Affinity Africa Team
Ghanaian Digital banking platform, Affinity Africa, has announced its closure of an $8 million seed round. The fledgling fintech was backed by European venture capital firms Grazia Equity and BACKED VC. It also saw participation from investors like Enza Capital, Launch Africa, Renew Capital, Finca International, Attijariwafa Ventures, Impact Assets, and Eldon Capital. This round signals investor appetite for solutions to the continent’s persistent financial inclusion challenges.
Affinity Africa is a nascent startup launched in October 2024 by Tarek Mouganie. Within a short period of four months, the startup has already onboarded 50,000 customers in Ghana. According to the Affinity Africa, an impressive 65% of these customers are new to formal banking, and over 60% are women in the informal sector.
Ghana’s traditional banking sector, although profitable, has come under fire 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. Affinity Africa operates a branchless model, only relying on a mobile and web app, an agent network, and proprietary technology. This approach allows them to offer a full array of banking services, including personal and SME accounts, savings, payments, transfers, investments, and loans, without the overhead of traditional brick-and-mortar branches. This means the company can offer products without monthly fees or transaction charges.
Affinity Africa’s growth figures depict a bullish rise of 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, believes their success comes as a result of 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.
BACKED VC which has built a reputation 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.
We are thrilled to support Affinity Africa as they address one of the continent’s most pressing challenges — financial inclusion. 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.” said Mike Mompi, Managing Partner at Enza Capital.
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.
