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Tuesday, December 6, 2022

DEAL: Nigerian startup, CreditChek, raises $240,000 in pre-seed round

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Nigeria’s credit score evaluation startup, CreditChek stated it has raised $240,000 in a pre-seed funding spherical. This funding, the corporate stated can be used to drive its imaginative and prescient of turning into essentially the most dependable credit score infrastructure in Africa within the subsequent 5 years, fostering belief between lenders and debtors.

The funding was led by Atom Capital with participation from Aidi Ventures, Ham Serunjogi of Chippercash, Olumide Ogunsanwo of Adamantium Fund, Damola Adegboyega of Meeting Buyers, Isaac Ewaleifoh of Launch Africa Ventures, and Ogundiran Kayode.

CreditChek makes use of structured, user-permissioned knowledge from a number of sources to create highly effective Identification, credit score and verification companies that empower fintechs, banks, microfinance establishments, retail companies and cellular cash operators to construct higher monetary merchandise for the underserved.

What they’re saying

  • Asserting the fundraising, CreditCheck co-founder, Kingsley Ibe, stated: “In April 2022, we launched our MVP in beta, testing with just a few companies and making iterations. Whereas in Beta, we onboarded 30 companies, processed 1000’s of API calls, and ultimately got here out of Beta in June 2021.”
  • “As coconut heads; we proceed to be cussed on our imaginative and prescient as monetary inclusion advocates however versatile on our mission. Our imaginative and prescient is to be essentially the most dependable credit score infrastructure in Africa within the subsequent 5 years, fostering belief between lenders and debtors. In furtherance of that imaginative and prescient, we’re happy to announce that we’ve raised $240,000 in pre-seed funding led by Atom,” he added.
  • Explaining the position of CreditCheck within the economic system, Ibe cited knowledge from the Nationwide Bureau of Statistics, which confirmed that in 2018, monetary establishments misplaced over $4B to persistent mortgage defaulters.
  • “In Kenya, an estimated 3.2 million individuals — 6% of the inhabitants, have been blacklisted on Kenya’s TransUnion credit score reference bureau for non-repayment of digital credit score loans. In Nigeria, it isn’t uncommon to listen to of consumers who take loans from 3 to five lenders concurrently after which disappear into skinny air. These types of audacious schemes and a normal unwillingness of consumers to pay loans proceed to overwhelm lenders.”
  • That is largely as a result of current credit score bureaus have a excessive barrier to entry and are due to this fact inaccessible to the typical Nigerian enterprise. Most low-income customers aren’t captured within the formal banking system; therefore restricted historic knowledge on underbanked customers.
  • “So, we pivoted to constructing the credit score evaluation infrastructure for lending companies in Africa. A platform that can allow each digital and conventional leaders reliably confirm identification and assess the creditworthiness of potential clients,” he stated.

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