CredPal, a leading Nigerian fintech startup offering Buy Now, Pay Later (BNPL) solutions, has successfully raised $15 million in a mix of debt and equity funding. The capital will be used to expand the company’s operations across multiple African countries, including Kenya, Egypt, Ghana, and Cameroon.
Launched in 2018, CredPal’s BNPL service was initially aimed at Nigerian consumers, offering credit through both mobile apps and credit cards, which allow shoppers to make purchases and pay in installments. The platform has gained traction, particularly among the lower-to-middle-income demographic, and has now partnered with over 4,000 merchants, with about 600 of them being monthly active users.
The company’s BNPL model provides flexible repayment plans, ranging from 30 to 180 days, with interest rates between 4% and 9%. In some cases, customers can avoid paying interest if they repay within two months, a benefit funded by merchant fees.
CredPal’s approach stands out because it caters to both physical stores and e-commerce platforms. The company offers an omnichannel solution through CredPal Pay, a merchant suite that includes features like QR codes, checkout plugins, and transaction management systems. This versatility positions CredPal well to compete with other BNPL providers such as Sympl and PayLater, as well as large competitors like Tabby.
With the new funding, CredPal also plans to collaborate with Airtel Nigeria, enabling low-income consumers to purchase smartphones on installment plans. The debt portion of the funding comes from Credit Direct, a subsidiary of First City Monument Bank (FCMB), along with several other financial institutions.
As CredPal looks to expand its reach across the continent, it continues to grow its customer base and merchant partnerships, positioning itself as a key player in the African fintech landscape.
