CycleFlow Unveils $30m Working Capital Platform, Says MSME Financing Gap Now Solvable

CycleFlow, a new nationwide working capital platform powered by global fintech firm C2FO and backed by a $30 million funding round from the International Finance Corporation (IFC), has officially launched in Nigeria with a bold promise to unlock affordable, technology-driven financing for millions of micro, small and medium enterprises (MSMEs) traditionally excluded from formal credit systems.

The platform enables MSMEs to convert approved accounts receivable essentially verified invoices from large, creditworthy buyers into immediate cash. This eliminates the need for collateral, lengthy loan processes, or additional Know Your Customer (KYC) verifications.

According to the Nigerian Economic Impact Projection report, supported by IFC data, the platform could facilitate between $25 billion and $30 billion in annual financing when fully scaled. That injection is projected to increase Nigeria’s Gross Domestic Product (GDP) by between one and three per cent.

Speaking at the launch in Lagos, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the initiative as transformative.

“CycleFlow represents an idea whose time has come. The financing gap crippling Nigeria’s micro, small and medium enterprises is not an immovable structural feature of our economy, but a solvable problem—one that technology, partnership, and political will, working in concert, can decisively address,” Edun said.

The minister, represented by the Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, commended C2FO and IFC for their commitment.

“I equally commend every stakeholder, from the anchor buyers who will drive demand on this platform, to the financial institutions that have committed to providing liquidity, to the Nigerian MSMEs who will be the primary beneficiaries and the true protagonists of this story,” Agama stated.

Meanwhile, the platform aims for a structural shift in supply chain lending through C2FO’s patented dynamic discounting technology, shifting the basis of lending from the credit profile of small businesses to the verifiable credit strength of large corporate buyers.

In terms of jobs, estimates show that for every $1 million disbursed, about 16.3 jobs could be created within two years. At scale, this translates to over 480,000 direct jobs, with a multiplier effect of three to five times, potentially exceeding two million indirect jobs across the economy.

Commenting, Minister of Industry, Trade and Investment, Jumoke Oduwole, noted that the initiative comes at a critical time.

“Access to capital has been the bane of over 14,000 SMEs in the country, and only a small fraction of these SMEs currently have little to no access to finance,” she said, adding that the platform could unlock growth opportunities across the sector.

On his part, Chairman of CycleFlow Limited, Segun Ogunsanya, said the initiative is designed to support MSMEs, which account for over 80 per cent of employment in Nigeria.

He revealed that making more capital available to MSMEs is good for everyone. Even as he reiterated that structural barriers such as lack of collateral, limited access to affordable financing, and lengthy banking processes have constrained MSME growth.

“But with our platform, we are addressing all these challenges. It allows corporates to give their suppliers access to view invoices that have been approved for payment and choose to accelerate them at a self-selected discount, with no hidden costs and no additional Know Your Customer verifications. Once accepted, a payment that was due in 30, 60, or 90 days is made immediately,” he averred.

According to him, the platform is designed to complement, not compete with, traditional financial institutions.

“We are not here to compete with banks, we can’t compete with banks. On the contrary, we have built this platform for banks and development finance institutions to extend financing to SMEs more effectively,” Ogunsanya said.

He added that the model leverages existing relationships between large corporates and SMEs to improve liquidity access.

“We’re leveraging the relationship between big buyers and SMEs to make money available to small businesses. In doing so, we are strengthening the SME ecosystem, improving access to finance, supporting growth, and driving real, measurable economic expansion across Nigeria,” he remarked.