GHANA – Affinity Ghana, a full-scale digital bank based in Ghana, has secured funding for an undisclosed amount from the Africa-focused impact investment firm Renew Capital.
Affinity will use the funding to tackle the lack of bank accounts among 350 million adults in Africa. Their mission lies in rendering banking services accessible to all, with an emphasis on those who have been sidelined by the conventional banking system.
The digital bank was established by Tarek Mouganie and offers a broad range of banking services. These include checking and savings accounts, transfers, payment processing, and loans.
A unique aspect of Affinity’s business model is their no-account-fee policy, along with offering competitive interest rates, which contributes to making banking more affordable.
“At Affinity, we’ve developed a fully integrated platform dedicated to promoting financial inclusion by effectively addressing the challenges faced by individuals and MSMEs without access to financial services across sub-Saharan Africa,” stated the Group CEO and Founder of Affinity Africa, Tarek Mouganie.
Since its commencement in 2020, which began with the acquisition of a microfinance business in Ghana, Affinity has been on a meteoric rise. After receiving a license upgrade from the Bank of Ghana in 2022, it has served over 17,000 customers.
The bank states that it extended US$12.5 million in loans in the previous year alone, and helped clients save up to US$26 million.
Backing Affinity in its quest to democratize banking are several leading finance powerhouses such as Enza Capital, Launch Africa Ventures, Grazia Equity, and Nour Nouf Knowledge Company. Among these strong supporters, it aims to continue its mission to facilitate accessible banking for all.
A first for Renew Capital
This move marks a significant first for Renew Capital, not just in Ghana, but across the continent.
It comes shortly after the February 2024 launch of their latest tech fund, Renew Venture Lab Fund 2 (RVL2). This fund targets investments in tech-driven, asset-light businesses across Africa.
Renew Capital is known for supporting innovative, high-growth companies.
They manage investments for Renew Capital Angels and previously launched the Renew Venture Lab Fund series focused on early-stage tech companies with a “founder-centric” approach.
Following the closure of Renew Venture Lab Fund 1, they introduced RVL2, aiming to invest in roughly 50 tech startups across Africa.
“The most successful companies in RVL2 will be eligible for larger investments from Renew Capital Fund 1, our growth-stage investment fund,” Renew Capital stated.
“This is our first investment in Ghana,” said JC Oelofse, Renew Capital’s Head of Investment, following the Affinity deal.
“We’re excited to support their expansion goals across the continent, where millions still lack access to financial services.”
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