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CredoLab has raised $ 7 million in Series A funding led by GBG, Walden International, and Access VC. CredoLab launched in Kenya, Nigeria, and South Africa in 2019 and intends to use the funds to expand into other African markets.
CredoLab will focus on consolidating its leadership in Southeast Asia and expanding its market reach in Africa, Latin America, Asia, and key countries across the EU.
CredoLab CEO, Peter Barcak, says the firm aims to capitalize on the shift from physical originations to digital ones to provide lenders with stable behavioral score.
Barcak says that traditional credit bureau scores are unreliable during this pandemic driven uncertainty leading to increased appetite for alternative sources of data.
Barcak adds that credit bureaus are a crucial tool to support economic recovery as markets reopen. Lending institutions will rely on credit bureaus offering alternative data sources to restart lending in a post COVID19 environment.
The company already operates in Nigeria, South Africa, Brazil, India, and Europe. The next phase of expansion will target non-banking financial institutions to provide behavioral risk reference data from good customers that are financially excluded.
CredoLab develops bank-grade digital scorecards for companies that need to make better credit decisions including banks, lenders, e-commerce, travel, ride-hailing, e-wallets, insurance, and retail companies. Since its inception in 2016, CredoLab has powered almost USD 2 billion in loans issued by 70+ clients across 20+ countries.
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