MaC Venture Capital, the Los Angeles-based early-stage investor known for its ties to both Silicon Valley and Hollywood, has made its first publicly disclosed African deal of 2025, leading a $4.2m seed round in Nigerian fintech startup Carrot Credit.

Founded in 2023 by Boluwatife Aiki-Raji, Carrot is one of a small but growing number of African startups developing alternative lending models. The Lagos-based fintech allows users to borrow against their digital investment assets — including stocks, bonds, and cryptocurrencies — without needing to liquidate them or pass traditional credit checks.

The deal marks a renewed signal of intent from MaC, which recently closed a $150m fund aimed at expanding its early-stage investment activity across global markets. Though the firm has invested more than $20m in African startups since its founding in 2019, data suggests a slowdown in regional activity in 2024. The Carrot deal appears to be part of a fresh wave of capital deployment.

“What excites me about this investment is how Carrot is leveraging digital assets to create a seamless, low-barrier credit solution in markets where credit has traditionally been out of reach,” said MaC co-founder and general partner Marlon Nichols.

Carrot’s platform allows users to access loans based on the value of their digital portfolios, applying variable loan-to-value ratios depending on the asset class. For instance, it offers up to 40% of the value of stable equity holdings and as much as 70% for fixed-income instruments like treasury bills. Riskier assets such as cryptocurrencies and volatile equities carry more conservative limits.

“If a user has a portfolio worth ₦1 million in relatively stable stocks, we can allow them to borrow up to ₦400,000 without forcing them to sell those assets,” explained Aiki-Raji in an interview. 

The company says it has already processed over $2m in loans since launching, serving a base of more than 10,000 users. Interest rates are pitched below market average, with users able to choose flexible repayment periods ranging from three to twelve months.

Authentic Ventures also participated in the round.

Carrot’s model draws on examples from global asset-backed lending platforms like BlockFi and SALT, but adapts it to local dynamics. The startup integrates directly with brokerages, digital wealth managers, and investment apps through APIs — positioning itself as an embedded finance infrastructure provider to retail-facing fintechs.

The company generates revenue primarily through loan interest, and its B2B2C strategy allows third-party platforms to extend credit offerings to users without assuming underwriting risk.

While consumer lending is a crowded segment in Nigeria — with incumbents like Carbon, FairMoney, and Aella Credit offering a range of short-term credit products — Carrot is carving out a niche in asset-backed loans. Unlike many of its peers, it does not rely on salary-based income verification or traditional credit scoring.

“We’re not trying to be another loan app,” said Aiki-Raji. “We’re building for the digital investor — anyone who’s already putting money into stocks, crypto, or bonds. That’s our real market.”

A Quiet 2024, A Noisy 2025?

MaC Venture Capital has previously backed African startups including Big Cabal Media (media), Afya Rekod (healthtech), and IdentityPass (identity verification). But public investment activity on the continent has been minimal over the past year.

Data from Launch Base Africa shows no disclosed new deals by MaC in Africa in 2024. The Carrot transaction could suggest a reactivation of the firm’s regional thesis. MaC general partner Michael Palank recently said the firm is drawn to Africa’s “unique combination of demographic tailwinds, mobile-first markets, and underbuilt financial infrastructure.”

Palank, whose professional roots span venture-backed media and tech, emphasizes that MaC invests early and locally where it sees the potential for durable competitive advantage. He describes the firm’s thesis-driven approach — especially in energy, fintech, aerospace, and defense — as focused on identifying markets with structural inefficiencies and long-term upside.

“Africa is the next major frontier,” Palank said. “We’re not in the business of tourist investing. We want to be part of building the ecosystem.”

Carrot’s challenge now will be scaling both product and trust. While demand for credit in Africa remains strong, asset-backed lending is still nascent, and investor education remains a hurdle. Regulatory clarity is also a concern, especially in markets like Nigeria where cryptocurrency policies remain volatile.

Still, Carrot is betting that the rise of digital wealth platforms — combined with the proliferation of embedded finance infrastructure — will create a new generation of borrowers who think differently about collateral.

“This isn’t just about lending,” Aiki-Raji said. “It’s about unlocking value in assets that people already own but don’t realize can work for them.”

With the backing of MaC and others, Carrot joins a growing cohort of African startups aiming to rewire access to credit. As the continent’s fintech sector continues to evolve, investors and founders alike will be watching closely to see whether this new model gains real traction.