Evaluating only CrediDOM’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
FUNDING
MILESTONE
CRISIS
SHUTDOWN
Full Analysis
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Documented cause
CrediDOM offered instant consumer credit to Dominican Republic workers via a mobile app, using alternative data scoring for underwriting. The company scaled to 15,000 active loan accounts by 2022. Persistently high inflation (7-8% in 2022) and peso depreciation sharply reduced real wages among the borrower segment, driving non-performing loan ratios from a projected 6% to 22% by mid-2023. The capital buffer was insufficient to absorb losses at that scale, and the company entered wind-down after failing to raise a Series B extension.
Lesson
“Before scaling a consumer lending book in an economy with structural inflation above 5%, stress-test your NPL model at 3x your base case. If the business fails at 3x NPL, you need more capital cushion or tighter underwriting.”
Failure anatomy
Collapse type
Slow Death
🐌 LOW
Hype cycle
Decline
Moat type
Data
Fatal mistake
Credit losses exceeded projections in high-inflation environment