Salad Africa partners with Glovo offering up to ₦100 million in loans to support SMEs
In a move to bridge the widening funding gap faced by small and medium-sized enterprises (SMEs) across Nigeria, Salad Africa, a Nigerian fintech specialising in embedded lending infrastructure, has partnered with Glovo Nigeria, a leading multi-category delivery platform, to launch a financing program offering loans ranging from ₦50,000 to ₦100 million to SMEs. This program is specifically tailored to support merchants operating within the Glovo ecosystem. With the aim of making financing more accessible and affordable compared to traditional banking institutions, these loans will help businesses scale faster, launch new products, and increase revenue. By removing the need for collateral and offering flexible repayment options, the initiative enhances financial inclusion for small businesses.
To access the loan, eligible Glovo partners (mostly small restaurants and shops) must have been active on the Glovo platform for at least three months and meet certain operational and performance standards. The eligibility process is data-driven as credit decisions are made using real-time sales data from the Glovo app, enabling fast and accurate lending without traditional paperwork. Unlike standard financial institutions, this program offers collateral-free loans. Once identified as eligible, merchants will receive a detailed notification to complete a Know Your Business (KYB) requirement and the next steps.
Upon successful KYB verification, funds are sent directly to the partners with loan repayments processed automatically as a percentage of future sales through the Glovo platform. This method ensures a quick and accurate lending process, removing many of the lending barriers that SMEs usually face when going through the traditional bank lending process.
Speaking on the development, Kolawole Adeniyi, Glovo Nigeria Head of Commercial, highlighted that the partnership allows Glovo to offer working capital directly within its ecosystem, removing traditional funding barriers and supporting merchants’ growth. Salad Africa’s CEO, Chikodi Ukaiwe, emphasised Salad’s reason for the partnership was to support the company’s mission which is to empower local businesses by providing fast and purpose-fit financing, leveraging embedded finance as a tool for unlocking new credit channels.
This financing initiative is part of Glovo Local, a global program dedicated to empower SMEs to thrive in the digital economy. Glovo local offers support such as marketing, training, visibility, and now, with this new partnership, financial services. The company serves SMEs in 23 countries, where they make up 90% of the businesses on its platform. Glovo is the only platform offering this kind of financing opportunity to SMEs across Europe, Africa and Central Asia. This reinforces its commitment to building sustainable and inclusive businesses.
Backed by Full Moon Equity Ventures and a part of TechStars Nigeria’s inaugural cohort, Salad Africa has helped around 1,500 SMEs access credit and scale operations since its inception in 2022. Initially offering earned wage access to employers across Africa, it has unlocked $1.5 million in credit value and reported a 453% growth in disbursed loans after pivoting its focus in late 2024 to providing embedded lending infrastructure for B2B marketplaces, providing digital loans to SMEs. This shift resulted in significant growth, with half of the company’s revenue generated in the last four months of the year and loan repayment rates accumulating at approximately 99%.
Glovo Local was launched in late 2023, eight years after the launch of Glovo, a multi-category app whose initial focus was on-demand courier services. Glovo Local, though, had a different focus, which was mainly for SMEs in the retail and restaurant industries, and it has since supported 90% of the shops and restaurants on its platform across 23 countries. The program also provides SMEs with access to marketing, training, order management, and financial services, making it the first in Europe, Africa, and Central Asia to offer such support. Through different partnerships like the one with Salad Africa, Glovo Local is helping small businesses overcome financial barriers, drive digital transformation, and grow sustainably within the digital economy.
This partnership between Glovo Local and Salad Africa represents a significant advancement in SME financing in Nigeria. It is redefining how small businesses access capital, promising a future where there is sustainable growth and financial inclusion for local SMEs.
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