In an oversubscribed seed round, Ghanaian fintech startup Affinity Africa raised US $8 million to enter new markets and broaden its domestic reach.
Affinity, which was founded in 2022 by Tarek Mouganie and went public last year, uses a branchless model, a proprietary technology platform, an agent network, and a mobile and web app to deliver a full range of banking services more effectively and conveniently.
Personal and SME accounts, savings, payments, bank transfers, mobile money wallets, investments, and loans are all part of its product line. After obtaining US$8 million in seed funding, Affinity is now preparing for growth, having already onboarded over 50,000 customers in Ghana alone.
In order to further promote financial inclusion throughout Africa, the funding round, which was led by Grazia Equity and BACKED VC, will be used to increase Affinity’s presence in Ghana before its anticipated global expansion. In addition to early backer Eldon Capital, other players in the round include Enza Capital, Launch Africa, Renew Capital, Finca International, Attijariwafa Ventures, Impact Assets, and well-known angel investors.
“The strong, sustained growth we have seen since the launch of our mobile app shows how much local customers needed a better banking experience, without absurd fees and endless queues. As a customer-centric, technology-driven, fully fledged financial institution, we offer affordable, easy-to-use products, backed by a unique business model that attracts a growing base of deposits while offering the cheapest instant loans in the region” said Mouganie.
“This oversubscribed funding round is a testament to the belief in our vision and the opportunity to create real and lasting change, starting in Ghana.”
BACKED founder and managing partner Andre de Haes said his firm was “founder-first”.
“We could not think of a better person to build Africa’s local bank than Tarek. He started his career investing in banks through the 2008 crisis, becoming an expert in regulation and strategy, and has built a world class banking software stack for Affinity from the ground up. He has a unique ability to connect with and understand customers, which has materialised into extremely impressive early user numbers,” he said.
