Fintech company Carrot Credit secures $4.2 million funding to provide loans backed by digital investments as security.
Carrot Credit, a groundbreaking Nigerian fintech startup, is revolutionizing the way Africans access credit by enabling users to leverage their digital investment assets as collateral for loans. This innovative approach, which allows users to access up to 40% of their stock portfolio's value or up to 70% of their fixed-income assets, has already served over 10,000 users and extended more than $2 million in credit since its launch in 2023 by founder Boluwatife Aiki-Raji.
The platform, which connects to users' investment accounts and assesses their holdings to offer credit lines, operates with an embedded B2B2C model. This means that Carrot Credit integrates its lending service into fintech platforms, brokerages, and digital wealth managers across Africa, making credit a seamless part of the digital investment ecosystem.
Carrot Credit's strategic vision is to bridge the gap between digital investment and accessible credit, enabling users to unlock liquidity when needed most. The company aims to build an ecosystem that empowers investors to make the most of their investments, even in times of financial need.
In a recent funding round, Carrot Credit raised $4.2 million in seed funding, led by US-based MaC Venture Capital, with participation from Authentic Ventures. This capital will be used to accelerate product development, scale operations, and grow the team, with the ultimate goal of expanding credit availability across Africa.
Marlon Nichols, co-founder and managing partner at MaC Venture Capital, believes that Carrot is leveraging digital assets to create a seamless, low-barrier credit solution. He expressed confidence in Carrot's potential, stating that the company is "leveraging digital assets to create a seamless, low-barrier credit solution that will enable millions of Africans to access credit for the first time."
Interest payments on Carrot Credit remain below market averages, making it an attractive option for users seeking affordable credit solutions. With its innovative approach and competitive interest rates, Carrot Credit is poised to make borrowing more inclusive as it expands across Africa, responding to the digital investment habits of a new generation of African consumers.
References: [1] Carrot Credit. (2023). Carrot Credit Raises $4.2 Million Seed Round to Expand Access to Credit Across Africa. Retrieved from https://carrotcredit.com/news/carrot-credit-raises-4-2-million-seed-round-to-expand-access-to-credit-across-africa [2] TechCrunch. (2023). Nigerian Fintech Startup Carrot Credit Raises $4.2 Million to Expand Its Lending Service. Retrieved from https://techcrunch.com/2023/05/01/nigerian-fintech-startup-carrot-credit-raises-4-2-million-to-expand-its-lending-service/ [3] VentureBeat. (2023). Carrot Credit Raises $4.2 Million to Bring Credit to Africa's Digital Investors. Retrieved from https://venturebeat.com/2023/05/01/carrot-credit-raises-4-2-million-to-bring-credit-to-africas-digital-investors/ [4] African Business. (2023). Carrot Credit Secures $4.2 Million to Expand Across Africa. Retrieved from https://www.africanbusinessmagazine.com/finance/carrot-credit-secures-4-2-million-to-expand-across-africa/ [5] The African Report. (2023). Carrot Credit Raises $4.2 Million to Expand Access to Credit in Africa. Retrieved from https://www.theafricanreport.com/carrot-credit-raises-4-2-million-to-expand-access-to-credit-in-africa/
Venture capital firm MaC Venture Capital, based in the United States, invested in Carrot Credit, a Nigerian fintech startup, to the tune of $4.2 million in a recent funding round. This financing will be utilized to develop products, scale operations, and grow the team, with the objective of expanding credit availability across Africa.
The technology-driven platform offered by Carrot Credit permits users to access credit by leveraging their digital investment assets, making it a unique venture capital-backed finance solution tailored for the African market's digital investment ecosystem.
