Summary:

• Nigerian startup OnePipe, has secured a $4.8 million credit line from TLG Capital to scale its business, creating inventory financing for small shops.
• However, to manage finances, the startup has had to let go of 20% of its employees, with leadership taking pay cuts.
• OnePipe had previously raised $3.5 million in seed funding from several investors and currently holds over $800,000 in deposits with Silicon Valley Bank.

Nigerian financial service provider OnePipe has secured a credit line of $4.8 million from investment company, TLG Capital. The startup also laid off 20% of its employees while its leadership team took pay cuts.

According to a report from local daily newspaper ThisDay, the tech startup took advantage of the TLG Africa Growth Impact Fund (AGIF), which is the company’s 34th investment.

OnePipe CEO Ope Adeoye cited the startup’s desire to scale its business as the reason it chose to partner with TLG Capital. Its sights are set on creating inventory financing for small shops.

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A year ago, OnePipe raised a seed funding of $3.5 million from VC Atlantica Ventures, Tribe Capital and V&R Associate, alongside Canaan Partners, Saison Capital, Norrsken, Chris Adelsbach, Techstars, Ingressive Capital, Acquity, P1, Raba and DFS Lab.

However, despite these investments, both old and new, the startup had to make some financial cutbacks. TechCabal reports that it fired about 20% of its staff (or ten people).

In addition, its leadership team are going to see their salaries slashed. The departing employees will be paid two months of severance, according to details of their contracts.

“Sadly, we are also not immune to the broad industry dynamics and had to say goodbye to a handful of our colleagues yesterday. We are still reeling from the effects, I am sure you can imagine how devastating that can be for any founder or manager. The leadership team and I took a pay cut, not other members of the remaining team,” Adeoye said in a statement.

The layoffs and salary cuts coincide with news that OnePipe has over $800,000 in deposits in Silicon Valley Bank. Although, its deposit is secure per the promise by US financial regulators, so, it is not clear if the company is just acting proactively in anticipation of future tech industry happenings or something else.

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