MVX, the Nigerian digital freight booking and trade finance technology startup, has partnered with a leading SME lending platform, PayHippo, to expand trade finance opportunities for small and medium-sized businesses in Nigeria.
The partnership seeks to accelerate trade in Nigeria and generate positive economic outcomes for the largest economy in Africa by empowering SMEs, especially the underserved, with easy and affordable, collateral-free loans to supercharge their businesses and create more economic opportunities for the country.
MVX and PayHippo have disbursed over 5 million Naira in trade finance to a Nigerian SME as a result of this partnership.
“We are excited about this partnership because it is exactly where we want to be as a company. A part of our goals is to facilitate trade in Africa by lowering the barriers of entry to financing opportunities for SMEs on the continent. Collaborating with PayHippo would enable us to achieve our goal and we are pleased with this development,” Abdelmuizz Bello, MVX’s Trade Finance Director, had stated.
Approximately 80 to 90 percent of global trade depends on trade finance, according to the WTO. However, the African Development Bank (AfDB) estimates Africa’s annual trade finance shortfall to be north of 82 billion US dollars.
Bridging this gap, especially by targeting the funding needs of SMEs in Africa as they constitute 95% of businesses on the continent, would accelerate trade and economic development in the second most populous continent on earth.
MVX connects SMEs to verified third-party financial partners to access quick, easy, and non-collateralized working capital. Its digital solution provides an integrated, seamless logistics + financing platform that not only advances credit to businesses to pay their customers but also facilitates logistics for them.
That means with MVX, businesses can obtain financing for shipments and also have access to an end-to-end logistics solution to move freights to desired locations.
To achieve this, the innovative organization:
- Employs technology to keep processes efficient and cost lower.
- Works with world-class partners and employees to create truly remarkable experiences for its customers.
- Accelerates trade in Africa by bringing MVX to more countries across the continent.
Elganora Limited, an Agro commodities and solid minerals trading company with a focus on promoting the trade and export of Agro commodities from Nigeria and West Africa, is a beneficiary of the MVX and PayHippo SMEs financing alliance, providing the agribusiness outlet a financing vehicle to help it procure and supply 30MT of rice paddy from various farm gates within Taraba and Plateau States.
“It was really fast and easy accessing the loan from MVX,” Elganora Founder, Adebayo Toluwani, commented. “Once they performed their due diligence, I received the loan to purchase the farm produce I needed. It is a positive step for our ecosystem.”
MVX continues to build products and platforms that fuel the entrepreneurial drive of Africans and facilitate the expansion of business activities within the continent. Since its inception, the Nigeria-based technology startup has deployed flexible, seamless, and innovative products to power freight booking and provide trade finance for small and medium-sized enterprises domiciled in Africa.