Affinity Africa Secures $8 Million in Seed Funding to Revolutionize Banking Access Across Africa
Affinity Africa, a groundbreaking digital platform, has recently announced the successful completion of an $8 million seed funding round. The oversubscribed funding was led by Grazia Equity and BACKED VC, marking a significant milestone in the company’s mission to provide banking access to underserved communities in Africa.
Since its launch in Ghana in October 2024, Affinity Africa has experienced rapid growth, amassing a customer base of over 50,000 users. The platform has resonated particularly well with previously unbanked individuals, with 65% of customers accessing formal banking services for the first time. Notably, over 60% of users are women in the informal sector, showcasing Affinity’s success in reaching traditionally underserved demographics.
Operating on a branchless model through a mobile app and agent network, Affinity Africa utilizes proprietary technology to streamline its services. This approach allows the platform to eliminate monthly fees and transaction charges, distinguishing it from traditional banking institutions. Services offered include personal and SME accounts, savings, payments, transfers, investments, and loans.
The company’s growth metrics highlight strong market validation, with customer numbers tripling year-over-year and savings increasing by 35% monthly since the mobile app launch. Affinity’s proprietary scoring engine has also driven a 30% monthly growth in instant loans, maintaining a low 3% non-performing loan (NPL) rate.
Despite challenges in the African banking landscape, there are significant opportunities for growth. Traditional banks in Ghana have seen a 24% yearly growth since the pandemic, with after-tax return on equity (ROE) reaching 34%, surpassing global averages. However, structural inefficiencies and extensive paperwork requirements have left millions without access to financial services, with less than 10% of businesses able to access credit and over 60% of adults lacking formal banking relationships.
Founded in 2022 by Tarek Mouganie, Affinity Africa has garnered investment from prominent firms such as Enza Capital, Launch Africa, Renew Capital, and Finca International. The recent funding round also saw participation from Attijariwafa Ventures, Impact Assets, and angel investors, building on early support from Eldon Capital.
The investment in Affinity Africa underscores confidence in the platform’s innovative approach to financial inclusion. Rather than replicating Western fintech models, Affinity addresses local needs through its hybrid digital and agent network model. This strategy has proven effective in reaching underserved communities while upholding strong governance and risk management standards.
With retail banking assets in Africa currently at only 33% of GDP, well below the global average of 70%, Affinity Africa’s expansion is timely. The platform aims to expand its successful operations in Ghana to other African markets, leveraging its technology-driven, customer-centric approach to transform financial access across the continent.
This article was based on information from Tech Africa News.
