The Nigerian credit reporting startup, CreditCheck said its ambition is to become the most trusted credit infrastructure after raising $240,000 in a pre-seed funding round.
Fundraising Announcement, Kingsley IbeCo-founder of CreditChek, said the vision is to be Africa’s most trusted credit infrastructure over the next 5 years, fostering trust between lenders and borrowers.
“In pursuit of this vision, we are pleased to announce that we have raised $240,000 in pre-seed funding led by Atom.
“Like coconut heads; we continue to be stubborn about our vision as financial inclusion advocates but flexible about our mission.
The funding will be used to realize its vision of becoming Africa’s most trusted credit infrastructure over the next 5 years, fostering trust between lenders and borrowers.
The funding was led by Atom Capital with participation from Aidi Ventures, Ham Serunjogi of Chippercash, Olumide Ogunsanwo of Adamantium Fund, Damola Adegboyega of Assembly Investors, Isaac Ewaleifoh of Launch Africa Ventures and Ogundiran Kayode.
“In April 2022, we launched our MVP in beta, testing with a few companies and iterating. During the beta, we onboarded 30 companies, handled thousands of API calls, and eventually exited the beta in June 2021.”
CreditChek uses structured, user-authorized data from multiple sources to build powerful identity, credit, and verification services that enable fintechs, banks, microfinance institutions, retailers, and operators to mobile money to create better financial products for the underserved.
“In Nigeria, it is not uncommon to hear of clients taking out loans from 3-5 lenders simultaneously and then vanishing into thin air. These types of bold schemes and the general reluctance of customers to repay loans continue to overwhelm lenders. »
This is mainly because the existing credit bureaus have a high barrier to entry and are therefore inaccessible to the average Nigerian business. Most low-income consumers are not catered for in the formal banking system; therefore limited historical data on underbanked consumers.
“So we turned to building the credit reporting infrastructure for lending businesses in Africa. A platform that will enable digital and traditional leaders to reliably verify the identity and assess the creditworthiness of potential customers,” he said.