In a move aimed at empowering local lenders and expanding access to credit, Nigerian fintech startup Lendsqr has rolled out a NGN1 billion (approximately $600,000) on-lending initiative. This new funding pool is designed to support banks, microfinance institutions, and digital lenders in Nigeria, enabling them to increase their lending capacity and better serve their customers.
Since its founding in 2018, Lendsqr has become a key provider of loan management solutions, offering tools for lenders to scale their operations, connect with borrowers, and make data-driven lending decisions. With a focus on digital access, Lendsqr’s platform facilitates seamless loan applications on mobile and web, integrates advanced credit scoring, and automates collections—all aimed at improving the overall lending process.
This initiative represents a strategic shift for Lendsqr, which had previously focused on providing cutting-edge technology for lenders. “For a long time, we believed that providing top-tier lending technology was enough,” explained Adedeji Olowe, CEO of Lendsqr. “But technology alone cannot drive growth without sufficient capital. That’s why we’re taking this extra step to help lenders overcome a crucial barrier to scale.”
The new on-lending model offers lenders with State Moneylender or Cooperative licenses an accessible source of capital, addressing a common challenge for digital lenders who struggle to secure funds at competitive rates. With this funding, Lendsqr aims to bridge the gap between innovative lending technology and access to capital, ensuring that local lenders have the resources they need to meet growing demand and remain competitive in Nigeria’s dynamic financial landscape.
