Nigeria Based Micro Lending Platform Aella Credit Secures $10 million in Funding to Launch New Blockchain Based Credit Loan Service Creditcoin.
Aella Credit, a Nigerian fintech startup raises $10 million debt financing round, from HQ Financial Group (HQF), a Singapore-based private company focused in new material science, semiconductor and blockchain financial investments.
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Aella Credit is a micro-lending platform targeting low-income earners, entrepreneurs and small scale businesses. Aella Credit was founded in 2015 by Akin Jones and Akanbi Wale.
This is the second fund raising for Aella after it secured $2 million seed funding at Y Combinator from seed investors including Micheal Seibel, Y Combinator’s CEO; Brian Armstrong of Coinbase; Bill Paladino, former head of Naspers eCommerce); 500 Startups and others.
See Also: Nigeria Blockchain Startup WiCrypt Gets Funding From Nigeria Communication Commission (NCC).
According to Akin Jones, CEO Aella Credit, the micro-lending platform is licensed to operate in both Nigeria and the Philippines and it’s plan is to use the funding to grow its lending operations and expand its product base into payments.
Aella Credits will invest in new products including a blockchain-based lending market called Creditcoin. This it intends to build, in other to create a more flexible credit loan to its customers and build an additional one million users by the end of 2020.
This is the reason why it got a fund raise from an investor in blockchain financial investments. Aella Credit is probably the first blockchain based credit loan provider in Nigeria and Africa.
“Lack of access to credit and financial services has been the main impediment to MSME growth and poverty reduction in several emerging economies. Aella’s commitment to providing trustworthy credit to millions of people in the world’s emerging markets is improving financial inclusion, enabling MSME expansion and accelerating economic growth and this raise will allow us scale our expansion across Africa quickly”, Jones said.
Moreso, Sun Han Gyu, CEO of HQ Financial Group, said;
“We are excited to announce our partnership with Aella Credit which will significantly aid in the proliferation of micro-loan services to the underserved African populations who are unable to access banking services.”
“HQF is impressed with their outstanding growth with very low default rate in the micro-loan business in Nigeria and look forward, through this initial investment of $10m to new growth opportunities in Africa and South Asia.”
The new credit loan platform dubbed creditcoin will be powered by blockchain increasing the number of blockchain powered service providers in Nigeria for 2020.
Aella’s lending platform will now allow its users to access loans, make safe and secure investments. It will also allow them to have access to affordable insurance plans, process bill payments and offer peer-to-peer money transfer services.