Ghana-based digital banking platform, Affinity Africa has raised $8 million in an oversubscribed seed funding round to expand its reach and enhance financial inclusion across the continent.
The investment was led by Grazia Equity and BACKED VC, with participation from Enza Capital, Launch Africa, Renew Capital, Finca International, Attijariwafa Ventures, Impact Assets, and several angel investors.
The funding comes less than a year after Affinity Africa officially launched its operations in October 2024. Since then, the platform has on-boarded over 50,000 customers in Ghana, 65% of whom were previously unbanked.
Women in the informal sector make up 60% of its customer base, asserting the company’s impact on financial inclusion.
With a model that eliminates monthly fees and transaction charges, Affinity Africa offers a cost-effective alternative to traditional banks, whose high fees and cumbersome processes have kept millions of Africans outside the financial system.
The company provides a full suite of digital banking services, including personal and SME accounts, savings, payments, transfers, investments, and loans, all accessible through a mobile app and agent network.
Founder and Group CEO of Affinity Africa, Tarek Mouganie, stated that the company’s strong, sustained growth seen since the launch of its mobile app shows how much local customers needed a better banking experience, without absurd fees and endless queues.
“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.”
The African banking sector is highly profitable, with Ghanaian banks reporting a 24% year-on-year growth since the COVID-19 pandemic. However, traditional banking services remain out of reach for many due to high costs, extensive paperwork, and lengthy onboarding processes. Affinity Africa aims to bridge this gap by offering a more accessible and affordable alternative.
BACKED VC’s founder and managing partner, Andre de Haes, commended Affinity’s leadership, stating: “At BACKED, we are founder first, and we could not think of a better person to build Africa’s local bank than Tarek. He has a unique ability to connect with and understand customers, which has materialised into extremely impressive early user numbers.”
The funding will enable Affinity Africa to strengthen its foothold in Ghana before expanding into other African markets. The company plans to scale its operations, enhance its technology infrastructure, and reach more unbanked populations across the continent.
Managing partner at Enza Capital, Mike Mompi, affirmed the significance of Affinity’s model: “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.”
Affinity Africa’s success so far is ensuring responsible banking in Africa, proving that a sustainable, technology-driven financial institution can drive apt financial inclusion while maintaining strong governance.
