African start-up Kredete secures $22M funding to debut continent's inaugural stablecoin-supported credit card
Nigerian fintech startup Kredete has announced a successful Series A funding round, securing $22 million to fuel its expansion and innovative product offerings. The funding round was led by AfricInvest, with participation from Partech and Polymorphic Capital.
Kredete, which has already facilitated $500 million in remittances since its launch, is poised to make waves in the financial industry. The company's unique proposition lies in its ability to combine international money transfers with a proprietary credit-building engine, helping users raise their U.S. credit scores by an average of 58 points.
One of the key products Kredete is developing is Africa's first stablecoin-backed credit card. This card will enable users to spend globally, build credit, and avoid foreign exchange fees. Additionally, the company is working on creating the continent's largest aggregation layer of banks and wallets, aiming to make payouts cheaper and faster while giving businesses a single API to move money efficiently.
Khaled Ben Jilani, Senior Partner at AfricInvest, praised Kredete, stating that it is one of those rare startups solving challenges for both sides of the ecosystem. He believes that Kredete is solving complex problems for both consumers and payment operators.
The funding will be primarily used to launch the stablecoin-backed credit card and expand Kredete's credit-building infrastructure. As part of its growth strategy, Kredete plans to expand into markets in Canada, the UK, and key European markets.
Besides addressing the key bottlenecks faced by payment operators when moving money in and out of Africa, Kredete is also introducing tools to help immigrants with little or no credit history save, borrow responsibly, and protect their earnings. These tools include rent reporting, credit-linked savings, and access to foreign currency accounts to hedge against local currency volatility.
With over 700,000 monthly users, Kredete has already made a significant impact in the financial sector. The company's platform allows users to send money to over 30 African countries while improving their credit history abroad.
Kredete has also built an API-based infrastructure for businesses to make secure, real-time cross-border payments into Africa. This infrastructure will undoubtedly play a crucial role in facilitating the seamless flow of funds across borders, benefiting both businesses and individuals alike.
In a world where financial inclusion is a pressing concern, Kredete is at the forefront of providing innovative solutions. Its commitment to improving financial literacy, building credit, and facilitating seamless cross-border payments makes it a company to watch in the coming years.
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