Africa’s credit infrastructure has long lagged behind global standards, primarily due to limited credit coverage by its bureaus. According to the World Bank, only 11% of Africa’s population has their credit data recorded by private credit bureaus, and merely 17% of banked individuals have accessed loans.
This gap underscores the need for a more robust credit ecosystem. As financial services across the continent continue their digital transformation, providing real-time credit access has become increasingly critical. However, overhauling the credit bureau system is a monumental task. To address this, platforms offering credit underwriting infrastructure are emerging as viable alternatives. One such platform is Indicina, a Lagos-based startup that recently secured $3 million in seed funding.
The round was led by Berlin-based Target Global, which has previously invested in other Nigerian startups like Kuda and Kippa. Greycroft and RV Ventures also participated in the round, signaling strong international interest in Africa’s fintech sector. With this funding, Indicina aims to enhance its offerings and expand its footprint across the continent.
Addressing Gaps in Africa’s Credit Market
While large corporations and affluent individuals in Nigeria often have easy access to loans, retail customers and small businesses are frequently overlooked.
Indicina was founded in 2019 by Yvonne Johnson, leveraging her experience as a former executive at one of Nigeria’s largest banks. Recognizing the challenges small businesses and individual borrowers face, she set out to create a solution that bridges this gap.Indicina provides credit underwriting tools and financial analytics powered by machine learning.
Its platform offers credit scoring and sentiment analysis, helping lenders make better-informed decisions while managing risk on unsecured loans. This infrastructure also allows lenders processing loans manually to significantly increase their volumes without expanding their loan books disproportionately.
A New Era of Lending
“We’ve never aimed to offer credit ourselves. Instead, our focus is on providing the infrastructure that empowers lenders to make more confident decisions and launch their digital products more quickly,” Johnson explained. Indicina partners with credit bureaus and open finance platforms, working with over 120 clients, including banks, fintechs, and non-bank lenders. Notable clients include Polaris Bank, LipaLater, VFD, Zilla, and CreditDirect. The platform has facilitated over ₦3 billion (~$5 million) in loans and processed more than 10,000 bank statements.Indicina generates revenue through API calls made by its clients for analyzing financial documents. To diversify its offerings, the company plans to launch a consumer-facing product that will provide users with insights into their creditworthiness. “We want consumers to see what lenders see when they apply for a loan,” Johnson said. This tool aims to empower individuals to manage their financial health more effectively.
Expanding Across Africa
With operations in Nigeria and Kenya, the newly raised funds will enable Indicina to enter additional African markets. The funding will also support the development of consumer credit recommendation tools and further enhance the company’s machine learning capabilities.“Our focus on data science and machine learning is at the core of what we do,” Johnson emphasized. To that end, Indicina plans to grow its team of data scientists and engineers while enhancing its existing products to serve a broader audience.
A Promising Future
Indicina’s innovative approach highlights the vast potential for digital solutions in Africa’s financial landscape. By addressing critical gaps in credit access and providing advanced tools for lenders and consumers alike, the company is poised to drive significant change in the region’s credit ecosystem.As the digital transformation of financial services accelerates across Africa, platforms like Indicina are paving the way for a more inclusive credit market, opening up opportunities for millions of underserved individuals and businesses.
