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
Kredete, a fintech platform dedicated to serving African immigrants, has raised $2.25 million in seed funding. This funding round was led by the Blockchain Founders Fund and saw contributions from a cohort of influential investors including Techstars, Tezos Foundation, and Polymorphic Capital.
The company, which has carved a niche in facilitating credit building and low-cost remittances for African diaspora, has captured the interest of the investment community, including firms like Launch Africa, Neer Venture Partners, and DNA Fund. The funding round also drew support from angel investors associated with established payment entities like Wise and Western Union.
Transformative Financial Tools
At the heart of Kredete’s offerings is a platform that allows African immigrants to send money across over 20 countries with minimal fees, simultaneously aiding them in building a credit history in their new countries. 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.
Amar Odedra, Head of VC at Trilitech, Tezos R&D Hub, highlighted the significance of this innovation, stating, “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.”
Growth and Operational Excellence
Since its inception, Kredete has shown impressive growth, amassing over 300,000 users and facilitating transactions worth over $100 million. The platform has notably increased users’ credit scores by an average of 23 points within just six months of usage.
The team behind Kredete’s success includes Hakeem Oriola, CTO, who ensures the robustness of the platform’s technological backbone, and Ebuka Arinze, Chief Product Officer, who spearheads product strategy and innovation. Additionally, Fey Sowunmi leads the Customer Experience team to guarantee seamless and intuitive user interactions.
Future Vision and Expansion
Looking ahead, Kredete plans to extend its services to all African countries, a significant scale-up from the current 20. The company is also exploring the launch of more financial products tailored to the needs of African immigrants, such as credit cards, auto loans, and mortgage loans, aiming to establish a comprehensive financial ecosystem.
Adeola Adedewe, Founder and CEO of Kredete and a first-generation African immigrant himself, shared his vision: “Kredete is more than just a remittance service; it’s a gateway to financial inclusion for African immigrants in the diaspora. Our goal is to empower our users to build a secure financial future, no matter where they are migrating into.”
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. As the company grows, it aims to become a key financial service provider for African immigrants relocating to North America, offering them vital tools to build credit and manage their finances effectively in their new homes.
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