Affinity Africa announces it has raised US$8 million in an oversubscribed Seed Round led by Grazia Equity and BACKED VC to accelerate its mission of delivering affordable and accessible financial services to the underserved and unbanked communities. The digital banking platform, which focuses on individuals and micro, small, and medium enterprises (MSMEs), officially launched in Ghana in October 2024 and has onboarded over 50,000 customers to date, 65% of whom never had access to formal banking products and over 60% are women operating in the informal sector. 

Founded by entrepreneur Tarek Mouganie, Affinity leverages a branchless model, powered by a mobile and web app as well as an agent network, and a proprietary technology platform to provide a full suite of banking services in a more efficient and accessible way. The company is more efficient than traditional banks and therefore able to offer products with no monthly fees or transaction charges, making Affinity one of the most affordable players in the industry. Its product portfolio includes personal and SME accounts, savings, payments, transfers to banks and mobile money wallets, investments, and loans.

Since its foundation in 2022 and official launch in 2024, Affinity’s growth rates have surpassed expectations. The customer base grew over 3x year-over-year (YoY) with savings growing over 35% month-on-month since the launch of the mobile app in 2024. Using their proprietary scoring engine, Instant Loans have also accelerated, growing 30% month-on month with an NPL of 3%. With this funding, the company plans to expand its reach in Ghana ahead of its international expansion to continue driving financial inclusion across Africa. 

“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” said Tarek Mouganie, Founder and Group CEO of Affinity Africa. “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 traditional banking industry is one of the most profitable and high growth in the world. In Ghana alone, traditional banks have seen a growth of 24% YoY since the Covid-19 pandemic, and have an average after tax RoE of 34%, significantly higher than the global average. Yet, traditional banks still rely heavily on fees and are burdened with structural inefficiencies, high costs, extensive in-person paperwork requirements, and long onboarding times which has left millions outside the system. Currently, less than 10% of businesses have access to credit and over 60% of adults in the continent lack access to formal financial services. With retail banking assets at just 33% of GDP —less than half of the global average of 70%— and a young, rapidly growing population, the demand for innovative, cost effective solutions like Affinity Africa is more urgent than ever. 

“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”, said Andre de Haes, Founder and Managing Partner at Backed. 

The $8 million Seed Round was led by Grazia Equity and BACKED VC. Grazia Equity is one of Europe’s leading early-stage venture capital firms with seven companies in their portfolio that have exceeded the billion-dollar valuation. BACKED is a human-centric fund investing in exceptional founders, at Seed, with over 80 investments to date. Affinity is the first African investment for both. Other participants in the round include Enza Capital, Launch Africa, Renew Capital, Finca International, Attijariwafa Ventures, Impact Assets, and prominent angels, joining early backer Eldon Capital. 

“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 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”. 

“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”, says Catherine Engmann, Board Member of Affinity Africa.