$15 M funding raised by Nigeria’s CredPal to scale “buy now, pay later” across Africa

CredPal, a Nigerian “buy now, pay later” (BNPL) firm, has secured $15 million in venture capital to grow its consumer credit solutions in Nigeria and spread across Africa.

CredPal, founded by Fehintolu Olaogun and Olorunfemi Jegede in 2018, is a consumer credit platform that allows buyers to buy now and pay later while also assisting businesses in acquiring more consumers and increasing sales.

The firm, which has over 85,000 active users and 4,000 onboarded merchants, has now raised a total of US $15 million in debt funding and a bridge round to help it go even further. The bridge round included existing supporters such as Greenhouse Capital, as well as new investors such as Uncovered Fund, LongCommerce, First Circle Capital, and Adii Pienaar, co-founder and former CEO of WooCommerce.

The debt facility was given by Credit Direct Limited, a subsidiary of First City Monument Bank (FCMB), as well as a few other financial institutions.

CredPal plans to use the fresh funding to expand its merchant partnerships, utilising CredPal Pay, an omnichannel merchant suite that allows companies of all sizes and industries to integrate BNPL. CredPal Pay is a point-of-sale system that allows BNPL to accept credit cards via a credit payment link, a checkout plugin, QR codes, and a transaction management system. For both online and offline retailers, as well as customers, this suite is revolutionising the point-of-sale experience.

The funding will also help the firm expand across Africa, beginning in Kenya, Egypt, Ghana, and Cameroon. The announcement is timed to coincide with a new collaboration with Airtel Nigeria to promote digital inclusion by allowing poor and middle-income Nigerians to use BNPL services to purchase smartphones and internet modems.

“We are delighted to have the support of our investors and partners as we complete this fundraising. 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.