The International Finance Corporation (IFC) is considering an equity investment of up to $4 million in Gigmile Technologies Ltd, a Nigerian financial technology company providing lease-to-own financing for commercial vehicles.
The proposed investment would form part of Gigmile’s Series A funding round and support its expansion in Nigeria and Ghana, according to an IFC project disclosure seen by CrowdFund Insider.
Gigmile finances two-wheeler and three-wheeler vehicles used by drivers, logistics operators, and other micro-entrepreneurs for passenger transport and e-logistics. Its lease-to-own model allows customers to generate income from the vehicles while working toward ownership.
The company targets customers who have limited access to productive-asset financing from traditional lenders.
IFC said the investment would provide Gigmile with an alternative source of finance and allow it to expand its vehicle-lending operations across its two markets. IFC has not disclosed the overall size of the Series A round or identified the other participating investors.
The investment remains under consideration and is subject to the development finance institution’s approval processes.
Gigmile operates primarily in Nigeria and has a smaller presence in Ghana. Its shareholders include co-founders Kayode Adeyinka and Samuel Esiri, as well as institutional and angel investors.
Existing institutional backers include Enza Capital, Techstars Accelerators and Seedstars Ventures.
The proposed transaction has a clear financial-inclusion component, addressing the financing gap faced by micro, small and medium-sized enterprises in Nigeria and Ghana.
Commercial drivers and logistics operators often struggle to obtain loans because of limited credit histories, inadequate collateral or the underwriting requirements of conventional lenders.
Gigmile’s platform offers an alternative by financing income-generating assets through a vertically integrated, full-stack lease-to-own model.
IFC expects its investment, alongside commitments from other Series A investors, to help demonstrate the commercial viability of that model.
The institution said Gigmile’s expansion could encourage other lenders to develop competing vehicle-financing products, increasing innovation and competition in Nigeria and Ghana.
IFC said its participation could also mitigate perceived non-commercial risks and provide comfort to prospective investors evaluating the company’s ability to scale.
As part of the proposed investment, IFC would work with Gigmile to strengthen its environmental, social and governance standards. It would also support improvements in anti-money laundering and counter-financing of terrorism controls and responsible-lending practices.
These measures are intended to position the company for sustainable growth and future investment from institutional investors.
The potential financing highlights a growing area of African fintech in which digital platforms extend credit beyond consumer loans and payments to income-producing assets.
By linking financing directly to commercial vehicles, lease-to-own providers can serve customers overlooked by banks while tying repayment capacity to an asset used to generate revenue.
The model nevertheless carries risks, including vehicle depreciation, borrower defaults, maintenance costs and the financial pressure placed on drivers if their earnings fall below expectations.