CycleFlow, IFC launch AI-powered supply chain finance platform

CycleFlow, powered by the global working capital platform C2FO, has officially launched its operations in Nigeria in partnership with the International Finance Corporation (IFC).

This initiative marks the first phase of a nationwide strategy designed to revolutionize liquidity access for Micro, Small, and Medium Enterprises (MSMEs) across Africa and other emerging markets.

The platform functions by connecting global and local financial institutions with anchor buyers and their MSME suppliers, allowing financial institutions to extend affordable short-term financing by purchasing and discounting invoices already accepted for payment by large buyers.

This model allows smaller businesses to convert sales receivables immediately into cash by leveraging the superior credit profiles of their buyers rather than relying on traditional collateral, a move that effectively levels the playing field for smaller suppliers.

Segun Ogunsanya, Chairman of Nigeria-based CycleFlow, described the launch as a turning point for the local financial ecosystem, noting that enabling immediate access to funds locked in accounts receivable powers economic growth across the entire ecosystem.

He emphasized that this innovative technology addresses the most significant financial challenges in Africa and ensures that capital reaches the MSMEs that drive the economy. When fully scaled, the platform is projected to facilitate between $25 billion and $30 billion in annual financing for local businesses, making it one of the most significant dedicated supply chain financing facilities ever deployed for smaller businesses in Africa.

The expected economic impact is substantial, as IFC research indicates that the platform could support the creation of over 480,000 direct jobs in Nigeria once fully operational, with a further multiplier effect on indirect employment.

This surge in stable employment is expected to drive consumer spending and stimulate demand across the local economy, potentially boosting Nigeria's GDP by 1% to 2%.

Mohamed Gouled, IFC’s Vice President for Products & Clients, noted that the platform represents a replicable model for the rest of the continent, turning unconvertible receivables into growth capital.

Alexander "Sandy" Kemper, Founder and CEO of C2FO, added that the Nigeria launch is a crucial milestone in their mission to ensure every business has the capital needed to thrive.