By Uchechi Obodo

Salad Africa, a fintech specializing in embedded lending infrastructure for B2B marketplaces and technology enabled SMEs, has announced a strategic partnership with Glovo, a leading multi category app connecting users with businesses and riders in Nigeria. This collaboration aims to launch an innovative SME financing program designed specifically for eligible Glovo partners.

The primary goal of this partnership is to provide qualified Glovo partners with access to working capital under more favorable terms than those offered by traditional banks. By leveraging Salad Africa’s technology, the program intends to enable businesses to scale rapidly, introduce new products, and ultimately drive increased revenue within the Glovo ecosystem.

Under the terms of the partnership, qualified partners on the Glovo platform can apply for loans ranging from ?50,000 to over ?100 million. Eligibility and credit decisions will be determined using real-time sales data from the Glovo app. To qualify for these loans, merchants must have been active on the platform for at least three months and meet specific performance and operational criteria. This data-driven approach is designed to ensure faster, fairer, and more precise lending decisions.

Once identified as eligible, partners will receive notifications detailing Know Your Business (KYB) requirements and application procedures. Upon successful completion and approval of KYB, funds will be disbursed directly to the partners, with repayments conveniently handled as a percentage of future sales through the Glovo platform. Unlike conventional financial institutions, this initiative eliminates the need for collateral by utilizing real-time sales data to assess eligibility and creditworthiness.

This financing program is part of Glovo Local, a global initiative aimed at empowering small and medium sized enterprises (SMEs) within the digital economy. With SMEs accounting for 90% of shops and restaurants on the Glovo app across 23 countries, Glovo Local provides essential tools and support such as marketing assistance, order management solutions, enhanced visibility on the platform, training opportunities, and seamless financial support.

Kolawole Adeniyi, Head of Commercial at Glovo Nigeria, emphasized the importance of this partnership: “At Glovo, we’re constantly looking for ways to empower our partners and support their growth journeys. Through this initiative, we’re providing access to much needed working capital directly within our ecosystem, making it easier and faster for our partners to scale. This partnership with Salad Africa is a game changer it ensures our merchants can unlock new opportunities without traditional barriers.”

Chikodi Ukaiwe, Chief Executive Officer at Salad Africa, expressed enthusiasm about the collaboration “Supporting local businesses is at the heart of everything we do at Salad. We’re thrilled to partner with Glovo to provide small and medium-sized restaurants with fast, fit-for-purpose financing to meet growing demand and scale their operations. Embedded finance is unlocking new channels of credit that simply weren’t available before.”

With this groundbreaking initiative, Glovo reinforces its commitment as a growth partner for local businesses while being the first in the industry to offer such financing solutions tailored specifically for SMEs in Nigeria.

It’s fantastic to hear about the impactful work that Glovo and Salad Africa are doing to enhance financial inclusion for SMEs in Nigeria! By removing barriers to traditional finance, they are empowering small and medium sized enterprises, which are vital for local economies. The $1.5 million in credit unlocked and the support for around 1,500 SMEs is a significant achievement.

Salad Africa’s embedded lending solutions are a game-changer, as they connect underserved businesses with essential financial resources. This not only helps those businesses scale but also promotes a more robust digital landscape across the continent.

Glovo’s role as a multi-category app that facilitates on-demand services enhances accessibility and convenience for users while supporting local businesses. Their vision of creating the largest online marketplace is ambitious and exciting.