Egypt-based VC fund The Cairo Angels Syndicate Fund (CASF) has invested an undisclosed amount in Y-Combinator and Google-backed Nigerian fintech CredPal.
This comes nearly three months after CredPal secured $15 million in equity and debt in a bridge funding round to scale its consumer credit offerings across Africa. The equity was provided by an existing investor, Greenhouse Capital and new investors including Uncovered Fund, LongCommerce, First Circle Capital, and Adii Pienaar, co-founder and former CEO of WooCommerce.
Launched in 2018 by Fehintolu Olaogun and Olorunfemi Jegede, CredPal is a buy-now-pay-later (BNPL) fintech that allows businesses and individuals to buy anything and pay for it in instalments with online and offline merchants.
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CASF, a micro venture capital fund that invests in early-stage startups in the Middle East and Africa, has been leading the way for local investors in the African tech ecosystem, dominated so far by foreign investors. This is CASF’s first investment in Nigeria.
Launched in 2018 by Fehintolu Olaogun and Olorunfemi Jegede, CredPal is a financial technology company that has developed an innovative solution that allows businesses and individuals to buy anything and pay for it in installments across online and offline merchants by providing them with instant access to credit at the point of checkout.
The startup provides a platform that facilitates users to set up their accounts and choose their payment plans leveraging technology to minimize risk and seamlessly connect to multiple financial institutions that provide credit for customers.
CredPal has over 85,000 active customers and more than 4,000 active merchants. The funding in this round will be used to expand across Africa with a focus on key markets, such as Egypt, Kenya, Ghana, and Cameroon.
“This support from Cairo Angels Syndicate Fund reinforces our mission to improve the quality of life of Africans through easy access to consumer credit. My co-founder and I are very pleased to have them as investment partners and can’t wait for how much we’ll achieve together” stated Fehintolu Olaogun, Co-Founder and CEO, CredPal.
Aly El Shalakany, CEO of the Cairo Angels Syndicate Fund, said, given Africa’s underserved BNPL market, CredPal has a great growth potential.
“We couldn’t be more proud of our investment in CredPal, which is our first investment in Nigeria. Fehintolu and Olorunfemi have built an incredible FinTech platform that provides credit to thousands of underserved individuals and businesses in Africa and will be expanding rapidly to other key markets, including Egypt.
“BNPL has proven to be a successful business model that is a compelling alternative to traditional forms of consumer credit, especially in emerging and frontier markets where credit card penetration is very low and usually unavailable to the masses,” he said.