Kredete, a financial software platform that enables African immigrants to build credit and send money back home, has raised $2.25 million in seed funding.
The round was led by BFF, with participation from notable investors including Techstars, Tezos Foundation, Polymorphic Capital, Launch Africa, Neer Venture Partners, SDF and DNA Fund. The round also saw contributions from angel investors who have supported successful payment ventures such as Wise and Western Union.
Kredete is focused on addressing a significant gap in financial services for African immigrants who often face challenges in building credit in their new countries while continuing to support their families back home.
The platform allows users to send money to over 20 countries with low fees, and each transaction contributes to their credit score in their new country. By leveraging a unique technology, Kredete offers an affordable and seamless solution that helps users establish a solid financial foundation in their new homes.
Kredete is transforming the routine necessity of sending money back home into a powerful tool for credit building. This practical application is making a tangible difference in the lives of African immigrants, allowing them to establish credit histories and integrate more effectively into the financial systems of their new countries. The platform’s innovative approach is a game-changer for African immigrant communities striving to establish themselves in new environments.
Since its launch, Kredete has experienced rapid growth, with its user base surpassing 300,000 and on average, users have seen their credit scores increase by 23 points within six months of using the platform, underscoring Kredete’s significant impact on financial inclusion.
Kredete’s leadership team plays a crucial role in its success. Adeola Adedewe, Founder and CEO of Kredete, emphasizes that the platform’s primary goal is to empower users to build a secure financial future, regardless of where they are migrating. Hakeem Oriola, the Chief Technology Officer, leads all engineering efforts, ensuring the platform’s technological foundation is robust and scalable. Chief Product Officer Ebuka Arinze drives product strategy and innovation, focusing on delivering cutting-edge financial solutions tailored for African immigrants. Fey Sowunmi, head of the Customer Experience team, ensures that every user interaction is seamless and intuitive, upholding Kredete’s commitment to exceptional service.
Looking ahead, Kredete aims to scale its money transfer services to all African countries, expanding beyond the 20 currently available. The platform also plans to introduce additional financial products tailored specifically for African immigrants in the diaspora, including credit cards, auto loans, and mortgage loans. Kredete’s long-term vision is to build a comprehensive financial ecosystem that meets the unique needs of African immigrants, helping them navigate and thrive in their new financial environments.
Kredete’s use of stablecoins significantly reduces transfer fees to less than a dollar, distinguishing it from traditional remittance services. This cost efficiency makes Kredete an attractive option for African immigrants seeking affordable and reliable money transfer services.
As Kredete continues to grow, it is poised to become a key financial service provider for African immigrants moving to North America. By simplifying the process of building credit and managing financial lives, Kredete is contributing to a more inclusive and equitable financial future.
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