Nigerian FinTech buy now, pay later service CredPal has received an investment from the Cairo Angels Syndicate Fund (CASF).
This investment marks CASF’s first investment into Nigeria. CASF is an early-stage venture capital firm focused on the Middle East and Africa.
With the fresh funds, CredPal plans to expand across Africa, with a focus on Egypt, Kenya, Ghana and Cameroon.
CredPal, which launched in 2018, offers consumers a flexible payment option that spreads a payment across two to six months. There is also an option to pay in 30 days with 0% interest.
Some of the shops it supports include Adidas, LG, Burger King, Cake Hub, Precise, Sales366, Fixit 45 and many others.
CASF CEO Aly El Shalakany said, “Fehintolu and Olorunfemi have built an incredible FinTech platform that provides credit to thousands of underserved individuals and businesses in Africa and will be expanding rapidly to other key markets, including Egypt.
“BNPL has proven to be a successful business model that is a compelling alternative to traditional forms of consumer credit, especially in emerging and frontier markets where credit card penetration is very low and usually unavailable to the masses.”
CredPal previously raised $15m in a bridge funding round. It was supported by Greenhouse Capital, Uncovered Fund, LongCommerce, First Circle Capital and WooCommerce co-founder Adii Pienaar.
A number of Nigerian FinTech companies have raised capital this year. Auto insurance startup ETAP recently collected $1.5m in its pre-seed round. The company leverages machine learning to create risk profiles and generate accurate premiums for drivers.
It also leverages gamification by giving points for safe driving, which can be used to redeem shopping vouchers.
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