Whats Happening?
Shoptreo, an innovative fintech and e-commerce platform based in Aba, Abia State, has secured an undisclosed investment from Rebel Seed Capital, marking the fund’s second investment in the southeastern Nigerian city.
The investment comes as Nigeria’s leather industry demonstrates significant untapped potential, with the Nigerian Institute of Leather and Science Technology (NILEST) estimating the sector’s capacity to contribute over $17.5 billion annually to Nigeria’s GDP with adequate support, according to Science Nigeria.
Targeting Africa’s Prominent Leather Manufacturing Hub
The startup, co-founded by George Uteh and Emmanuel Jacobs, is positioned to transform one of Africa’s largest artisanal leather manufacturing clusters by providing digital infrastructure and financial services to local craftsmen and distributors.
The Aba Leather Cluster comprises over 100,000 shoemakers and produces around one million pairs of shoes weekly, demonstrating the scale of the manufacturing ecosystem Shoptreo aims to digitize.
Long-Term Vision Backed by Historical Engagement
Uche Aniche, General Partner at Rebel Seed Capital, detailed the investment rationale in a LinkedIn announcement, drawing from nearly eight years of engagement with the Aba manufacturing ecosystem. His involvement began in 2017 with an “obsession with unlocking value in the Aba Artisanal Leather Cluster.”
This commitment led to multiple initiatives including hosting StartupSouth3 in Aba, organizing the Aba Tour, and later the “Proudly Made in Aba” Hackathon in partnership with TBWA Nigeria and sponsored by Ford Foundation, which distributed $100,000 in cash prizes.
“Aba is not just a place. It’s a force. A factory of grit, of dreams stitched in leather and sweat,” Aniche stated in announcing the investment.
Addressing Systemic Market Challenges
These initiatives revealed persistent challenges within the cluster that Shoptreo now aims to address: inadequate standardization despite high-quality production, limited brand confidence among artisans who often replicated foreign designs instead of building original brands, poor market visibility that led consumers to undervalue locally-made goods while paying premiums for similar items repackaged abroad, and insufficient digital tools for scaling operations to meet global demand.
The challenges are particularly significant given Nigeria’s position in the global leather trade. Between January and March 2022, Nigeria tanneries exported raw hides, skins and furskins valued at N4.838 billion, yet much of the value-added processing occurs elsewhere, limiting local economic benefits.
Shoptreo Comprehensive Digital Solution
Shoptreo’s platform addresses these systemic issues by providing artisans with integrated digital storefronts, logistics management, payment processing, and inventory tracking tools designed to facilitate global market access. Beyond traditional marketplace functionality, the company offers strategic inventory financing to trusted distributors and bulk buyers, addressing cash flow constraints that often prevent scaling.
“They’re not just building a platform. They’re building a bridge between Aba’s genius and the world,” Aniche noted, adding that had Shoptreo existed in 2018, he believes “they would’ve taken home the $50k top prize” from the hackathon.
The platform’s approach of combining fintech innovation with grassroots manufacturing support aligns with trends toward financial inclusion for underserved populations. By targeting informal markets and production ecosystems often overlooked by traditional financial institutions, Shoptreo aims to create wealth opportunities for previously excluded artisan communities.
Rebel seed Investment Philosophy and Secondary Cities Focus
For Rebel Seed Capital, the Shoptreo investment reflects their stated focus on supporting ventures in venture capital-underserved secondary cities. The firm emphasized that Shoptreo fits within their mandate of backing founders who demonstrate exceptional execution capabilities while solving local problems and creating economic opportunities for underserved populations.
The funding is expected to accelerate Shoptreo’s expansion of digital infrastructure, enhance financial services offerings, and support broader market penetration both within Nigeria and across the African continent.
