Divine Secures $6.6M Seed Funding to Expand Undercollateralized Lending Protocol

Divine has raised $6.6 million in seed funding to scale Credit, its undercollateralized lending protocol targeting borrowers excluded from traditional credit systems. Paradigm led the round, with Nascent and angel investors participating. Since its December 2024 launch, Credit has facilitated over 175,000 loans to 100,000 unique users.

The protocol bypasses conventional credit checks by analyzing repayment behavior, starting with micro-loans and scaling to $1,000 for reliable borrowers. Loans are denominated in stablecoins and settled on World Chain, distributed through World MiniApps' 15-million-strong user base. Default mechanisms incentivize early delinquency reporting to mitigate systemic risk.

Primary adoption comes from emerging markets including Argentina, Nigeria, and Colombia, where users access funds for essentials like groceries and utilities. Dynamic interest rates adjust to default probabilities while remaining competitive with local alternatives. The protocol's liquidity pool currently caps at $2 million, with automated rate adjustments balancing supply and demand.