Nigeria-based Kredete, a fintech startup that specializes in assisting African immigrants with credit score development and facilitating remittances, has successfully secured US$2.25 million in a seed funding round. This capital injection is set to bolster the company’s expansion efforts across Africa, where it has already established a presence in 20 countries.
Launched in 2023, Kredete offers a novel financial service that not only enables low-fee money transfers to over 20 countries but also allows these transactions to contribute to the user’s credit score in their new country of residence. Utilizing blockchain technology, Kredete provides an efficient and cost-effective method for immigrants to lay the groundwork for their financial stability abroad.
The platform has seen a swift uptake since its inception, amassing a user base of over 300,000 and facilitating transactions amounting to more than US$100 million. A significant testament to its efficacy is the average increase of 23 points in users’ credit scores within just six months of utilizing Kredete’s services, underscoring its contribution to enhancing financial inclusion.
The seed funding round that brought in US$2.25 million was spearheaded by Blockchain Founders Fund and saw contributions from an array of prominent investors, including Techstars, Tezos Foundation, Polymorphic Capital, Launch Africa, Neer Venture Partners, and DNA Fund. The round was also supported by angel investors with a history of investing in successful payment platforms such as Wise and Western Union.
With this new funding, Kredete is set to extend its remittance services to cover all African nations, surpassing the current count of 20. Moreover, the startup is poised to roll out a suite of financial products specifically designed for African immigrants living abroad, which will include credit cards, auto loans, and mortgage loans. Kredete’s vision is to forge a holistic financial ecosystem that caters to the distinctive needs of African immigrants, aiding them in successfully integrating into and prospering within new financial landscapes.
Adeola Adedewe, the founder and CEO of Kredete, emphasizes the company’s mission, stating;
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.
