Nigerian “buy now, pay later” (BNPL) startup CredPal has raised US$15 million in funding to expand its consumer credit offerings in Nigeria and scale across Africa.
Fehintolu Olaogun & Olorunfemi Jegede started it in 2018. CredPal the platform allows consumers to purchase now and pay later, and it also gives merchants the opportunity to gain more customers in order to increase sales.
The startup now has more than 85,000 customers and more than 4,000 merchants onboarded. It has raised US$15 million in debt financing to help it scale. Greenhouse Capital was one of the existing investors. Uncovered Fund, LongCommerce and First Circle Capital were new investors. Adii Pienaar is co-founder and former CEO for WooCommerce.
Credit Direct Limited, a subsidiary First City Monument Bank (FCMB), provided the debt facility along with other financial institutions.
CredPal will use the funds to expand partnerships with merchants leveraging its newly deployed CredPal Pay. This omnichannel merchant suite allows all types of businesses to seamlessly BNPL. CredPal Pay serves as a point-of-sale infrastructure that enables BNPL through various means – a credit payment link, checkout plugin, QR codes, and a transaction management system. This suite is changing the way consumers and online merchants experience point-of-sale.
Additionally, the funds will support the company’s expansion across Africa, starting with Kenya, Egypt, Ghana, and Cameroon. Airtel Nigeria announced a partnership to promote digital inclusion. This partnership allows low- and middle-income Nigerians to have access to BNPL services, which will allow them to purchase smartphones and broadband modems.
“We are delighted to have the support of our investors and partners as we complete this fundraising. Our commitment to better credit facilities for African consumers and helping sellers grow their sales is getting a huge boost with these latest milestones,” said Fehintolu Olaogun, CredPal’s CEO and co-founder.
“The growth of retail in emerging markets like Sub-Saharan Africa has been phenomenal, and with what CredPal is building where merchants can expand their payment options through consumer credit, I’m positive that the company will further drive e-commerce enablement in Africa,” said Pienaar.