CredPal Raises $15M in Equity and Debt Funding. Airtel Nigeria Partners
Buy-Now-Pay-Later platform CredPal has raised $15m in equity and debt funding in a seed round to expand its consumer credit offerings in Nigeria and s spread to all of Africa.
Fehintolu Olaogun and Olorunfemi Jegede launched CredPal in 2018 to facilitate installment payments for individuals and businesses online and offline, for large and small items – from ₦2,000 up to ₦5 million.
In addition to providing an infrastructure that allows banks and other financial institutions to provide real-time consumer credit, Y Combinator-backed startup BNPL, which claims to have more than 85,000 active customers and more than 4,000 active merchants, offers its customers access to credit cards launched in November 2020.
The fund will allow the startup to expand its merchant partnerships through its recently rolled out CredPal Pay, an omnichannel merchant suite that allows businesses to seamlessly accept buy now, pay later. The POS infrastructure enables BNPL through a variety of means, including a credit payment link, a payment plugin, QR codes, and a transaction management system.
“Our commitment to improving credit facilities for African consumers and helping sellers increase their sales takes a huge boost with these final steps,” Olaogun said.
The latest funding brings the total funding raised by CredPal since its inception to $16.7 million, after raising $1.5 million in 2020, some of which was used to roll out its credit cards.
Existing investors such as Greenhouse Capital participated in the round. New investors included Uncovered Fund, LongCommerce, First Circle Capital and Adii Pienaar, co-founder and former CEO of WooCommerce.
CredPal’s funding announcement coincides with a new partnership with Airtel Nigeria to provide consumers across Nigeria with access to BNPL, allowing them own smartphones and broadband modems.
The fund will also support the startup’s planned expansion across Africa, starting with Kenya, Egypt, Ghana and Cameroon.