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.
Launched in 2018 by Fehintolu Olaogun and Olorunfemi Jegede, CredPal is a consumer credit platform that gives buyers the freedom to buy now and pay later, and helps merchants acquire more customers to increase sales.
The startup has over 85,000 active customers and over 4,000 onboarded merchants, and has now raise debt financing and a bridge round totalling US$15 million to scale further. Existing backers including Greenhouse Capital have participated in the bridge round, while new investors include Uncovered Fund, LongCommerce, First Circle Capital, and Adii Pienaar, co-founder and former CEO of WooCommerce.
Credit Direct Limited, a subsidiary of First City Monument Bank (FCMB), has provided the debt facility, along with a few other financial institutions.
CredPal will utilise the new funds to extend partnerships with merchants leveraging its recently deployed CredPal Pay, an omnichannel merchant suite that allows businesses of all sizes and categories 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 redefining the point-of-sale experience for online and offline merchants as well as consumers.
Additionally, the funds will support the company’s expansion across Africa, starting with Kenya, Egypt, Ghana, and Cameroon. The announcement also coincides with a new partnership with Airtel Nigeria to foster digital inclusion by allowing low and middle-income earners across Nigeria to access BNPL services to own smartphones and broadband modems.
“We are delighted to have the support of our investors and partners as we complete this fundraise. 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.