CredPal, a Nigerian startup that provides Buy Now, Pay Later (BNPL) as a payment option, has raised $15 million in equity and debt funding to expand its consumer credit offerings across Africa.
With the new funding, the startup plans to extend partnerships with merchants through its recently deployed CredPal Pay, an omnichannel merchant suite that allows businesses seamlessly accept buy now, pay later. The point-of-sale infrastructure enables BNPL through various means, including a credit payment link, checkout plugin, QR codes, and a transaction management system.
The debt financing was provided by Credit Direct, a subsidiary of First City Monument Bank (FCMB) and a few unnamed 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.
Launched in 2018 by Fehintolu Olaogun (CEO) and Olorunfemi Jegede, CredPal allows individuals and businesses to pay for purchases in instalments across online and offline merchants, for both large and small-ticket items—from as low as ₦2,000 up to ₦5 million. CredPal claims to have over 85,000 active customers and more than 4,000 active merchants.
In addition to providing infrastructure that allows banks and other financial institutions to deliver consumer credit in real-time, CredPal offers its customers access to credit cards, which was launched in November 2020.
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.
Fehintolu Olaogun, CEO, CredPal 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.”
