Global private investment firm, TLG Capital (TLG), announced yesterday a debt facility of up to $5.0 million in Flow 48, an early-stage FinTech company at the forefront of redefining Alternative Finance in Africa.
Flow 48 introduces an automated and integrated platform providing clients access to financing based on their revenues. This investment underscores TLG’s commitment to fostering innovation in lending to provide African SMEs access to capital.
The investment is made through TLG’s Africa Growth Impact Fund (AGIF). Flow 48’s team has a track record of building two unicorns, whose journeys revealed the need for alternative financing mechanisms. “Revenue-Based Financing is an innovative funding solution that has seen great success in the US and Europe.
In Africa, where banks are often straightjacketed to lending against landed property, the use case for RBF is even stronger.” says Isaac Marshall, Investment Professional at TLG Capital.
Idriss Alrifai, CEO of Flow 48, commented on the partnership with TLG Capital as well, “we are super excited to be working alongside TLG as we have common ambitions and values. We are thrilled to partner with an organization that is so deeply knowledgeable about the new region and we believe this partnership can be very fruitful in South Africa where we will enter during the course of Q1 2024”
The strategic alignment between TLG Capital and Flow 48 extends beyond financial considerations, fostering innovation and transformative solutions in the global financial landscape.
Flow 48’s focus on Finclusion addresses a critical issue in the African market, where a substantial percentage of Micro, Small, and Medium-sized Enterprises (M/SMEs) remain underbanked. By offering credit access based on documented revenues, Flow 48 emerges as a catalyst for financial inclusion, unlocking opportunities for businesses previously excluded from traditional bank credit.
The integration of modern payment gateways facilitates the digital recording of revenues, paving the way for a new asset class in African financing. This not only positions Flow 48 as an industry pioneer but also aligns with TLG Capital’s commitment to fostering innovation and impactful investments.
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