CredPal announced its $1.5 million raise in a recent funding round. Y Combinator, notable for funding early stage startups, was responsible for this funding round. Other investors include Lagos-based fintech investment holding company, Greenhouse Capital; Tangerine Life, a digital insurance company; and others.
CredPal was founded in 2018 by Fehintolu Olaogun and Olorunfemi Jegede. It started with providing point-of-sale consumer credit to lower and middle-income earners in Nigeria. In 2019, it got accepted into Y Combinator and received $150k in the process. This year, the fintech company got accepted into Google’s Startup acceleration programme for Africa, a three-month-long programme.
Olaogun, CredPal’s founder and CEO, associated the market demand for credit as what inspired the recent credit card product launch. CredPal wants to replicate their success with their POS consumer credit platform with the launch and expansion of credit cards to Nigerian customers. To Olaogun, this new funding round provides just the firepower needed to do that.
In a country that is heavily cash driven like the majority of other African countries, CredPal is looking to drive credit cards adoption and usability. For Olaogun, this work begins with educating the average Nigerian youth and providing to them useful information on what credit cards are and why they are important.
Nigeria in Focus
Population: 202 million (2020)
GDP: 448.12 billion USD (2019)
GDP Per Capita: 2229 USD (2019)