Nigerian credit assessment startup Creditchek has raised $240,000 in pre-seed funding led by Atom Capital with support from Aidi Ventures.
The funding also so participation from Olumide Ogunsanwo of Adamantium Fund, Ham Serunjogi of Chippercash, Isaac Ewaleifoh of Launch Africa Ventures, Damola Adegboyega of Assembly Investors, and Ogundiran Kayode
Creditchek helps traditional and digital leaders properly verify, identify and evaluate the creditworthiness of potential clients.
Kingsley Ibe and Lionel Orishane launched Creditchek in 2021, which offers three product features that digital lenders may integrate into their applications or websites as well as a no-code platform for more conventional, less technologically advanced businesses.
Customers can use the feature’s Income Insight to look at the user’s financial situation, gain important information about cash flow, and determine income to establish the right financing.
By utilizing BVN, NIN, and other real-time sources, its Identity function also enables businesses to learn the true identities of their clients.
The Credit Insight feature of Creditchek leverages historical credit information from a variety of sources to offer vital insights into the borrower’s credit and debt situation.
Ibe launched MicroMoni in 2019, a lending company that offered microloans to MSMEs, before founding CreditChek.
For every 10 loans, it allocated, 4-6 of those loans reverted as bad loans, which severely restricted the startup’s ability to allocate more loans, according to the founder of MicroMoni. This high NPL was a result of poor credit information.
Techbuild’s Take
The company realized the business model required a high cost of acquisition and much more to sustain the consumers, so it changed from its first version in December 2021 and onboarded a few hundred clients in the first two weeks.
The startup tested and iterated its MVP with a few firms before releasing it in beta in April 2022. Before terminating in June 2022, it accepted 30 organizations during its Beta phase and handled thousands of API calls.
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