CredPal, a fintech startup that offers consumer credit, has raised $1.5 million in a recent funding round as it launches its credit cards.
The investors include Y Combinator, a startup accelerator that provides seed funding to early-stage startups which CredPal was accepted into in 2019; GreenHouse Capital, a fintech investment holding company; Tangerine Life, a digital insurance company; and other VC firms.
CredPal started its journey in 2018 with a simple yet efficient solution, providing point-of-sale consumer credit for lower-to-middle income earners in Nigeria.
As part of its raise, the startup plans to expand its products and geographic reach.
“We’re building the American Express of Africa and our goal is to make credit cards mainstream across Africa as is obtainable in the United States and other advanced economies. With this funding, the growing market demand for consumer credit and our recent product launch to solve these needs, we know that we’re on the right track’ the CEO and o-founder, Fehintolu Olaogun said.
Building on the success of its point-of-sale infrastructure, CredPal has maintained a stronghold in the consumer lending space and is rapidly growing, first with this funding and now the launch of its credit cards that are serving the needs of Nigerian customers.
Although credit cards are not a popular phenomenon in Nigeria, the co-founders believe that they have what it takes to drive adoption and usability in Nigeria venturing into the rest of the continent.