Affinity Africa, a digital banking platform launched in Ghana just months ago, has announced an $8 million seed round, a hefty sum for a fledgling fintech. Led by European venture capital firms Grazia Equity and BACKED VC, the oversubscribed round signals investor appetite for solutions addressing the continent’s persistent financial inclusion challenges .
Launched in October 2024, Affinity has already onboarded over 50,000 customers in Ghana, a figure the company is understandably keen to highlight. Impressively, they claim 65% of these customers are new to formal banking, and over 60% are women in the informal sector.
Founded by Tarek Mouganie, Affinity Africa operates a branchless model, relying on a mobile and web app, an agent network, and proprietary technology. This approach allows them to offer a full suite of banking services, including personal and SME accounts, savings, payments, transfers, investments, and loans, without the overhead of traditional brick-and-mortar branches. The company boasts its efficiency allows it to offer products without monthly fees or transaction charges, a compelling proposition in a region where banking costs can be prohibitive.
Affinity Africa ’s growth figures are certainly eye-catching: a 3x year-on-year increase in customer base and a 35% month-on-month rise in savings since the app launch. Their instant loan product, powered by a proprietary scoring engine, has also seen 30% month-on-month growth, with a non-performing loan (NPL) rate of 3%.
Mr. Mouganie, understandably bullish, attributes their success to a customer-centric approach and a unique business model. “The strong, sustained growth we have seen…shows how much local customers needed a better banking experience, without absurd fees and endless queues,” he commented.
The company’s timing seems opportune. Ghana’s traditional banking sector, while profitable, is often criticized for its reliance on fees and structural inefficiencies. Less than 10% of businesses have access to credit, and over 60% of adults lack formal financial services. With retail banking assets at a fraction of the global average, the potential for growth is substantial.
Affinity’s challenge will be to navigate regulatory hurdles, build trust in a market wary of digital finance, and compete with established players and other nimble startups.
Backed VC, known for its “founder-first” approach, seems to have placed a significant bet on Mr. Mouganie. “He has a unique ability to connect with and understand customers,” said Andre de Haes, Founder and Managing Partner at BACKED.
Grazia Equity and BACKED VC, both European firms, are making their first foray into the African market with this investment. Their participation, alongside other investors including Enza Capital, Launch Africa, Renew Capital, Finca International, Attijariwafa Ventures, Impact Assets, and Eldon Capital, underscores the growing interest in African fintech.
“We are thrilled to support Affinity Africa as they address one of the continent’s most pressing challenges — financial inclusion,” said Mike Mompi, Managing Partner at Enza Capital. “Rather than replicating fintech models from the Global North, they have crafted an innovative approach tailored to local needs and grounded in strong fundamentals. Their mixed model of an agent network and mobile app, coupled with exceptional execution, is already delivering meaningful growth and measurable impact. We are confident they will scale successfully to serve millions across Africa.”
Affinity’s $8 million seed round brings its total funding to $13 million. The company plans to use the capital to expand its reach in Ghana and prepare for international expansion. While the initial numbers look promising, the real work is just beginning. Affinity must now prove it can not only attract customers but also build a sustainable and profitable business model in a complex and demanding market.