Carrot Credit, a Nigerian fintech company, revealed Thursday that it has raised $4.2 million in seed funding to grow its innovative lending platform that accepts digital assets as collateral. Partech Africa and Authentic Ventures participated in the investment round, which MaC Venture Capital led.
Carrot will be able to expand its team, build its credit infrastructure, and strengthen its interfaces with digital investment platforms throughout Africa with the aid of this funding infusion.
Carrot Credit’s platform allows retail investors to borrow money using stocks, ETFs, bonds, or cryptocurrencies as collateral without selling their investments or undergoing traditional credit checks.
Borrowers can access up to 40 percent of the value of their steady stock portfolio or up to 70 percent of fixed-income assets, such as government bonds after the fintech validates their asset holdings and lays a lien on them through API connections. Thanks to this strategy, investors who were previously unable to use their digital investments as collateral for loans can now access liquidity.
How Carrot Credit is changing access to loans in Africa
Founder and CEO Boluwatife Aiki-Raji explained, “People were investing in all types of things—stocks, crypto, fixed income—but many didn’t recognise those investments as worth anything. That was the initial idea: why can’t this be collateral?”
Carrot’s approach challenges traditional lending by recognizing digital assets as valuable collateral. It offers users flexible loan terms and below-market interest rates. Borrowers can choose fixed repayment periods of 3, 6, or 12 months or opt for monthly payments tailored to their preferences.
Carrot operates on an embedded B2B2C model, partnering with fintechs, brokerages, and digital wealth managers to integrate its lending service into existing African platforms.
This strategy aims to widen credit access for a growing population of digital investors. So far, Carrot has processed over $2 million in loans and serves over 10,000 users, signaling strong early adoption.
Investor confidence highlights Carrot’s potential
Marlon Nichols, co-founder and managing partner at MaC Venture Capital, expressed enthusiasm about the investment, stating, “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.”
Carrot Credit is establishing itself as a leader in Africa’s fintech sector, where many people still struggle to obtain credit. It is reinventing lending through digital asset collateralisation.
With this new funding, Carrot Credit plans to accelerate its growth and make borrowing more accessible and responsive to the needs of Africa’s digital-savvy investors.
The company’s innovative model could reshape how credit is accessed on the continent, tapping into the rising adoption of digital investments among everyday Africans.