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South African fintech startup Trade Shield has secured ZAR15 million (approximately US$820,000) in funding from First National Bank’s (FNB) Vumela Enterprise Development Fund, in partnership with Edge Growth. This investment aims to fuel Trade Shield’s expansion both within South Africa and internationally.
Established in 2023, Trade Shield offers a subscription-based platform that assists businesses in managing trade credit risk. The platform utilizes automated data collection, predictive modeling, and artificial intelligence-driven analytics to provide real-time insights. This enables companies to extend credit responsibly, increase revenue, and maintain stable debt ratios.
André Stürmer, chairman of Trade Shield, expressed appreciation for the continued support from Vumela, stating, “To date, Vumela has been a very supportive shareholder in Inoxico. Having them invest further in the growth of Trade Shield – with their extensive experience in the South African business landscape – confirms that we are doing something unique and special.” He emphasized the company’s commitment to aiding customers in revenue growth and profitability while promoting financial inclusion for small businesses by facilitating access to trade finance.
Sally Kitley, associate principal at Edge Growth, highlighted the significance of the investment, noting that Trade Shield’s innovative product offering significantly enhances customers’ credit management processes. She praised the management team’s expertise and the platform’s potential for substantial impact, stating, “The Trade Shield product demonstrates impact by showing how trade credit can unlock business growth. It is innovative, relevant, and value-adding to the businesses that use it.”
This funding marks a pivotal moment for Trade Shield as it seeks to scale its operations and further develop its technology-driven solutions for credit risk management. The investment underscores the growing interest in fintech innovations that address critical business challenges and support economic growth.
Read more on Tech Gist Africa:
Jem HR, a South African startup has closed a US$3.3 million pre-Series A funding round
Khula, a South African agri-tech startup has raised US$6.8 million
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