Quick Read: Affinity Africa has raised $8 million in seed funding to expand its financial services across Ghana. The funding round was led by Grazia Equity and BACKED VC, marking their first African investment. Since its 2022 launch, Affinity has onboarded over 50,000 customers, with a strong focus on financial inclusion. The company has disbursed $15 million in loans, maintaining a low non-performing loan rate of 3%.
Affinity Africa, a fast-growing fintech startup, has secured $8 million in seed funding to expand its financial products across Ghana. In a country where mobile money remains the dominant financial tool, this funding will help Affinity reach more underserved individuals and micro-enterprises.
Investors Backing Affinity’s Growth
The funding round was led by European venture capital firms Grazia Equity from Germany and BACKED VC from London. This marks their first investment in the African market. Other key investors include Enza Capital, Launch Africa, Renew Capital, Finca International, Attijariwafa Ventures, and Impact Assets, alongside early supporter Eldon Capital.
Strong Growth and Focus on Financial Inclusion
Since its launch in October 2022, Affinity has onboarded over 50,000 customers. Founder and CEO Tarek Mouganie revealed that 65% of users had never accessed formal banking services before, and over 60% are women working in the informal sector. This underscores the startup’s commitment to financial inclusion.
In 2022, Affinity raised an additional $3 million in a pre-seed round to upgrade its operational license. After months of stealth testing, the company officially launched its app following approval from the Bank of Ghana.
Banking Services Tailored for Individuals and Micro-Enterprises
Affinity serves both individuals and micro-businesses, offering free savings and current accounts with no transaction limits. Users are credit-scored based on their transaction history, allowing the platform to extend lines of credit after just a few months of usage.
Expanding Loan Offerings with Strong Performance
Affinity provides loans with monthly interest rates ranging from 3% to 7%. The company has disbursed over $15 million in loans, with instant loan demand growing at a rate of 30% month-over-month. Notably, the startup maintains a low non-performing loan (NPL) rate of just 3%.
Investor Confidence in Affinity’s Leadership
Andre de Haes, founder and managing partner at BACKED, praised CEO Tarek Mouganie’s leadership and vision, stating:
“At BACKED, we prioritize founder-led initiatives, and we believe there is no better person to build Africa’s local bank than Tarek. He began his career investing in banks during the 2008 financial crisis, developed expertise in regulation and strategy, and has built a world-class banking software stack for Affinity from the ground up. His ability to connect with and understand customers has resulted in impressive early user adoption.”
With strong investor backing and a growing customer base, Affinity Africa is poised to reshape the financial landscape in Ghana, bringing more inclusive banking services to those who need them most.
