Carrot Credit, a Nigerian fintech startup set to transform how Africans access credit, has raised $4.2 million in seed funding to expand its credit infrastructure across the continent.
Carrot Credit, which allows users to secure loans using digital investment assets—including stocks, ETFs, and cryptocurrencies—as collateral, raised the seed round from MaC Venture Capital, with participation from Authentic Ventures, underscoring growing investor interest in asset-backed lending models tailored for emerging markets.
“We’re excited to announce that we have raised $4.2 million in seed funding to scale our asset-backed lending infrastructure across Africa,” announced the firm. “With this new round, we’re doubling down on our goal to make asset-backed credit more accessible across the continent. We’ll be expanding our team, deepening integrations with digital investment platforms to embed Carrot into their ecosystems. We’re just getting started, and we’re building for every African who’s ever invested in something and asked, “Can I do more with this?”
From Concept to Continental Ambition
Founded in 2021, Carrot Credit set out to solve a fundamental problem in Africa’s financial landscape: the lack of access to affordable credit for individuals without traditional collateral like land titles or salary slips. With the rise of digital investment platforms in Africa, Carrot Credit saw an opportunity to bridge the gap by turning users’ digital portfolios into leveraged credit lines.
Initially operating in Nigeria, Carrot Credit partnered with local investment platforms and crypto exchanges to test its lending engine. By late 2022, the startup had already processed over $1 million in collateralized loans, gaining traction among young, tech-savvy professionals who invest in U.S. stocks, Nigerian mutual funds, and digital currencies.
In early 2023, the company quietly raised a $500,000 pre-seed round from a mix of local angel investors and early-stage funds. This allowed them to build out their backend systems, establish compliance protocols, and begin regional pilot programs in Ghana and Kenya.
Reimagining Collateral in a Digital Age
Unlike traditional lenders, Carrot Credit doesn’t require physical assets. Instead, it taps into the growing wealth stored in digital wallets and investment apps. Through partnerships and secure API integrations, the platform can assess the value of a user’s holdings in real-time and issue loans accordingly—often within minutes.
This approach aligns with Africa’s rapidly growing digital economy. Millions of young Africans are investing in global and local markets, yet lack short-term liquidity options without selling off their assets. Carrot Credit empowers them to unlock liquidity without liquidation.
The Road Ahead
With the new $4.2 million seed funding, Carrot Credit plans to scale operations to more African markets, including South Africa, Kenya, and Egypt. Expand its team, focusing on credit risk, engineering, and regional partnerships and deepen integrations with investment and crypto platforms to enhance lending accuracy and security.
As more Africans turn to digital assets for wealth building, Carrot Credit’s model could become a cornerstone of the continent’s next financial evolution—one where investments and credit work hand-in-hand to create economic empowerment.
