Affinity Africa has raised $8 million in a Seed Round led by Grazia Equity and BACKED VC. The funding will help expand its digital banking services in Ghana and beyond. The company aims to make banking affordable and accessible for underserved and unbanked communities.
Affinity launched in Ghana in October 2024 and has already onboarded 50,000 customers. About 65% of them never had formal banking access before.
More than 60% of users are women working in the informal sector. The company provides personal and SME accounts, savings, payments, loans, and investment services.
Banking Without Fees and Long Queues
Affinity operates without physical branches and relies on mobile and web apps. It also uses an agent network and proprietary technology.
This model reduces costs and eliminates fees for customers. Traditional banks in Ghana charge fees and have slow onboarding processes. Affinity provides fast, low-cost financial services instead.
“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.
“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.” – Tarek Mouganie, Founder and Group CEO, Affinity Africa.
Since its launch, Affinity has grown its customer base three times year-over-year. Savings have increased by 35% month-on-month.
Instant loans have also grown by 30% each month, with a low non-performing loan rate of 3%. The new funding will help the company expand within Ghana before moving to other African countries.
Ghana’s traditional banks are growing but still leave many people without access to financial services. Less than 10% of businesses get credit. More than 60% of adults lack access to banking. The demand for digital banking is growing as the population increases. Affinity wants to fill this gap with cost-effective solutions.
“At BACKED we are founder first, and 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.” – Andre de Haes, Founder and Managing Partner, Backed.
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Affinity Africa Boosting Financial Inclusion
The $8 million Seed Round was led by Grazia Equity and BACKED VC. Other investors include Enza Capital, Launch Africa, Renew Capital, and Eldon Capital.
“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 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.” – Mike Mompi, Managing Partner, Enza Capital.
“Affinity’s ability to combine rapid growth with strong governance is truly remarkable. In less than a year since the official launch, the company has achieved significant expansion in customer base, deposits, and loans, all while maintaining a low-risk profile and an impressive low NPL.
“This level of sustainable growth is rare for a digital banking platform and speaks to the strength of Affinity’s leadership, strong governance, and commitment to delivering value to underserved communities. Affinity sets a model that not only drives financial inclusion but also sets new standards for responsible banking in Africa.” – Catherine Engmann, Board Member, Affinity Africa.
Affinity Africa plans to continue its mission of financial inclusion by reaching more customers and expanding into new markets.