Trade Shield secures R15m in funding from FNB's Vumela Fund

Trade Shield helps businesses manage trade credit risk through automated data collection, predictive modelling, and AI-driven analytics. By providing real-time insights via a subscription-based platform, it enables businesses to extend credit responsibly, boost revenue, and maintain stable debt ratios. Originally developed by Inoxico, a Vumela-backed company since 2020, Trade Shield has emerged as a testament to Inoxico’s success in building innovative risk management solutions for businesses across Africa. While Trade Shield focuses on AI-powered credit assessments, Inoxico continues to operate as a traditional credit bureau, offering various risk management services on a pay-per-use or retainer basis.

The Vumela Fund was established in 2010 as a collaboration between FNB Business Banking and business development specialist Edge Growth to provide growth capital to black-owned SMEs. As a pioneering fund in South Africa, its objective is to invest in high-growth small and medium enterprises to support their development and expansion.

"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," says Trade Shield chairman, André Stürmer. "At Trade Shield, we pride ourselves not only on helping our customers grow revenue and improve profitability but also on driving financial inclusion for small businesses by giving them access to trade finance."

Headquartered in Johannesburg, South Africa, Trade Shield employs approximately 45 trade credit experts, data scientists, software developers, sales executives, and customer support staff.

"Trade Shield is an exciting business with a relevant and novel product offering that radically improves its customers’ credit management processes. They have an impressive management team, deep industry knowledge, and an innovative approach that is supported by a market with strong tailwinds. We are excited about the growth that our funding unlocks," says Sally Kitley, associate principal at Edge Growth. "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."

Mike Sage, an FNB Vumela Trustee, commented: "Our participation in this funding round was to help Trade Shield unlock additional business value and growth potential. Trade credit is an integral part of the funding ecosystem, which we believe is a catalyst for economic growth in our country."