Affinity Africa, a fast-growing digital banking platform, has successfully raised $8 million in its initial funding round to expand financial services throughout Ghana.

This seed round, led by European venture capital firms Grazia Equity and BACKED VC, demonstrates strong investor confidence in fintech solutions addressing financial inclusion challenges across the continent.

Bridging the Financial Gap in Ghana

Ghana’s banking landscape has long been limited by strict regulations, limiting the spread of digital banking compared to neighboring nations.

Affinity Africa has strategically tackled these barriers by demonstrating strong risk management capabilities while aligning with the government’s financial inclusion objectives. The platform has focused particularly on microfinance licenses to better serve underbanked populations.

Since its October 2024 launch, Affinity Africa has already onboarded over 50,000 clients, an impressive achievement in such a short span.

Even more notable is the fact that 65% of these customers are first-time bank users, and 60% are women from the informal sector, highlighting the platform’s commitment to financial inclusion.

How P1 Ventures Aims to Address the Uneven Distribution of Capital Across Africa

A Digital-First Banking Model

Founded by Tarek Mouganie, Affinity Africa operates entirely branchless, leveraging a mobile and web-based platform alongside an agent network.

This innovative approach allows the company to offer personal and SME accounts, savings, payments, transfers, investments, and loans without the high costs associated with traditional banks.

Customers benefit from a fee-free model, eliminating monthly fees and transaction charges—an attractive proposition in a market where banking costs are often prohibitive.

The company’s growth has been remarkable, with a 3x year-on-year increase in its customer base and a 35% month-on-month rise in savings since its launch.

Additionally, Affinity Africa’s instant loan product, powered by a proprietary scoring engine, has experienced 30% month-on-month growth, maintaining a non-performing loan (NPL) rate of just 3%.

Why Affinity Africa Stands Out

CEO Tarek Mouganie attributes the company’s rapid success to a customer-centric approach and a unique business model.

“The strong, sustained growth we have seen…shows how much local customers needed a better banking experience, without absurd fees and endless queues,” he stated.

The timing of Affinity Africa’s expansion is particularly favorable. Ghana’s traditional banking sector has been criticized for inefficiencies and high fees, with less than 10% of businesses having access to credit and over 60% of adults lacking formal financial services.

Retail banking assets in Ghana remain significantly lower than the global average, making the digital banking sector ripe for disruption.

However, the company still faces challenges, including navigating regulatory frameworks, building consumer trust in a market cautious of digital finance, and competing with established financial institutions and emerging fintech startups.

Strong Investor Backing and Future Prospects

Affinity Africa’s funding round attracted a host of notable investors, including Enza Capital, Launch Africa, Renew Capital, Finca International, Attijariwafa Ventures, Impact Assets, and Eldon Capital. These investors recognize the firm’s potential to redefine financial services across Africa.

“We are thrilled to support Affinity Africa as they address one of the continent’s most pressing challenges—financial inclusion,” said Mike Mompi, Managing Partner at Enza Capital. “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 an agent network and mobile app, coupled with exceptional execution, is already delivering meaningful growth and measurable impact.”

Backed VC, known for its founder-first approach, expressed strong confidence in Affinity Africa’s leadership. “Tarek has a unique ability to connect with and understand customers,” said Andre de Haes, Founder and Managing Partner at BACKED.

With this latest round, Affinity Africa’s total funding has now reached $13 million. The company plans to use the capital to expand its footprint in Ghana while preparing for international expansion.

While the early growth metrics are promising, the next challenge will be ensuring long-term sustainability and profitability in a dynamic and competitive market.

Early-Stage Startups to Receive Up to $150,000 Grants in StarkWare’s Investment in African Blockchain Innovation

Seamless Banking with Affinity Africa: Loans, Savings, and Digital Solutions

For individuals looking to access seamless financial services, the Affinity Africa app provides a convenient way to manage accounts, apply for Affinity loans, and conduct secure transactions.

Customers in Affinity Ghana can easily find support through the Affinity africa contact number or visit one of the Affinity africa branches for in-person assistance.

Whether you’re interested in savings, credit, or digital banking, Affinity Savings and Loans offers tailored solutions to meet diverse financial needs.

Those seeking quick financing can apply for an Affinity africa loan, which is designed to provide flexible repayment options.

Additionally, with Affinity africa online banking, users can efficiently manage their finances anytime, anywhere, ensuring a hassle-free banking experience.

The Road Ahead

Affinity Africa’s success story is just beginning. As the company scales, its ability to maintain customer trust, adapt to regulatory environments, and offer innovative financial solutions will be critical in achieving long-term impact.

With strong investor backing and a clear vision, Affinity Africa is well-positioned to transform digital banking not only in Ghana but across Africa in the years to come.

How Digital Bank Affinity Africa $8M Seed Funding Will Boost Financial Inclusion Across Ghana