CredPal is a fintech startup that started in 2008 with the goal of offering point-of-sale consumer credit to both low and middle class income earners in Nigeria.
The startup has gathered success over the years, it won an award with Visa Everywhere Initiative for Sub-Saharan Africa; they also got a grant from EFInA which is backed by the Bill and Melinda Gates Foundation; in addition the startup is an alumnus of the YCombinator accelerator program in San Francisco.
This week, they raised $1.5 million from YCombinator and Greenhouse Capital among other VC firms. With the funds, they plan to expand to other regions and also add to their product list.
“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 co-founder, Fehintolu Olaogun said.
The new products will include a CredPal credit card. Traditionally, cards are not popular in Nigeria, but CredPal hopes to change that. Their plan is to popularize the card in Nigeria before expanding to other regions.
“For a long while, we had demanded from our customers to offer services where they can access credit rather than just processing payments for them at the point-of-sale.” said Olorunfemi, COO, and co-founder.
He also added, “With our current raise and the launch of our credit cards, we’re confident about meeting these customers’ needs.”