Divine has raised $6.6 million in seed funding to expand Credit, its undercollateralized lending protocol designed for borrowers without access to traditional credit.
The round, announced Thursday, was led by venture firm Paradigm with participation from Nascent and angel investors. Credit launched in December 2024 and has since issued more than 175,000 loans to over 100,000 unique borrowers, according to Divine’s announcement.
Unlike traditional lenders that require collateral or credit histories, Credit evaluates repayment capacity through borrower behavior. The protocol begins with small loan limits that expand to as much as $1,000 for users who repay on time.
If borrowers intend to default, they are incentivized to do so early, reducing systemic risk. Loans are denominated in stablecoins and settled on World Chain.
The product is distributed through World MiniApps, which reach more than 15 million human-verified users. Borrowers in countries such as Argentina, Nigeria, and Colombia primarily use the service for everyday expenses including groceries, medicine and utility bills. Interest rates adjust dynamically to cover expected defaults while remaining competitive with local lending options.
On the liquidity side, deposits are capped at $2 million as the system scales. Rates rise automatically to attract capital when lending demand outpaces supply and fall when liquidity exceeds demand. Divine said the seed round will fund hiring and technical improvements to make Credit more accessible to first-time users.