Nigerian consumer credit startup CredPal has raised a US$1.5million funding round as it launches its range of credit cards.
Launched in 2017 by Fehintolu Olaogun and Olorunfemi Jegede, CredPal develops consumer credit infrastructure to ease consumer credit purchase and enable retail businesses to provide on-demand credit for consumers.
The startup, a graduate from the Silicon Valley-based Y Combinator accelerator that also took part in the Google Launchpad programme this year, has now raised funding to allow it to expand its product range and geographic reach.
The investors include Y Combinator and GreenHouse Capital, a fintech investment holding company, as well as a digital insurance company and some other VC firms. It is starting the process of expanding by making credit cards available to customers.
“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,” Olaogun said.
The company sees itself mainstreaming credit cards for the average employed Nigerian.
“With this funding, we’re working on ways to provide more information and education about credit cards, the value of owning one and the benefits that come with it. We are obsessed with the desire to see that working professionals no longer have a thing to worry about as it concerns dealing with their financial needs, a world in which every working person is rewarded with a CredPal card that has their back. A world in which they can embrace life today and live more,” Olaogun said.