CredPal, a Nigerian startup that provides Buy Now, Pay Later (BNPL) as a payment option, both online and at the point of sale, has raised $15 million in equity and debt to expand its consumer credit offerings across Africa.
The new funding is a combination of equity and debt round to support its expansion into other African markets, mainly Kenya, Egypt, Ghana and Cameroon.
The debt financing was provided by a few undisclosed financial institutions while Greenhouse Capital, a fintech and embedded finance-focused venture capital firm, participated in the equity round and new investors include Uncovered Fund, LongCommerce, First Circle Capital, and Adii Pienaar, co-founder and former CEO of WooCommerce.
It also said it is looking to partner with telecom operators, Airtel Nigeria in its bid to expand both product-wise and geographically to further allow low to middle-income earners to purchase smartphones in instalments.
What CredPal is saying
CredPal on its Twitter page expressed excitement to be wrapping up the first quarter with the news of the new funding.
Fehintolu Olaogun, CEO, CredPal, while explaining how CredPal is positioned amid the growing competition said one of the things that differentiate it from others is that it provides an omnichannel approach to BNPL.
He said, “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.”
What you should know
- The startup was launched in 2018 by Fehintolu Olaogun alongside COO, Olorunfemi Jegede to improve access to purchases by instalment for individuals and businesses.
- The startup had raised $1.5 million for credit cards launch and expansion in 2020 in a funding round.
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