Ghanaian fintech startup Affinity Africa has raised US$8 million in an oversubscribed seed round to expand its reach at home and move into new markets.
Formed in 2022 by Tarek Mouganie, and publicly launched last year, Affinity leverages a branchless model, powered by a mobile and web app as well as an agent network, and a proprietary technology platform to provide a full suite of banking services in a more efficient and accessible way.
Its product portfolio includes personal and SME accounts, savings, payments, transfers to banks and mobile money wallets, investments, and loans. Affinity has already onboarded over 50,000 customers in Ghana alone, and is now planning for expansion after securing US$8 million in seed funding.
The round was led by Grazia Equity and BACKED VC, and will be utilised to expand Affinity’s reach in Ghana ahead of planned international expansion, to continue driving financial inclusion across Africa. Other participants in the round include Enza Capital, Launch Africa, Renew Capital, Finca International, Attijariwafa Ventures, Impact Assets, and prominent angels, joining early backer Eldon Capital.
“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.
