In Nigeria, where access to business funding remains one of the biggest barriers for small enterprises, Lagos-based startup Supplya is stepping in to fill the gap by helping small and medium-sized enterprises (SMEs) source consumer goods directly from manufacturers, and pay later without interest.
Founded in 2021, the company has already provided over US$100,000 (N150 million) worth of interest-free credit to informal retailers and small business owners across Lagos and Ogun States, with plans to expand to six more states by the end of 2026.
“Capital is crucial to their operations,” said Joy Odeniran, Supplya’s Chief Operating Officer, in an interview. “We found that since we were already solving distribution, finding a way to financing wouldn’t be a big problem, so we started innovating around it.”
What is Supplya?
Supplya is a Nigerian technology startup that connects small retailers directly to manufacturers through a digital marketplace. Its goal is simple yet transformative, to eliminate the layers of middlemen that inflate prices and to provide retailers with flexible payment options.
The platform gives informal traders and shop owners the ability to order goods in bulk, have them delivered directly from producers, and delay payment without facing interest charges.
This model particularly appeals to informal retailers who struggle with high borrowing costs and lack of access to credit from commercial banks.
In an economy where small enterprises account for about 96% of all businesses and 84% of total employment, Supplya’s intervention is redefining how small-scale trade operates in Nigeria’s consumer goods sector.
Founding Story
The company was co-founded by Opeyemi Kehinde, who currently serves as CEO, after recognizing that the challenges facing SMEs in Nigeria went far beyond supply logistics.
Initially launched as a simple online marketplace connecting vendors and users, Supplya soon uncovered a deeper problem, many small businesses couldn’t maintain inventory due to lack of working capital.
Odeniran explained that Kehinde had already built strong relationships with hundreds of customers, while vendors and manufacturers were eager to participate.
This trust network became the foundation for an expanded business model that combined product sourcing with accessible, interest-free credit.
The company was bootstrapped from inception, starting with US$10,500 (N15.8 million) in grant funding, which supported early operations and product development.
How Supplya Works
Through its mobile app, retailers can browse a wide range of consumer goods from verified manufacturers and place orders directly. Once approved, Supplya delivers the goods to the retailers, who can then sell them in their shops and repay Supplya later, without any additional interest or financial penalty.
The model is built on trust, data analytics, and consistent trade history.
By monitoring customer purchase behavior and repayment patterns, Supplya manages its credit risk effectively while empowering small retailers with the working capital they desperately need.
This “buy now, pay later” system operates more like a credit extension model tailored to Nigeria’s informal retail economy rather than traditional bank loans.
Growth and Milestones
Since its launch in 2021, Supplya has achieved significant traction despite operating in a tough business environment. The startup has recorded over 3,000 app downloads and facilitated over US$100,000 in goods distributed through its interest-free credit model.
Currently active in Lagos and Ogun States, the company has ambitious plans to expand its footprint to six additional Nigerian states by next year, tapping into underserved markets where small retailers face the most severe financing challenges.
“There is a US$236 billion MSME funding gap in Nigeria, yet only 12.2 percent of the financing comes from banks,” Odeniran noted, emphasizing the scale of opportunity for financial inclusion and retail empowerment.
How Supplya Generates Revenue
Despite offering credit without interest, Supplya maintains a sustainable business model. According to Odeniran, product sales margins remain the company’s main source of income.
This means that Supplya earns a small percentage on each product sold through its platform. In addition, the company monetizes its platform by offering advertising space to manufacturers, allowing brands to promote their products directly to small retailers.
This dual-revenue structure ensures steady income while maintaining the core mission of easing access to goods and credit for small business owners.
It also aligns the company’s financial success with that of its customers, when retailers thrive, Supplya thrives too.
Why This Matters
Nigeria’s small business sector, home to over 39 million MSMEs, according to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), faces an enormous credit shortfall.
With a US$236 billion funding gap and most banks reluctant to lend to informal traders due to high risk and lack of collateral, millions of small businesses operate hand-to-mouth, unable to expand or restock efficiently.
By giving them a pathway to access goods and defer payment, Supplya addresses a critical bottleneck in Nigeria’s retail economy.
Its approach not only improves business survival rates but also strengthens local supply chains, enabling small enterprises to stay competitive in an inflation-prone market.
Odeniran sums it up best: “We found that since we were already solving distribution, finding a way to financing wouldn’t be a big problem.”
As Supplya scales to new regions, its model could offer a blueprint for inclusive commerce across Africa, one where access to goods and finance is democratized for the people driving the continent’s informal economy.
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