In an oversubscribed seed funding round, Affinity Africa, a digital banking platform located in Ghana, raised $8 million to broaden its reach and improve financial inclusion throughout the continent.
With involvement from Enza Capital, Launch Africa, Renew Capital, Finca International, Attijariwafa Ventures, Impact Assets, and many angel investors, Grazia Equity and BACKED VC spearheaded the investment.
BrandSpur banking and finance news report that less than a year had passed since Affinity Africa formally began operations in October 2024 when the finance was granted. More than 50,000 Ghanaian consumers have since been onboarded by the platform, with 65% of them having never had a bank account.
60% of its clientele are women working in the unorganised sector, demonstrating the company’s influence on financial inclusion.
Affinity Africa provides a cost-effective substitute for traditional banks, whose exorbitant costs and onerous procedures have kept millions of Africans out of the financial system, with a model that does away with monthly fees and transaction charges. Through a mobile app and agent network, the company offers a comprehensive range of digital banking services, such as savings, payments, transfers, investments, loans, and personal and SME accounts.
The company’s strong, sustained growth since the launch of its mobile app shows how much local customers needed a better banking experience, without absurd fees and endless queues, said Tarek Mouganie, Founder and Group CEO of Affinity Africa.
Continuing, he had this to say: “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.”
Ghanaian banks have reported a 24% year-over-year gain since the COVID-19 outbreak, demonstrating the great profitability of the African banking industry. However, many people still cannot afford traditional banking services because of their exorbitant charges, copious paperwork, and drawn-out onboarding procedures.
Affinity Africa wants to close this gap by providing a more practical and reasonably priced substitute.
Andre de Haes, the Founder and Managing Partner of BACKED VC, praised Affinity’s leadership, saying: “At BACKED, we are founder first, and we could not think of a better person to build Africa’s local bank than Tarek. He has a unique ability to connect with and understand customers, which has materialised into extremely impressive early user numbers.”
Before entering other African markets, the cash will allow Affinity Africa to solidify its position in Ghana. The company intends to reach more unbanked people around the continent, expand its operations, and improve its technological infrastructure.
Enza Capital Managing Partner Mike Mompi confirmed the importance of Affinity’s model: “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 agent network and mobile app, coupled with exceptional execution, is already delivering meaningful growth and measurable impact.”
Affinity Africa has so far succeeded in establishing responsible banking throughout the continent, demonstrating that a technologically advanced, long-lasting financial institution can promote appropriate financial inclusion while upholding sound governance.
