Affinity Africa Secures $8M to Revolutionize Digital Banking in Ghana

Ghanaian fintech startup Affinity Africa has raised $8 million in seed funding to expand its reach and redefine banking for underserved communities.

The seed round was led by European VC firms Grazia Equity (Germany) and BACKED VC (London). Other investors include Enza Capital, Launch Africa, Renew Capital, Finca International, Attijariwafa Ventures, Impact Assets, joining Eldon Capital an early backer.

In a country where mobile money dominates transactions, but traditional banks remain highly profitable, Affinity is positioning itself as a digital-first alternative offering inclusive and affordable financial services. Despite the growth of Ghana’s banking sector, accessibility remains a challenge. Many banks rely on high fees, extensive paperwork, and lengthy onboarding processes, leaving millions without access to essential financial services.

According to the World Bank, over 60% of adults in Africa lack formal banking options, while fewer than 10% of businesses can secure credit. Affinity aims to bridge this gap by providing seamless digital banking solutions tailored to individuals and micro-enterprises. Since launching in October last year, Affinity has onboarded over 50,000 customers. Impressively, 65% of its users had never engaged with a formal banking institution before, and over 60% are women operating in the informal sector.

Affinity’s banking model is built to support both individuals and micro-enterprises, recognizing the fluid relationship between personal and business finances in many African economies. The platform offers free savings and current accounts without transaction limits, while an automated system assesses users’ transaction histories to generate credit scores.

After a few months of activity, customers become eligible for credit lines with monthly interest rates ranging from 3-7%. To date, Affinity has disbursed over $15 million in loans, with instant loans growing at a rate of 30% month-over-month and a non-performing loan (NPL) rate of just 3%.

With its new funding, Affinity Africa plans to scale its impact across Ghana, enhancing its digital banking services and increasing access to credit for small businesses and individuals who have historically been excluded from traditional banking.

Source: Techcrunch