On Tuesday, Affinity Africa, a Ghanaian fintech startup, announced that it has raised $8 million in seed funding to broaden its digital banking services.
In their first investment in the African market, European venture capital firms Grazia Equity from Germany and BACKED VC from London led the $8 million seed round.
This round included participation from Enza Capital, Launch Africa, Renew Capital, Finca International, Attijariwafa Ventures, Impact Assets, and early investor Eldon Capital.
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Affinity’s total funding now amounts to $13 million.
Affinity Africa: Opening doors to financial inclusion
Affinity Africa aims to revolutionise banking for underserved communities by providing accessible and affordable financial services.
According to the World Bank, over 60 per cent of adults in Africa lack formal banking options, and fewer than 10 per cent of businesses can secure credit.
Affinity seeks to bridge this gap through seamless digital banking solutions tailored to individuals and micro-enterprises.
Since its launch in October 2024, Affinity has onboarded over 50,000 customers. Impressively, 65 per cent of these users had never engaged with a formal banking institution before, and over 60 per cent are women in the informal sector.
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Affinity Africa: the hybrid banking model
Affinity Africa operates a branchless model, utilising a mobile and web app, an agent network, and proprietary technology. This approach enables them to offer a full suite of banking services, including personal and SME accounts, savings, payments, transfers, investments, and loans, without the costs associated with traditional brick-and-mortar branches.
The company’s hybrid model relies on a network of 30 agents who meet small businesses in person, easing their transition into digital banking.
Tarek Mouganie, founder and CEO of Affinity, stated, “This shift has led us to rethink our agency strategy—focusing on using agents for onboarding, initial education, and driving digital literacy to encourage app adoption. We’re excited to refine this hybrid growth approach as we scale”.
The fintech is refining its strategy to use agents primarily for onboarding and digital literacy.
We couldn’t think of a better person to build Africa’s local bank than Tarek,” said Andre de Haes, managing partner at Backed VC, one of Affinity’s investors.