Affinity Africa closes $8mn in seed round to provide affordable banking in Ghana

Affinity Africa, a digital banking platform focused on providing affordable and accessible financial services to underserved and unbanked communities, recently announced the successful closure of an oversubscribed $8 million Seed Round. The funding was led by Grazia Equity and BACKED VC, showcasing strong support from both European and African investors. Tarek Mouganie, the Founder and Group CEO of Affinity Africa, emphasized that this funding presents a unique opportunity to drive real and sustainable change, particularly in Ghana where the company is based. With a vision to address the financial inclusion gap in Africa, Affinity Africa has set its sights on leveraging the investment to scale up operations in Ghana and make a significant impact. The company has already onboarded 50,000 customers since its launch in October last year and aims to reach even more unbanked individuals in the region. Mouganie highlighted that in Ghana alone, there are 11 million adults without bank accounts, representing a massive market opportunity. This Seed Round will enable Affinity Africa to expand its platform and offerings to cater to this segment of the population, providing them with much-needed financial services. The company's deployment strategy involves a focus on enhancing accessibility, affordability, and financial literacy among its customer base. By offering free accounts and driving revenue through lending, Affinity Africa aims to bridge the lending gap in sub-Saharan Africa and empower individuals and businesses with the tools they need to thrive economically. Mouganie acknowledged that Ghana and other African countries face similar challenges in terms of financial inclusion, making it crucial for companies like Affinity Africa to innovate and set new standards for banking on the continent. The company's unique model as a full-fledged digital bank sets it apart from traditional players in the market. Through a combination of technology, risk frameworks, and AI-powered solutions, Affinity Africa is streamlining account opening processes, credit scoring, and lending operations to better serve its customers. Looking ahead, Mouganie emphasized the importance of leveraging technology to reduce costs and enhance efficiency in the banking sector. By adopting AI and data-driven approaches, companies like Affinity Africa can drive financial inclusion and reshape the banking landscape in Africa. Mouganie also highlighted the significance of data privacy regulations and the role of regulators in supporting innovation while safeguarding consumer interests. As the company looks towards international expansion and continued growth, maintaining a strong focus on data privacy and security will be paramount. Overall, Affinity Africa's successful Seed Round signals a positive step towards fostering financial inclusion and driving economic empowerment in Ghana and beyond.