10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	10.0

* These investment figures are indicative

IFC anticipates that the Project Outcomes are derived from improved access to supply chain for small retailers in Nigeria, by expanding in Tier 2+ cities, where retailers face frequent inventory shortages due to more challenging access to market than their counterparts in Tier 1 cities, and continuing expansion in Tier 1 cities. These outcomes would be achieved by scaling up an online platform that connects retailers with suppliers and has the potential to result in improved efficiency for retailers as the Company ensures reduced procurement costs and on-time delivery, compared to offline supply chain solutions. In line with IFC's initial investment in TradeDepot, a significant number of new retailers are expected to be women, thereby contributing to alleviate the gender divide in the Nigerian economy. This investment is expected to increase the inclusiveness of retail supply chains in Nigeria, via demonstration and replication channels. The Company is introducing a business model that involves the use of basic mobile telephony and the provision of embedded finance to reach underserved retailers, especially in Tier 2+ cities. A successful expansion is expected to demonstrate the commercial viability of this business model and trigger replication by competitors, thereby enabling availability of online supply chain solutions in Tier 2+ cities, beyond the Company. 

Financial Additionality - Own Account Equity. IFC has committed US$ 2.9 million from its own account and US$ 0.9 million from the Women Entrepreneurs Finance Initiative ("We-Fi") facility to support the Company's expansion in Tier 1 cities in Nigeria as part of the initial investment in TradeDepot, and is now looking to invest up to US$ 15 million in TradeDepot's Series B financing round to support the Company's plan to deepen presence in Tier 1 cities and expand in Tier 2+ cities in Nigeria, an IDA/FCS country with increasing availability of venture capital, but more limited for growth stage companies: the country's 5-year average venture capital penetration rate from 2014 to 2018 was 0.01 percent, below the emerging market average of 0.03 percent (excl. China and India), and venture capital transactions at Series B+ stage represent 12 percent of all venture capital deals in Nigeria. Moreover, investment in e-supply-chain ventures is still limited in Nigeria: startups in this vertical received around US$ 3.75 million since 2010, less than 1 percent of all venture capital invested in Nigerian startups over that period. Non-Financial Additionality - IFC has supported the Company by building partnerships with clients and FMCG suppliers in Nigeria, Ghana and South Africa, as part of the initial investment into TradeDepot, such as the Lagos State Government in Nigeria. The current Project involves expanding the number of FMCG suppliers operating across Nigeria as well as leveraging embedded finance to onboard more retailers, especially in Tier 2+ cities in Nigeria. IFC has successfully invested in the FMCG and financial sectors in Nigeria and will leverage these networks to introduce the Company to potential suppliers and partners. IFC will leverage its Disruptive Technologies & Funds and Financial Institutions Group expertise to enhance the capacity of the Company to develop its working capital finance product, thereby enabling the Company to expand within Tier 2+ cities.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.