Kredete, a Nigerian financial software platform designed to support African immigrants in building credit and sending money back home, has announced the raise of $2.25 million in a seed funding round.
The round was led by BFF, with participation from other prominent investors such as Techstars, Tezos Found, Polymorphic Capital, Launch Africa, Neer Venture Partners, SDF, and DNA Fund. Angel Investors such as Wise and Western Union, also contributed in the round.
With the difficulty in getting credit in Africa, Kredete addresses this critical gap in financial services for African immigrants, who often struggle to establish credit in the diaspora, while maintaining financial ties to their families back home.
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The platform allows users to remit funds to over 20 countries with minimal fees, and uniquely, each transaction positively impacts the user’s credit score in their new country. By leveraging advanced technology, Kredete offers an affordable and seamless solution, helping users lay a solid financial foundation in their new environments.
The startup plans to scale its money transfer services to all African countries, expanding beyond the 20 currently on its list. It will also introduce additional financial products tailored specifically for African immigrants in the diaspora, including credit cards, auto loans, and mortgage loans. Long-term, Kredete aims to build a comprehensive financial ecosystem that meets the unique needs of African immigrants, helping them navigate and thrive in their new environments.
“Kredete is more than just a remittance service, it’s a gateway to financial inclusion for African immigrants in the diaspora. Our goal is to empower our users to build a secure financial future, no matter where they are migrating into”, said Adeola Adedewe, founder and CEO of Kredete.
One of Kredete’s key differentiators is its use of stablecoins, which significantly reduces transfer fees to less than a dollar, making it a cost-effective alternative to traditional remittance services. This efficiency positions Kredete as an attractive option for African immigrants seeking reliable and affordable money transfer services.
Since its inception, Kredete has continued to experience remarkable growth, with its user base surpassing 300,000. In April 2023, the company launched its AI-powered lending platform to increase access to formal credit, financial literacy, and innovative financial solutions.
The company has formed a strategic partnerships with over 25 financial institutions, including the largest African-based credit bureau, CRC Credit Burèau, and has secured funding from prominent investors, including being backed by Techstars, a renowned startup accelerator powered by J.P. Morgan. It is also trusted by prominent partners which include First Central, Mono, Techstars, Page, and Providus Bank.
As Kredete continues to expand its services across Africa, it also plans to introduce financial products tailored to the needs of African immigrants, creating a comprehensive financial ecosystem that supports their unique challenges and aspirations.