures, and several others.

The intention behind this investment is to support Zuvy’s expansion plans and meet the increasing demand from Nigerian vendors. Zuvy aims to empower small businesses by providing them with upfront cash, enabling them to fulfill their business needs promptly. The investment will be utilized to further develop Zuvy’s reach, improve its services, and cater to the financing requirements of small businesses in Nigeria.

Why the Investors Invested

One major reason for the investors’ interest in Zuvy is the substantial market opportunity it addresses. Zuvy addresses a significant market opportunity by providing liquidity to small businesses hindered by their capital being tied up in receivables. This innovative approach allows businesses to manage their cash flow effectively, expand their customer base, and take on new contracts. The investors recognize the potential impact of empowering small businesses in Africa and bridging the SME financing gap, which is estimated to be around $300 billion.

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Zuvy’s disruptive business model also sets it apart from traditional financing options. By offering invoice management software for buyers, Zuvy streamlines the vendor-buyer relationship and eliminates the inefficiencies associated with manual processes. This technology-driven solution resonates with the investors, as it presents significant operational benefits for large businesses and improves overall efficiency in the invoicing and payment processes.

The investors’ confidence in Zuvy’s potential seems also influenced by the startup’s strategic focus on the Nigerian market. Nigeria represents a substantial market with numerous small businesses in need of financing solutions. By concentrating on expanding within Nigeria first, Zuvy demonstrates a thoughtful approach to market penetration. The investors recognize the value of establishing a strong presence in Nigeria, a key player in the African business landscape, before considering regional expansion.

A Look at Zuvy

Zuvy was founded in 2021 by Angel Onuoha and Ahmad Shehu. Angel Onuoha, a Harvard College alumnus, serves as the CEO of the company, while Ahmad Shehu, a former senior engineer at Mono, holds the position of CTO. Zuvy’s primary market is Nigeria, with a focus on serving small businesses in need of invoice financing and management solutions.

Zuvy’s core offering revolves around providing upfront cash to retailers, enabling them to meet their business needs promptly. By addressing the capital constraints faced by small businesses, particularly those servicing large business chains, Zuvy empowers these businesses to fulfill their contract agreements. Additionally, Zuvy offers free invoice and purchase order management software, streamlining procurement processes for large businesses and eliminating the inefficiencies associated with manual methods.

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Zuvy’s vision extends beyond Nigeria, with plans to expand into other African countries in the future. The startup is committed to leveraging technology to bridge the financing gap for SMEs in Africa and promote economic growth. By providing convenient access to funds and innovative software solutions, Zuvy aims to transform the way small businesses manage their finances and contribute to their overall success.

Zuvy invoice financing Zuvy invoice financing

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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