African fintech Kredete secured $22 million in Series A funding to expand its stablecoin-based payment and remittance services and launch Africa's first stablecoin-backed credit card, signaling confidence in Web3 financial inclusion.

Executive Summary

Nigerian fintech Kredete has completed a $22 million Series A funding round, aimed at scaling its stablecoin-based payment and remittance services and introducing Africa's inaugural stablecoin-backed credit card. The investment underscores growing investor confidence in Web3 solutions for financial inclusion, particularly for the African diaspora.

The Funding Event

Kredete secured the $22 million Series A capital from investors including AfricInvest (through its Cathay AfricInvest Innovation Fund and Financial Inclusion Vehicle), Partech, and Polymorphic Capital. This latest infusion brings the company's total funding to $24.75 million since its inception in 2023, following a $2.25 million seed round in August 2024. The capital will fuel Kredete's expansion into key markets such as Canada, the United Kingdom, and Europe, alongside extending its footprint to over 40 countries across Africa.

Financial Mechanics and Product Innovation

Kredete addresses the challenges of high remittance costs and credit-building for African immigrants by leveraging stablecoins for cross-border payments, reducing transaction fees to less than one dollar. The platform processes remittances and reports regular payment data to credit bureaus, enabling users to establish and improve their credit histories. Active users have reported an average increase of 58 points in their U.S. credit scores within six months of using the platform. Adeola Adedewe, founder and CEO of Kredete, stated:

"As millions of immigrants regularly send money home, it has always been a non-negotiable part of their financial lives. This regular payment demonstrates creditworthiness but has never been recognized until now. We're making these payments count, transforming a routine act of support for family into a tool to build a secure financial future." The company is also launching Africa's first stablecoin-backed credit card, developed in partnership with Visa, Stellar, and Rain. This card will facilitate global spending, credit building, and the avoidance of costly foreign exchange fees. The card enables near-instant settlement in USDC via the Stellar network, integrated into the Kredete app, and accepted at over 150 million merchants worldwide. Kredete's Chief Product Officer, Ebuka Arinze, remarked: "We believe stablecoins aren't just a technology—they're a utility. By embedding them into real-world financial tools, we're giving everyday users a way to store and move money with confidence.” Further product diversification includes rent reporting, credit-linked savings plans, responsible goal-based loans, and interest-bearing USD and EUR accounts to mitigate local currency volatility.

Strategic Business Model

Founded in 2023 by Adeola Adedewe, Kredete has rapidly grown to serve over 700,000 monthly active users and has facilitated $500 million in remittances. The company's core strategy revolves around empowering African immigrants to build credit and access financial services by transforming routine remittances into verifiable credit history. Kredete's approach of integrating digital assets into essential financial tools aligns with global trends toward enhancing financial inclusion and efficiency, particularly in emerging markets. Beyond consumer offerings, Kredete provides an API-based infrastructure for businesses to execute secure, real-time cross-border payments into Africa, leveraging modern payment rails and stablecoin technology. The company's mission is recognized for its alignment with the United Nations Sustainable Development Goals (SDGs), specifically SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities).

Broader Market Implications

The successful funding round for Kredete signals robust investor confidence in the utility and growth potential of stablecoins and Web3 technologies for addressing real-world financial challenges. This development contributes to the broader trend of digital asset adoption, particularly in cross-border payments and financial inclusion initiatives. In 2024, stablecoin transaction volumes reached an estimated $27.6 trillion, surpassing the combined volumes of Visa and Mastercard. As of early 2025, the stablecoin market capitalization stood at $227 billion, with USDT and USDC dominating liquidity. Projections indicate that stablecoins could handle $1 trillion in global payment volume by 2028 and capture 12% of international payments by 2030, driven by regulatory clarity and infrastructure advancements. Kredete's expansion and innovative use of stablecoins for credit building and remittances are expected to further drive this adoption, fostering a more interconnected and financially inclusive global ecosystem.