Ghanaian Fintech Affinity Secures $8 Million Seed Funding
In a significant development for Ghana’s financial technology sector, Affinity Africa, a promising fintech startup, has successfully raised $8 million in seed funding. This funding round, led by European venture capital firms Grazia Equity (Germany) and BACKED VC (London), marks a notable milestone for the company and the broader African fintech landscape.
The Significance of Affinity’s Funding
Affinity Africa’s funding comes at a time when mobile money solutions have become the dominant financial tool in Ghana. The country has seen a remarkable surge in mobile money transactions, with the total value reaching a record GH¢3.0192 trillion in 2024, a 57.90% year-on-year growth. This growth underscores the critical role mobile money plays in deepening financial inclusion and driving economic activity.
Despite the dominance of mobile money, traditional banking in Ghana remains highly profitable. However, inefficiencies such as high operational costs, extensive paperwork, and lengthy onboarding processes have left millions underserved. Affinity Africa aims to bridge this gap by offering a digital-first alternative that provides inclusive and affordable financial services.
Affinity’s Impact and Strategy
Since its launch in October 2024, Affinity Africa has onboarded over 50,000 customers, with 65% of them having never accessed formal banking products before. This achievement highlights the company’s success in reaching underserved populations, particularly women working in the informal sector. Affinity’s hybrid model, which blends online banking with offline touchpoints via its agent network, has been instrumental in driving digital adoption.
The company’s mobile banking services offer a range of financial products, including savings, payments, investments, and transfers to both banks and mobile money wallets. Notably, 89% of deposit inflows come from mobile money top-ups, reflecting the strong integration of mobile money into Affinity’s operations.
The Road Ahead
With the new funding, Affinity Africa plans to scale its impact across Ghana and beyond. The company aims to enhance its digital banking services and increase access to credit for small businesses and individuals who have historically been excluded from traditional banking. This expansion is expected to contribute significantly to Ghana’s financial inclusion goals and support the country’s transition to a cashless economy.
Affinity Africa’s $8 million seed funding is a testament to the potential of fintech to revolutionize financial services in Africa. By addressing the challenges of traditional banking and leveraging the widespread adoption of mobile money, Affinity is well-positioned to make a lasting impact on the financial landscape. As the company continues to grow, it will be exciting to see how it shapes the future of digital banking in Ghana and beyond.
