Lendsqr grew from a facet mission to 4 failed product launches and located product-market match, twice.
If anybody in Nigeria might clear up a fintech or credit-related downside, it was Adedeji Olowe.
Earlier than founding his fintech Lendsqr, which gives proprietary expertise for lenders, Olowe labored in several capacities in a few of Nigeria’s largest banks. He was the previous head of digital banking and internet administration at Nigeria’s largest financial institution by asset, Entry Financial institution. He held the identical position at Constancy Financial institution, a tier II Nigerian financial institution. He was the previous head of playing cards at UBA and head of enterprise automation at FCMB.
Olowe is the present board chairman of Nigeria’s fintech poster baby, Paystack, and beforehand served on the boards of Sparkle and Verve Worldwide, a division of Nigeria’s fintech unicorn, Interswitch. His efforts alongside different trustees of the Open Banking Nigeria helped safe the approval of open banking in Nigeria.
I sought Olowe out for 2 important causes: to be taught why, after practically 20 years in banking, he selected to construct credit score expertise for lenders somewhat than change into a digital lender himself, and to know precisely how he achieved this.
I went into the interview anticipating that Olowe was going to share a barrage of suggestions and motivational-esque speak about how he did it. But, Olowe’s reply was easy: he wouldn’t have completed it with out the religion and expertise of quite a few individuals.
That is the story of Lendsqr as advised to TechCabal.
Day 1: Facet mission
The thought for Lendsqr wasn’t mine. It got here from Joey, a ridiculously proficient designer and associate at DFS Labs. I met Joey by way of Tosin Eniolorunda of Moniepoint. Joey as soon as helped us redesign Constancy’s Web banking platform. It was so properly completed, it didn’t want a facelift for a decade.
Joey had an concept round constructing the expertise to assist digital lenders disburse loans and receives a commission again. He floated it by me, and whereas he and his group didn’t run with it, I couldn’t let it go. That was 2017. By early 2018, I began tinkering with the idea myself. I wasn’t able to construct a startup from scratch, however the itch had taken maintain. I used to be nonetheless working full-time as an government at Coronation Group, reporting on to Aigboje Aig-Imoukhuede. I advised him about this little facet mission. He gave me his blessing.
We known as it Lendstack again then. Everybody was utilizing “stack”—Paystack, Wealthstack—so we joined the get together. I used to be additionally on Paystack’s board on the time, so I ultimately determined to alter the identify. However naming was the least of our issues.
We constructed and scrapped the product 4 occasions between 2018 and 2020. Every model failed to satisfy the ambition we had in our heads. The tech didn’t work. The expertise wasn’t good. I wasn’t even full-time. It was me, a private assistant, and a contractor right here and there. It was Mickey Mouse software program. That’s the reality.
An unintentional product market match
Then, someday in late 2019, an organization known as BlinkCash approached us. They didn’t wish to use our platform; they only wanted a lending app and backend constructed from scratch. We would have liked the money, so I gave the temporary to 2 younger builders: Chigozie and Tosin.
I can’t overstate this: what these boys constructed grew to become the Lendsqr of right now.
We turned their codebase right into a demo app—known as it Irorun—and began exhibiting it to different potential shoppers. In contrast to our authentic platform, individuals really cherished it. In actual fact, earlier than we even completed tweaking it, we had two new prospects—Liberty Credit score and KrediBank—asking to make use of it.
By mid-2020, I had shut down the unique web-based product. We went all in on the BlinkCash fork. I nonetheless bear in mind how we juggled all the things—constructing and demoing whereas nonetheless rewriting our basis. We hit product-market match the primary time by chance.
As soon as I noticed the potential, I doubled down. I used to be nonetheless at Coronation, however with COVID forcing distant work, I had extra time. I poured all the things into Lendsqr. I raised $1 million in two months. I did all the fundraising efforts myself. I designed the pitch decks and made all the calls myself.
The founding father of Remita gave me ₦250 million. My ex-wife even compelled cash on me “for the children,” she stated. Former bosses, associates from secondary college, and colleagues at Coronation additionally backed me.
We first raised about $50,000 in a household and pal spherical. I raised, not as a result of I didn’t have the cash to bootstrap the enterprise. I raised so I can change into accountable to my buyers.
Discovering product-market match the second time
We began with a web-based platform, which didn’t work. Clients weren’t , and the structure wasn’t ok. So we killed it and went all-in on cellular.
That labored for some time. We onboarded near 80 prospects with our mobile-first method. However finally, we began operating right into a wall. Onboarding was sluggish; generally it took 10 weeks to get one consumer stay. App retailer approvals grew to become a headache. After which the extra critical lenders didn’t even need a cellular app. A few of them had been disbursing ₦150 million loans. No person desires to do this from an Android app.
So in 2022, as soon as I resumed full-time at Lendsqr, we introduced the online product again, this time with higher context, higher execution, and actual prospects to construct with. It was a self-serve internet layer that permit new lenders get their platform up and operating with out ready weeks. That single transfer modified all the things.
