Affinity Africa, a Ghana-based digital banking platform, has successfully closed an $8 million oversubscribed Seed Round. The funding round was led by Grazia Equity and BACKED VC, marking both firms’ first investment in an African venture. With this capital infusion, Affinity Africa aims to accelerate its mission of providing accessible and affordable banking solutions to individuals and micro, small, and medium enterprises (MSMEs) across the region.

Empowering the Underserved with Digital Banking Solutions

Since its official launch in Ghana in October 2024, Affinity Africa has onboarded over 50,000 customers, with 65% previously unbanked and 60% being women operating in the informal sector. By leveraging a branchless model powered by mobile and web applications, the platform ensures that financial services reach those traditionally excluded from the banking system. The company’s product suite includes personal and SME accounts, savings, payments, mobile money transfers, investments, and instant loans.

Rapid Growth and Market Impact

Affinity Africa has demonstrated significant momentum, with its customer base growing over threefold year-over-year. Monthly savings deposits have increased by 35% since the mobile app’s launch, while instant loan disbursements have grown by 30% month-on-month, maintaining a non-performing loan (NPL) rate of just 3%. The bank's operational efficiency, coupled with the elimination of monthly fees and transaction charges, has positioned it as one of the most cost-effective financial institutions in the region.

Bridging the Financial Gap in Africa

Africa’s banking sector remains one of the fastest-growing and most profitable globally, yet millions remain unbanked due to high fees and structural inefficiencies in traditional banking. In Ghana alone, retail banking assets account for just 33% of GDP, significantly below the global average of 70%. Affinity Africa seeks to bridge this gap by offering low-cost, user-friendly financial products designed specifically for underserved communities.

Investor Confidence and Strategic Backing

The Seed Round saw participation from key investors, including Enza Capital, Launch Africa, Renew Capital, Finca International, Attijariwafa Ventures, Impact Assets, and early backer Eldon Capital. BACKED VC’s founder, Andre de Haes, praised Affinity’s founder, Tarek Mouganie, for his deep understanding of banking regulation and strategy. Investors expressed strong confidence in the platform’s ability to scale efficiently while maintaining financial sustainability.

A Vision for Expansion and Long-Term Impact

With this latest funding, Affinity Africa plans to deepen its footprint in Ghana while preparing for international expansion. The company’s hybrid approach—combining digital banking with an agent network—has been instrumental in reaching diverse customer segments. By maintaining strong governance and a customer-centric approach, Affinity Africa aims to redefine financial accessibility in Sub-Saharan Africa.

Setting a New Standard for Responsible Digital Banking

Board member Catherine Engmann highlighted Affinity Africa’s ability to balance rapid growth with sound governance and risk management. The platform’s ability to expand deposits and lending while keeping NPLs low underscores its sustainable financial model. As the company scales, it is expected to set new benchmarks for responsible digital banking, demonstrating that financial inclusion can be achieved alongside profitability.

Affinity Africa’s success reflects a broader shift toward innovative, technology-driven banking solutions that cater to the unbanked population. By leveraging a low-cost, branchless model, the company is poised to play a transformative role in Africa’s financial sector. With robust investor backing and a clear expansion strategy, Affinity Africa is well-positioned to become a leading force in digital banking across the continent.