Tech in Africa
Nigeria consumer credit startup CredPal just raised $1.5 million. The comes at a time when it prepares to launch a unique line of credit cards.
YCombinator was responsible for this funding round that provides seed funding to early-stage startups. The other investor was Greenhouse Capital another fintech investment venture capital company, among others. Having secured the funds, CredPal is now intent on expanding to other African markets.
Fehintolu Olaogun, CredPal’s founder and CEO attributes the market demand for credit as the inspiration behind their recent product launch. CredPal was started in 2018 by Olorunfemi Jegede and Fehintolu Olaogun who planned on offering POS consumer credit to low and middle-income earners across Nigeria.
Awards and investment
CredPal has been fortunate to win several awards accompanied by cash prizes. In 2018, CredPal clinched the Visa Everywhere Initiative for Sub-Saharan Africa winning a cash prize of US$25,000. The Enhancing Financial Innovation and Access (EFInA) Grant from the Bill and Melinda Gates Foundation, and now the San Francisco-based Y accelerator program.
Building on the success of their POS platform, CredPal would like to replicate this success with the launch of credit cards to Nigerian customers. The company further hopes to cement its position as the financial backbone of consumer credit across the continent.
