One Finance Limited (OneFi) has been assigned a “BB” rating with a Stable outlook, from Global Credit Rating Co. The company behind Paylater, becomes Africa’s first fintech company to secure such a rating, as it looks to increase transparency around its credit and lending service.
Global Credit Rating Co. is Africa’s leading ratings agency, accounting for the majority of all ratings accorded on the African continent.
The report analysed key financial and operational factors including risk management, liquidity positioning, borrowings and capital under management.
In arriving at this rating of “BB” with a Stable outlook, Global Credit Rating Co’s analysis found that OneFi is well capitalised vis-a-vis its current risk level, and also highlighted the fact that the company currently has a low liquidity risk.
Commenting on the news, Chijioke Dozie, OneFi CEO says, “The entire process of securing this rating from Global Credit Rating has been rigorous, testing, but ultimately, hugely beneficial for the company.
“It has allowed us to scrutinise our finance and business models, as well as provide full transparency not only to our stakeholders but to Paylater’s tens of thousands of customers across Nigeria.
“The work does not stop here. We are a young company, and the very first African fintech platform to be awarded a credit score, and whilst we are pleased with our “BB” rating and Stable Outlook, which we believe fairly reflects our current standing, we are now focused on expanding our product offering, improving our asset quality, driving up customer loan applications and looking at ways in which we can bring our innovative approach to finance management to additional markets”.
Paylater, launched in 2016 by Nigerian finance entrepreneurs Chijioke and Ngozi Dozie, provides hassle-free loans without the need for human intervention or bias in decision making.
To-date, the Paylater app has been downloaded over 1 million times with over 1,575 loans approved daily. The average disbursement time is 12 seconds and the average loan borrowed is $80 with a 3-month loan tenor.
