Creditchek has expanded its East African footprint after acquiring Ugandan banking technology startup Algosys. The deal gives the financial infrastructure company a direct presence in Uganda, while also adding core banking technology to its lending platform.
Algosys was founded two years ago by Innocent Bigeiga and Simon Tayebwa. It will now operate as a Creditchek subsidiary, although it will continue serving its existing customers. The Ugandan startup currently serves 22 financial institutions. It has also facilitated more than 10,000 Sacco loans, giving Creditchek access to an established local financial network.
The acquisition will combine the two companies’ technologies. Creditchek brings credit, income and identity intelligence, while Algosys provides core banking technology. The combined platform will cover more stages of the lending process. These include customer acquisition, risk assessment, loan origination and loan management.
Creditchek is also using the acquisition to strengthen its wider East African expansion. The company raised $600,000 earlier this year to expand its financial data infrastructure across the region. The funding followed its achievement of profitability in Nigeria. Creditchek now plans to expand into Kenya, Tanzania and Rwanda before entering Francophone African markets.
The acquisition could also give Algosys customers access to more financial tools. They will retain their existing products and services, while they gradually gain access to Creditchek’s technology.
The move therefore gives Creditchek both technology and a local customer base in Uganda. At the same time, Algosys provides a platform through which the company can deepen its presence in the country.
Creditchek’s expansion comes as financial institutions increasingly adopt digital systems for lending and banking. By combining its financial data infrastructure with Algosys’ banking technology, the company aims to serve more of the lending cycle across African markets.