It was constructed by Sadiq (he’s within the UK now) and Malaika Ademola-Majekodunmi, who joined as an intern and left as Head of Product. She’s now VP at Fincra. Two of the sharpest individuals I’ve labored with.
So yeah, we hit product-market match twice. First with cellular. Then once more, with the online, sarcastically, the identical product we failed with at first.
Folks made this
There isn’t any model of this story the place I take the credit score.
My PA from day one is now Head of Enterprise. Grace Effio is aware of extra about Lendsqr than I do. She is likely one of the fairness homeowners and has picked up numerous expertise alongside the best way, from SQL to product progress and buyer points. There’s a operating joke that she’ll outlast me within the enterprise. She loves Lendsqr greater than I do.
Malaika joined as an intern, grew to become Head of Product, and now she’s VP at Fincra. Sadiq, who’s now within the UK, constructed our first no-code onboarding software. Mary Adeoye, who interned as an engineer, constructed most of our front-end options. Adewumi, would be the smartest Nigerian engineer I’ve ever met; constructed a few of our core infrastructure.
Even our head of content material advertising and marketing, Eseose Animhiaga, works from Benin. Three years, by no means missed a content material supply. We’ve by no means met in particular person.
If I might do Lendsqr once more
Folks suppose I constructed Lendsqr as a result of I didn’t wish to take care of mortgage restoration complications. I constructed it as a result of the actual infrastructure for credit score in Nigeria didn’t exist. I based Lendsqr to resolve a basic market downside. The problem of constructing it’s what fuels my drive daily.
I wasn’t even doing it for the cash. Since Lendsqr started, I haven’t acquired a wage. I solely obtain a month-to-month gentle and web allowance of about ₦460,000 ($297). More often than not I don’t even hold it; I exploit it to repair issues, reward the group, or purchase somebody lunch. I even spend greater than that—about 500k—month-to-month as bonuses to staff.
Lending tech isn’t plug-and-play. It’s country-specific. It’s advanced. Even inside Nigeria, the tech that works in Lagos received’t work in Sokoto. And while you issue within the complexities—reverse mortgages, balloon funds, moratoriums, plus the stark variations between SME, retail, and schooling loans—every phase calls for its personal method. Within the lending enterprise, each area of interest is a brand new beast to tame and I wished to resolve that. To do it, I wanted to work with prospects like Afolabi Ambibola of KrediBank, who pushed us to construct with depth.
We now serve over 7,088 lenders in Nigeria, Canada, Rwanda, the U.S., Zambia, Malawi, and South Africa.
However in 2019, earlier than our first product market-fit I felt like falling by the wayside. I attempted to return buyers cash ($50,000 on the time). Nonetheless, I spoke with one in every of my buyers, Nnana and I made a decision from that second that I used to be not going to surrender. I fired my group and retained the most effective 4 guys and rebuilt once more.
If I had the possibility to rebuild, I’d begin by rethinking the early structure. We’re nonetheless managing the technical debt from 2020. Nonetheless, the truth is extra nuanced than a easy misstep. I gave the younger builders numerous autonomy, however the architectural path was finally mine, so I take duty for it. You construct with the data you might have. Right now’s readability will appear like amateurism 5 years from now. That’s how this works.
We used to blow $3–5K a month on advertisements. In a single 12 months, we spent over $100K. All we received had been mortgage seekers, not lenders. So we shut it down and went all in on content material. It labored. Right now, 80% of our certified leads come from search engine marketing and academic content material. It’s slower, but it surely’s everlasting. Eseose, our content material advertising and marketing lead runs it like a newsroom. Lendsqr now ranks for high-intent key phrases throughout a number of geographies. We all know we’re not for everybody. However for those who discover us, we’re their final bus cease.
Folks received us right here. Folks will take us additional
Since day one, individuals have been the constructing block of Lendsqr.
And due to that, we’ve constructed the corporate round them. We solely have 35 staff, and we’re capping hiring at 40 till we cross 10 million prospects. Not as a result of we’re stingy—as a result of we’re deliberate.
Our onboarding is brutal: 40 hours of inner lectures, documentation, cross-functional coaching, and simulations. In the event you survive it, you’re a monster. And we would like monsters.
We run on the assumption that folks might be educated to change into world-class. That programs beat vibes. And that the most effective tech corporations aren’t those with probably the most headcount—they’re those with the most effective processes for making their individuals higher.
That mindset bleeds into our product too.
There are solely two sorts of credit score platforms on the earth: low cost and underpowered, or highly effective and prohibitively costly. We’re constructing the third type—enterprise-grade and cost-effective.
Most lenders can’t afford a $79,000/12 months platform. Lendsqr is cheaper however simply as highly effective. Our roadmap consists of beating the most effective on the earth—FintechOS, Mambu, Symphony, and Digifi.
We’re not there but. However we’re coming.
And at some point, I would like it stated—like they are saying of Dangote’s refinery—that probably the most highly effective credit score infrastructure on the earth was constructed proper right here. In Lagos. By a small group of monsters.
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