Nigerian digital banking platform, Kredete, has raised $2.25 million in seed funding to help it further scale across the continent.
Key Takeaways
- Kredete has raised $2.25 million in seed funding round led by Blockchain Founders Fund
- Kredete leverages blockchain technology to enable African immigrants to build credit and send money home with low fees, offering a dual benefit that addresses significant financial integration challenges for immigrants
- Since its launch, Kredete has rapidly grown to over 300,000 users and facilitated more than $100 million in transactions
The round was led by:
- Blockchain Founders Fund, with participation from notable investors including
- Techstars
- Tezos Foundation
- Polymorphic Capital
- Launch Africa
- Neer Venture Partners, and
- DNA Fund
The round also included contributions from angel investors who have backed successful payment ventures like:
- Wise, and
- Western Union
Kredete leverages blockchain, letting users send money to over 20 countries with low fees, and each transaction contributes to their credit score and history in their new country.
According to Amar Odedra, Head of VC at Trilitech, Tezos R&D Hub:
“Kredete is transforming a routine necessity – sending money back home – into a powerful tool for credit building. This practical application of blockchain technology is making a real difference in the lives of African immigrants, allowing them to establish credit histories and integrate more effectively into the financial systems of their new countries.
The platform’s innovative approach is a game-changer for African immigrant communities striving to establish themselves in new environments.”
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This dual benefit system utilizes blockchain technology to streamline transactions and reduce costs, a critical advancement for immigrants who face the dual challenge of integrating financially into a new environment while supporting families back home. With its innovative use of crypto rails and stablecoin to reduce transfer fees to less than a dollar, Kredete stands out as a more affordable and reliable alternative to traditional remittance services.
“Kredete is more than just a remittance service; it’s a gateway to financial inclusion for African immigrants in the diaspora,” said Adeola Adedewe, founder and CEO of Kredete.
“Our goal is to empower our users to build a secure financial future, no matter where they are migrating into.”
Since launching in 2023, the startup has seen rapid growth, with its user base surpassing 300,000 and transaction volumes exceeding $100 million. On average, users have seen their credit scores increase by 23 points within six months of using the platform, highlighting its impact on financial inclusion.
With the new funding, the startup intends to expand its money transfer services across all African countries, growing beyond the 20 it currently serves. Additionally, it plans to offer more financial products designed specifically for African immigrants in the diaspora, such as credit cards, auto loans, and mortgage loans.
In the long run, Kredete aspires to create a complete financial ecosystem tailored to the unique needs of African immigrants, aiding them in adapting to and succeeding in their new financial landscapes.
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