Kredete raises $22 million to fuel expansion efforts

Kredete, the African fintech and cross-border remittance firm has announced that it has raised $22 million in a Series A funding round. 

The fundraiser will power the company’s plans to expand into other offshore markets, including Canada, the United Kingdom and other parts of Europe. 

Fast facts 

• In a blog post on its website, Kredete announced that the Series A funding round was led by African investment firm AfricInvest with support from Partech and Polymorphic Capital. 
• This brings the company’s total funding to $24.75 million after it raised $2.25 million in August last year. 

Dive deeper 

• Kredete launched in 2023 as a stablecoin-based remittance platform to help African immigrants send money home and build creditworthiness while at it. 
• The firm tracks financial activity mostly through remittances and uses the information to build credit scores for users, allowing them to access other financial services in their country of residence. 
• With the new raise, Kredete plans to launch new features, including rent reporting and credit-linked savings plans.
• This is alongside its stablecoin-backed credit card usable in more than 40 African countries, which it launched in May, earlier this year. 
• The remittance platform says more than 700,000 people use its services monthly, and it has facilitated $500 million in remittances while raising its users’ credit scores by 58 points on average. 

Key quotes 

• Kredete’s CEO Adeola Adedewe said: 

“Our vision is simple: if you support your family financially, that should count toward your creditworthiness. We’re building a system that rewards financial responsibility across borders. This raise is about scaling that infrastructure globally — and making sure that the millions of Africans abroad are finally seen, scored, and served.” 

• Lewam Kefela, Principal at Partech, said: 

“Adeola and his team are driving transformative innovation in remittance and cross-border payment infrastructure. We're excited about how their work is enabling better financial services for the African diaspora and unlocking broader opportunities across the ecosystem. We are thrilled to partner with Kredete on this journey.” 

Zoom out 

• Per CV VC, Kredete’s first raise last year ($2.25 million) put it in the top firms that secured almost half of the total blockchain funding in Africa last year.
• With its latest raise, it has surpassed that high and is now the African blockchain firm to have raised the most money so far this year.
• Amidst a dearth of funding for African companies and in a time where most projects now resort to ecosystem grants to fund their operations, Kredete’s new raise underscores the value of their product offering.