Fehintolu Olaogun, on the left, and Olorunfemi Jegede, on the right, are the co-founders of CredPal.
According to a statement that was sent to TechCabal, Egypt's first network of angel investors made an investment of an undisclosed amount in the Nigerian fintech company CredPal on June 12. The statement was about the investment.
It was through the Cairo Angels Syndicate Fund (CASF) that Cairo Angels made its first investment in a Nigerian company. CASF is a micro venture capital fund that invests between $100,000 and $250,000 in post-seed and pre-series A startups across the Middle East and Africa.
CredPal is a buy now, pay later platform that was established in 2018 by CEO Fehintolu Olaogun and COO Olorunfemi Jegede. The platform enables businesses and individuals to make purchases in installments across both online and offline retailers by providing them with instant access to credit ( BNPL). CredPal claims that it has more than 85,000 active customers and that it works with more than 4,000 active merchants. Additionally, CredPal claims that customers can use the service to conduct transactions ranging from 2,000 to 5 million euros. CredPal also offers consumers credit cards, which enables them to access credit in a quicker and more effective manner.
By investing in CredPal, Cairo Angels has joined the ranks of other prominent investors such as Y-Combinator, Google, and Greenhouse Capital. According to the information provided on its website, Cairo Angel has contributed $2.8 million to 28 different startup companies located in 6 different cities across Africa and the Middle East.
CredPal is a pioneer in the African BNPL space, and according to data from Crunchbase, the company has raised a total of $16.7 million in funding. This includes $1.5 million to roll out its credit cards in 2020, and $15 million this March in a bridge round consisting of equity and debt to expand its consumer credit offerings to other key markets including Egypt, Kenya, Ghana, and Cameroon.
This investment is also evidence that the BNPL frenzy is picking up steam on the continent. This is likely the case because it has been difficult for African consumers to gain access to credit solutions that are both effective and long-term. This has resulted in the launch and success of BNPL solutions across the continent, such as PayJustNow in South Africa, CDCare and Carbon also in Nigeria, and Lipa Later and M-Kopa in Kenya.
With assistance from the Cairo Angels Syndicate Fund, we are able to strengthen our commitment to our mission of enhancing the standard of living of people in Africa by providing easy access to consumer credit. In a statement, Olaogun said, "My co-founder and I are very pleased to have them as investment partners and can't wait to see how much we'll achieve together."
" Our investment in CredPal, which is our first investment in the Nigerian market, is something of which we cannot be more proud. "Fehintolu and Olorunfemi have built an incredible financial technology platform that provides credit to thousands of individuals and businesses in Africa that are underserved, and they will be expanding rapidly to other important markets, including Egypt." Aly El Shalakany, the Chief Executive Officer of the Cairo Angels Syndicate Fund, said in a statement. " BNPL has proven to be a successful business model that is a compelling alternative to traditional forms of consumer credit, particularly in emerging and frontier markets where credit card penetration is very low and is typically unavailable to the masses. This is especially true in emerging and frontier markets where BNPL has been particularly successful.