Nigerian fintech firm One Finance Limited has secured a $5 million revolving line of credit that it plans to use to lend more money through its mobile lending platform, Paylater.

The new line of credit was made available through New York and Nairobi-based tech funder Lendable, according to Ventureburn.

In January 2019 the Paylater platform’s parent company, One Finance Limited, secured Africa’s first credit rating for a fintech platform, achieving a “BB” investment rating with a “Stable Outlook” from Global Credit Rating Co., according to Techcity.

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Lendable uses technology to provide financing for lenders who lend money to African consumers and small businesses, with more than 100 million borrowers on the continent to date through partnerships with lenders.

Thanks to the revolving line of credit, Paylater will be able to increase the amount of loans it provides. It has already lent $60 million in 750,000 loans since it launched in 2016, according to ITNewsAfrica.

The fintech platform says it approves more than 1,500 loans a day at an average of $80 per loan.

Paylater also helps users transfer money, purchase mobile airtime, invest and pay bills.

Paylater’s aim is to become a full-service digital bank in 2019 with the addition of new financial products and services, according to Ventureburn.

It hopes to accomplish this through a partnership with Visa with Paylater providing credit via QR codes at supermarkets, clinics and on public transport.

Paylater was founded in 2016 by Chijioke and Ngozi Dozie, and now employs more than 40 staff with operations in Ghana, South Africa, the U.K. and Portugal.

The additional loans are expected to allow the platform to increase its presence in Nigeria before entering new African markets during 2019, according to Techgistafrica.

The app has been downloaded more than 1 million times. Approved applicants receive their loans within minutes without having to deal with anyone outside of the app.

First credit rating for African fintech firm

Global Credit Rating Co. is a leading emerging market-focused ratings agency based in South Africa.

The positive investment rating for the Nigerian fintech firm increased the transparency and the credibility of the parent company and its Paylater platform, attracting investors and allowing for the partnership with Lendable to become possible.

The ratings agency’s report analyzed key financial and operational factors including risk management, liquidity positioning, borrowings and capital under management, CNBCAfrica reported.

The rating showed that One Finance Limited was well capitalized in relation to its current risk level, and the company has a low liquidity risk.