In Africa, access to affordable consumer credit remains a significant challenge. Many young professionals and small business owners face rigid lending requirements, and high interest rates. Lucred, a Nigerian fintech startup, is tackling this problem.
According to the startup, this not only limits the ability to make essential purchases or invest in business growth but also hampers merchants, who lose sales and struggle to build customer loyalty.
In this edition of Techparley’s DRIVE100, where we spotlight Africa’s most promising startups, we explore how Lucred, founded by Temitope Dahunsi, is redefining access to consumer credit and building Africa’s credit infrastructure for individuals and merchants.
“Lucred is building Africa’s credit infrastructure by solving the problem of limited access to affordable consumer credit. We solve pain points of accessibility, affordability, and convenience,” Dahunsi told Techparley.
How Lucred Works
At the core of Lucred’s solution is its ability to provide flexible credit lines at the point of purchase, both online and offline.
The startup says customers can buy products immediately and pay in manageable installments, while merchants receive upfront payments, solving cash flow challenges.
Key features of Lucred include:
- Instant Credit Assessment using alternative data to evaluate underserved but creditworthy users.
- Buy Now, Pay Later & Asset Financing that makes high-ticket purchases affordable.
- Merchant Integration Network providing access to a wide range of vetted merchants.
- Credit History Building reported to credit bureaus, empowering users with verifiable financial records for future opportunities.
“The benefits are clear,” Dahunsi notes. “Customers gain purchasing power, merchants see higher sales, and underserved communities move closer to financial inclusion.”
What Sets Lucred Apart
The fintech landscape in Africa is competitive, with players such as Paylater (Carbon), CredPal, CDCare, and Sycamore. However, Lucred distinguishes itself through what Dahunsi calls the SAFD model, which is the Speed, Affordability, Flexibility, and Data.
Unlike traditional lenders with rigid approval processes or BNPL providers focused solely on online transactions, Lucred integrates both online and offline merchants.
“By offering flexible Buy Now, Pay Later and asset financing at the point of purchase, Lucred removes the barrier of upfront payments, improves affordability, and helps merchants close more sales,” Dahunsi says.
Traction and Milestones
Although still in stealth mode, Lucred has made remarkable strides. The startup has onboarded over 50 merchants and enabled 700+ customers to access flexible credit for essential purchases.
So far, it has processed more than $200,000 in credit transactions and generated early revenue through merchant commissions and interest spreads.
Lucred’s lending operations are FCCPC-approved, NDPC and SCUML-licensed, and it has partnered with Grooming MFB to extend credit coverage and liquidity. Milestones achieved include:
- Developing an in-app credit management system
- Expanding merchant integrations
- Piloting alternative data models for risk assessment
“These achievements validate our model and set the stage for scaling across more cities and merchant categories,” Dahunsi affirms.
The Team Behind the Vision
Lucred is led by Temitope Dahunsi, CEO and Head of Growth, with over seven years of experience spanning retail, partnerships, and technology. Supporting him are:
- Halima Lawal, Product Lead – expert in product design and user experience, ensuring seamless customer and merchant journeys.
- Emmanuel Afolabi, Technical Lead – fintech infrastructure and data systems specialist, building secure and scalable credit platforms.
Prior to Lucred, the team collectively worked across finance, banking, marketing, and technology, which observers say is the perfect blend of skills to tackle credit inclusion challenges in Africa.
Overcoming Challenges and Vision for the Future
Building a fintech startup in Africa is not without hurdles. Dahunsi cites access to affordable liquidity, building trust in digital credit, and integrating with multiple data systems as the major challenges.
Lucred addresses these through partnerships with regulated financial institutions, transparent repayment structures, and ongoing optimisation of its credit scoring model using alternative data.
Over the next 6–12 months, Lucred aims to expand operations across five Southwestern cities, eventually reaching Lagos, growing its merchant network to over 1,000 partners, and serving 10,000 active users while maintaining strong repayment performance.
In the next 2–3 years, Dahunsi envisions launching an agent network, integrating financial products like savings and insurance, and expanding into three additional African markets. By year five, Lucred seeks to become Africa’s leading credit infrastructure platform, powering financial inclusion for millions through accessible, data-driven consumer credit.
What This Means
Dahunsi emphasises that government support is critical to create an enabling environment, and improve digital infrastructure. Finally, he believes venture capitalists can go beyond funding.
Across Africa, the buy‑now‑pay‑later (BNPL) market is surging, projected to grow from approximately US$4.48 billion in 2024 to around US$10.63 billion by 2030.
Experts say this expansion is being driven by rising consumer demand for flexible credit, particularly among underbanked populations, and by strong e‑commerce growth.
According to industry leaders, Lucred is more than a fintech startup, it is laying the foundation for Africa’s consumer credit infrastructure. By addressing the challenges of affordability and accessibility, Lucred is poised to transform the financial lives of millions across the continent.
Talking Points
It is impressive that Lucred is building Africa’s credit infrastructure by providing flexible credit at the point of purchase, addressing a major barrier many young professionals and small business owners face.
This single feature alone positions Lucred as a practical solution for real financial challenges, especially for individuals needing to make essential purchases or invest in growth, and for merchants looking to increase sales and improve cash flow.
At Techparley, we see how tools like this can accelerate financial inclusion beyond urban centres, bringing real value to underserved communities by giving them access to credit that was previously out of reach.
The integration of instant credit assessment, Buy Now, Pay Later, and asset financing with merchant networks means both customers and businesses can operate more efficiently and confidently.
With the right support and regulatory alignment, Lucred has the potential to become a catalyst for financial inclusion and consumer empowerment across the continent.
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