African fintech startup Kredete has raised $22 million in Series A funding to expand its credit-building infrastructure and stablecoin-powered money transfer services across more than 40 African countries.

The company is integrating banks and digital wallets into a single API to streamline payouts into Africa, supporting its expansion into new markets and fostering a cross-border credit system.

Industry leaders and investors, including Khaled Ben Jilani of AfricInvest and Lewam Kefela of Partech, have praised Kredete for addressing key issues in remittance, cross-border payments, and financial inclusion in Africa.

Kredete estimates its target market to include about 45 million African migrants in the US and 600 million mobile-first users in Africa who receive remittances.

Its stablecoin infrastructure enables fast, reliable, and low-cost international money transfers, helping users bypass traditional remittance challenges.

Kredete's model reflects a shift in financial services for the African diaspora, targeting a remittance market that exceeded $54 billion to Sub-Saharan Africa in 2023.

Since its launch, Kredete has served over 700,000 monthly users, facilitated $500 million in remittances, and helped improve U.S. credit scores by an average of 58 points, aligning with UN SDGs related to economic growth and reducing inequalities.

Kredete plans to expand into Canada, the UK, and Europe, developing features like rent reporting, credit-linked savings plans, and responsible loans for thin-file or no-file immigrants.

The company aims to use its new funding to develop these features and expand its operations into European markets.

Kredete is launching interest-bearing USD and EUR accounts to help Africans abroad preserve value, earn yields, and hedge against local currency volatility.

With less than 5% of Africans having access to credit cards, there is significant potential for fintech solutions like Kredete to fill this gap.

Meanwhile, other startups like Honeycoin, backed by Visa Ventures and TL Tcom Capital, have raised $4.9 million for stablecoin-based payments platforms operating across Africa, North America, and Europe.