Cairo Angels makes its first Nigerian funding in BNPL startup, Credpal

Egypt’s first community of angel traders introduced its funding on June 12 of an undisclosed quantity in Nigerian fintech firm CredPal, based on an announcement despatched to TechCabal. 

Cairo Angels’ funding, its first in a Nigerian firm, was made via the Cairo Angels Syndicate Fund (CASF), a micro enterprise capital fund that invests between $100,000 and $250,000 in post-seed and pre-series A startups throughout the Center East and Africa.

Launched in 2018 by CEO Fehintolu Olaogun and COO Olorunfemi Jegede, CredPal permits companies and people to make purchases in installments throughout on-line and offline retailers by offering them with immediate entry to credit score in a course of referred to as purchase now, pay later (BNPL). CredPal says that it serves over 85,000 lively clients and works with greater than 4,000 lively retailers, and that clients can use the service for transactions from ₦2,000 as much as ₦5 million. CredPal additionally offers shoppers with bank cards to entry credit score sooner and extra effectively. 

In making this CredPal funding, Cairo Angels joins the likes of Y-Combinator, Google, and Greenhouse Capital. Based on its web site, Cairo Angel has invested $2.8 million into 28 startups throughout 6 African and Center East cities. 

A pioneer within the African BNPL house, CredPal has raised a complete of $16.7 million in funding per Crunchbase knowledge, together with $1.5 million to roll out its bank cards in 2020, and $15 million this March in a bridge spherical comprising fairness and debt to develop its shopper credit score choices to different key markets  specifically Egypt, Kenya, Ghana, and Cameroon.

This funding additionally exhibits the BNPL frenzy is waxing robust on the continent, possible as a result of African shoppers have lengthy struggled to entry environment friendly and sustainable credit score options. This has led to the launch and success of BNPL options throughout the continent like Lipa Later and M-Kopa in Kenya; PayJustNow in South Africa; and CDCare and Carbon, additionally in Nigeria.

“This help from Cairo Angels Syndicate Fund reinforces our mission to enhance the standard of lifetime of Africans via easy accessibility to shopper credit score. My co-founder and I are more than happy to have them as funding companions and might’t wait for a way a lot we’ll obtain collectively,” Olaogun stated in an announcement. 

“We couldn’t be extra happy with our funding in CredPal, which is our first funding in Nigeria. Fehintolu and Olorunfemi have constructed an unbelievable FinTech platform that gives credit score to hundreds of underserved people and companies in Africa and might be increasing quickly to different key markets, together with Egypt.” Cairo Angels Syndicate Fund CEO Aly El Shalakany stated in an announcement. “BNPL has confirmed to be a profitable enterprise mannequin that could be a compelling various to conventional types of shopper credit score, particularly in rising and frontier markets the place bank card penetration may be very low and often unavailable to the lots.” 

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