Nigeria's CreditChek raises $600,000 to expand credit data infrastructure into East Africa

In a small office in Lagos, Nigeria, Kingsley Ibe and Lionel Orishane poured over financial data, searching for a solution to the crippling problem of credit risk management in Africa's micro, small, and medium-sized enterprises (MSMEs). Their startup, CreditChek, was born out of a desire to help lenders navigate the complex and often fragmented financial landscape of the continent. Now, with a fresh injection of $600,000, CreditChek is poised to take its innovative approach to credit data infrastructure into East Africa.

Africa's MSMEs face a staggering funding gap estimated at over $330 billion, according to development finance estimates. The challenge is daunting, with limited credit histories and fragmented financial data constraining lending. It's a vicious cycle: without access to credit, MSMEs struggle to grow, while lenders are hesitant to take on the risk of default. CreditChek is positioning itself as part of the solution, building the data infrastructure that allows lenders to access richer, more reliable insights.

The company plans to launch in Kenya, Uganda, and Rwanda, its first expansion outside Nigeria. This strategic move comes as African lenders continue to grapple with the delicate balance between financial inclusion and credit risk management. The startup's products, including Credit Insight and Income Insight, are designed to help banks, fintechs, and microfinance institutions evaluate creditworthiness using alternative data. By analyzing cross-border credit history data and verifying income through AI-powered tools, CreditChek aims to reduce delinquency rates and increase the accuracy of credit assessments.

CreditChek's data infrastructure is already showing promise, with loans underwritten using its tools recording more than 75% lower delinquency rates compared to traditional underwriting methods. This is no small achievement, and one that has caught the attention of investors. Janngo Capital, led by Fatoumata Bâ, has committed to supporting CreditChek's expansion into East Africa. "We are proud to lead this funding round in CreditChek, a company building the credit data infrastructure Africa needs to scale responsible lending," said Bâ.

The $600,000 investment will enable CreditChek to scale its infrastructure and partnerships in East Africa, bringing the company closer to its vision of a future where credit decisions are faster, more inclusive, and more reliable. As Kingsley Ibe, co-founder and chief executive of CreditChek, noted, "This funding allows us to build the data infrastructure that allows lenders to access richer, more reliable insights." With CreditChek at the forefront, African lending is poised to change for the better.

As CreditChek prepares to launch in Kenya, Uganda, and Rwanda, the stage is set for a new era of inclusive lending in East Africa. By leveraging alternative data and innovative tools, the company is helping to bridge the funding gap that has long plagued MSMEs. The impact will be far-reaching, with millions of underserved individuals and businesses gaining access to financing that was previously out of reach. As CreditChek continues to grow and expand, one thing is clear: the future of African lending is looking brighter than ever.

In an industry where credit risk management is a significant challenge, CreditChek is boldly charting a new course. By building a robust data infrastructure that combines alternative data and AI-powered tools, the company is helping lenders to make better decisions and reduce the risk of default. As the startup continues to scale and expand into new markets, its commitment to responsible lending and financial inclusion is a beacon of hope for the millions of MSMEs that call Africa home.