Africa-Press – Botswana. Kredete, a financial platform that empowers African immigrants to build credit while sending money back home, has secured $22M in a Series A funding round. This round was led by AfricInvest Group, with investment through its Cathay AfricInvest Innovation Fund (CAIF) and the Financial Inclusion Vehicle (FIVE). Additionally, the round saw participation from existing seed investor Partech and new investor Polymorphic Capital.
Founded in 2022 and based in Nigeria, Kredete addresses two significant challenges faced by the African diaspora: the high cost of remittances and the difficulty of building a credit history in a foreign country. The company’s platform allows users in North America and Europe to send affordable payments to Africa, while simultaneously using their transaction history to report positive payment data to credit bureaus in their country of residence.
Kredete plans to use the fresh funding to scale its operations, expanding from 20 to over 40 countries across Africa and to further enhance its financial infrastructure.
Traditional remittance services are often costly and fail to help immigrants build a financial footprint in their new countries, limiting access to essential financial products such as car loans, credit cards, and mortgages. Kredete’s model changes this dynamic by processing remittances using stablecoins, reducing transfer fees to less than a dollar per transaction. In addition, the platform collaborates with credit bureaus to report these regular payments, allowing users to establish a verifiable credit history.
Since raising $2.25M in its seed round in August 2024, Kredete has expanded its user base to over 300,000. The company reports that active users have seen an average increase of 23 points in their credit scores within six months of using the platform.
“As millions of immigrants regularly send money home, it has always been a non-negotiable part of their financial lives,” said Adeola Adedewe, founder and CEO of Kredete. “This regular payment demonstrates creditworthiness but has never been recognized until now. We’re making these payments count, transforming a routine act of support for family into a tool to build a secure financial future.”
For investors, Kredete presents an opportunity to tap into the enormous global remittance market while promoting financial inclusion. The combination of a high-growth fintech platform and tangible social impact makes Kredete an appealing proposition. The involvement of prominent pan-African and European venture capital firms, such as AfricInvest and Partech, reflects confidence in the company’s ability to navigate complex cross-border financial regulations and scale effectively.
With its Series A funding, Kredete intends to accelerate its expansion across Africa. The company also plans to broaden its product offering beyond credit-building remittances. Future developments include the introduction of financial products tailored for the diaspora, such as credit cards, auto loans, and mortgages, which will directly leverage the credit histories users have built on the Kredete platform. This strategy positions Kredete to become a comprehensive financial services provider for African immigrants.
Kredete, a financial platform designed to help African immigrants build credit while sending money back home, has successfully raised $22 million in a Series A funding round.
The funding round was led by AfricInvest Group, which contributed through its Cathay AfricInvest Innovation Fund (CAIF) and Financial Inclusion Vehicle (FIVE). Existing seed investor Partech, along with new investor Polymorphic Capital, also participated in the round.
Launched in 2022, Nigeria-based Kredete addresses two key challenges faced by the African diaspora: the high costs of remittances and the difficulty of establishing a credit history in a new country. The platform allows users in North America and Europe to send cost-effective payments to Africa while utilizing those consistent transactions to report positive payment data to credit bureaus in the user’s country of residence.
The new capital will be used to scale Kredete’s operations from 20 to more than 40 African countries, while enhancing its core financial infrastructure.
Traditional remittance services often involve high fees and fail to help immigrants establish a financial footprint in their new country. This limitation can make it difficult for immigrants to access key financial products, such as car loans, credit cards, and mortgages.
Kredete aims to address this issue by offering a solution that leverages stablecoins to process remittances, reducing transaction fees to less than a dollar per transfer. The company then collaborates with credit bureaus to report these regular payments, helping users build a recognized credit history.
Since its initial $2.25 million seed funding round in August 2024, Kredete has expanded its user base to over 300,000. The company claims that active users have seen their credit scores rise by an average of 23 points within just six months of using the platform.
“As millions of immigrants regularly send money home, it’s a non-negotiable part of their financial lives. These are consistent payments that demonstrate creditworthiness, yet they’ve never been recognized,” said Adeola Adedewe, founder and CEO of Kredete. “We are changing that by making these payments count, turning a routine act of supporting family into a tool for building a secure financial future.”
For investors, Kredete offers a unique opportunity to tap into the massive global remittance market while promoting financial inclusion. The platform’s high growth potential, combined with its tangible social impact, presents a compelling proposition. With the backing of pan-African and European venture capital firms such as AfricInvest and Partech, Kredete has proven its ability to navigate the complexities of cross-border financial regulations and scale effectively.
With the funds from the Series A round, Kredete is poised to accelerate its expansion across the African continent. Beyond growing its core remittance business, the company plans to diversify its offerings, launching financial products tailored specifically to the diaspora. These products may include credit cards, auto loans, and mortgages, which will be directly tied to the credit histories users build through Kredete. This strategic move will position the platform as a comprehensive financial services provider for African immigrants, offering an integrated suite of products to meet their unique needs.
In addition to its plans to expand across Africa, Kredete is working to build strategic partnerships with financial institutions in other regions. By doing so, the company aims to bridge the gap in financial services for African immigrants, supporting them in their journey to achieving financial stability and growth.
Through these initiatives, Kredete intends to transform how African immigrants engage with financial systems, empowering them with better access to affordable financial products and services that improve their lives and the lives of their families.
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