Nigerian Startup Cuts Loan Defaults 75% with Smarter Data

Getting a business loan in Africa just got a whole lot easier, thanks to a Nigerian startup that's cracking the code on credit risk.

CreditChek, a fintech company launched in 2022, has raised $600,000 to expand its credit intelligence platform across East Africa. The funding round was led by Janngo Capital, with support from Assembly Investors, Vastly Valuable Ventures, and Unipeg Capital.

The company addresses a massive challenge: Africa's small and medium businesses face a $330 billion funding gap, largely because traditional credit checks don't work well in markets where many people lack formal credit histories. Lenders struggle to identify trustworthy borrowers, so they either reject too many good applicants or lose money on defaults.

CreditChek's solution uses alternative data to paint a fuller picture. Its AI-powered tools analyze bank statements to verify income and understand cash flow patterns. The platform also provides cross-border credit history and risk assessments that help lenders determine who can actually repay loans.

The results speak for themselves. Loans approved using CreditChek's data have seen 75% lower delinquency rates compared to traditional methods. The company processed more than $60 million in credit applications across one million customer profiles in 2025 and is already profitable in Nigeria.

Now the company is ready to scale. Founders Kingsley Ibe and Lionel Orishane chose Kenya, Uganda, and Rwanda for their first international expansion because of their thriving digital lending markets. Kenya's licensed digital lenders alone disbursed $1 billion across 7.5 million loans as of February 2026.

"We're building the data infrastructure that allows lenders to access richer, more reliable insights," said Ibe. The expansion brings the company closer to a future where credit decisions are faster, more inclusive, and more reliable.

The Ripple Effect

When lenders can make better decisions, everyone wins. Honest entrepreneurs who were previously shut out of the financial system can finally access capital to grow their businesses. Lenders reduce losses from defaults while expanding their customer base. And as more small businesses get funding, they create jobs and economic opportunity across their communities.

CreditChek has already partnered with Bboxx to expand solar financing to 17 million rural households in Nigeria, showing how better credit infrastructure can unlock access to essential services. The company's pay-as-you-go model keeps costs predictable for lenders of all sizes, from major banks to microfinance institutions.

Fatoumata Bâ, founder of Janngo Capital, captured the broader impact: "By enabling lenders to make better decisions using alternative data, CreditChek is helping expand access to financing for millions of underserved individuals and businesses."

As CreditChek enters East Africa, hundreds of thousands more entrepreneurs will get their shot at building the future.