CredPal to expand with a total $16.5m outlay
By Jeph Ajobaju, Chief Copy Editor
Fintech CredPal has raised $15 million to expand credit offerings through Buy Now, Pay Later (BNPL) option both online and at the point of sale (POS) from its base in Nigeria to other countries in Africa.
CredPal had first raised $1.5 million in 2020 to launch credit cards.
The new funding combines equity and debt round to support its expansion to Kenya, Egypt, Ghana, and Cameroon.
Debt financing was provided by Credit Direct, a subsidiary of First City Monument Bank (FCMB) and some unnamed financial institutions.
Greenhouse Capital, a fintech and embedded finance-focused venture capital firm, participated in the equity round.
New investors include Uncovered Fund, LongCommerce, First Circle Capital, and Adii Pienaar, co-founder and former WooCommerce Chief Executive Officer (CEO).
CredPal said it is looking to partner with telecom operator Airtel Nigeria to expand both its products and geography to widen the scope for middle-income earners to purchase smartphones in instalments.
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Omnichannel strategy
CredPal expressed on Twitter its excitement to have wrapped up the first quarter with news of additional funding.
CEO Fehintolu Olaogun explained how CredPal is positioned amid growing competition, saying one of the things that differentiate it from other fintechs is its omnichannel approach to BNPL.
“We’ve built out a merchant suite to cater to those who have like full-fledged e-commerce websites to those with brick and mortar store and social commerce merchants.
“We are merchants agnostic and also our tech allows consumers to be able to interface with CredPal across a wide range of channels,” Olaogun said, per Nairametrics reporting.
About CredPal
CredPal was launched in 2018 by Olaogun alongside Chief Operating Officer Olorunfemi Jegede to improve access to purchases by instalment for individuals and businesses.
The startup raised $1.5 million for credit cards launch and expansion in 2020 in a funding round.