Renew Capital makes its debut investment in Ghana by backing Affinity, a local digital bank. Renew Capital, a pan-African impact investment firm has made its debut investment in Ghana by partnering with Affinity, a fintech company.
The collaboration aims to support Affinity’s expansion efforts across the African continent.
Renew Capital Makes Debut Investment in Ghana
Renew Capital’s investment in Affinity marks its inaugural venture into Africa, following the recent launch of its latest tech fund, Renew Venture Lab Fund 2, in February 2024. The firm’s focus is on supporting asset-light, tech-enabled businesses throughout the continent.
Launch Africa Ventures also announced its investment in Affinity on March 23, 2024, adding Affinity to its portfolio companies before Renew Capital’s investment. Renew Capital is known for backing innovative companies with significant growth potential and manages investments for Renew Capital Angels.
The Renew Venture Lab Fund Series
Before introducing the new tech fund in February 2023, the firm initiated the Renew Venture Lab Fund series, which prioritizes early-stage tech companies and adopts a “founder first” approach.
With the closure of Renew Venture Lab Fund 1, Renew Capital launched Renew Venture Lab Fund 2 (RVL2), which aims to invest in approximately 50 tech startups across Africa.
According to the company, Renew Capital, “the most successful companies in RVL2 will be eligible for larger investments from Renew Capital Fund 1, the firm’s growth-stage investment fund.”
Following the investment in Affinity, JC Oelofse, Renew Capital’s head of investment, highlighted that this marks Renew Capital’s debut investment in Ghana. They express eagerness to support Affinity’s expansion ambitions across the continent, recognizing the vast number of people yet to be reached in terms of financial inclusion.
Affinity Expanding Its Reach in Ghana
Affinity, a digital banking platform operational since 2010, expanded its reach by acquiring a microfinance business in Ghana in February 2020. Subsequently, it obtained a savings and loan license from the Bank of Ghana in March 2022.
The platform offers a range of services, including current, savings, and investment accounts, as well as transfers, payments, and loans. Its primary goal is to enhance financial inclusion among Africa’s underserved populations.
The Foundation of Affinity’s Strategy
CEO and founder Tarek Mouganie underscores the foundation of Affinity’s strategy for promoting financial inclusion, emphasizing affordability, fully digital channels, and low-cost deposits.
“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,” the CEO stated.
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