In a bold move to redefine how credit works for Africa’s digital generation, Nigerian fintech Carrot Credit has secured $4.2 million in seed funding. The round was led by MaC Venture Capital, with participation from Authentic Ventures, and aims to scale Carrot’s unique asset-backed lending platform across the continent.
This funding milestone positions Carrot Credit as one of the continent’s earliest movers in an emerging space: lending agrainst digital investment assets such as stocks, ETFs, bonds, and cryptocurrencies.
Turning Investment Assets into Liquidity
Carrot Credit was founded in 2023 by Boluwatife Aiki-Raji, a former investment analyst who noticed a strange contradiction among young Africans: more people were investing through platforms like Risevest, Bamboo, and Trove, but when cash was needed, their only options were often high-interest digital loans or asking friends and family.
“People were building investment portfolios, but those assets were invisible when it came to accessing credit,” says Aiki-Raji. “That didn’t make sense. If you can use a car or land as collateral, why not your ETF or your treasury bill?”
Carrot’s innovation lies in letting users leverage their investments without liquidating them. Through secure API integrations with digital investment platforms, Carrot verifies users’ portfolios and places a temporary lien on assets. Based on asset type and volatility, users can access up to 40% of their stock portfolio value and up to 70% for fixed-income securities.
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How It Works
Let’s say a user holds ₦1 million in relatively stable stocks. Carrot allows them to borrow up to ₦400,000 without selling a single share. For more volatile investments, like certain cryptocurrencies, the limit is reduced to manage risk. If the assets drop significantly in value, Carrot Credit can initiate a margin call or partially liquidate to protect both parties.
Loan repayment terms are flexible: users can choose between fixed terms (three, six, or 12 months) or rolling monthly repayments. Unlike most digital lenders who charge exorbitant interest and prioritize short-term repayment, Carrot prides itself on below-market rates and low-barrier onboarding.
A New Credit Scoring System
Traditional credit scoring in Africa is still underdeveloped. Many people lack formal credit histories or bank statements. Carrot sidesteps this entirely by focusing on what users own rather than what they earn.
This model isn’t new globally. US-based companies like BlockFi, Lantern Finance, and SALT have popularized asset-backed lending using crypto and stocks. But in Africa, where mobile money and digital banking are more dominant than investment accounts, Carrot’s offering is relatively rare—and potentially transformative.
“What excites me about Carrot is their ability to build trust in new kinds of assets,” says Marlon Nichols, managing partner at MaC Venture Capital. “They’re not just unlocking loans—they’re unlocking confidence.”
Embedded, Scalable, and Built for the Continent
Carrot operates with an embedded B2B2C model, meaning its services are plugged directly into the apps and platforms used by digital investors, fintechs, and neobanks. This strategic integration helps Carrot reach users where they already are—inside their investment dashboards.
It’s also a scalable model. As digital investment platforms grow across Africa, so does the opportunity for Carrot to serve them. According to the company, it has already processed over $2 million in loan volume and supports more than 10,000 users.“We’re not just another lending app,” says Aiki-Raji. “We’re building financial rails that let your wealth work harder for you—without sacrificing your future for your present.”
Competing in a Crowded Fintech Landscape
Nigeria’s lending sector is fiercely competitive. Startups like Carbon, FairMoney, Aella Credit, and Sycamore dominate with quick cash and aggressive loan offers. But Carrot is deliberately carving out a distinct lane—one focused not on emergencies or consumption, but on long-term financial stability.
Where others see borrowers, Carrot sees investors. That’s a powerful psychological and strategic shift, especially in markets where credit is typically reactive, not proactive.The startup generates revenue from interest payments and is actively hiring across credit risk, engineering, and compliance teams as it looks to expand beyond Nigeria.
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Why It Matters
Access to credit remains a huge challenge in Africa, with lending often limited to high-income earners or those with collateral like land and vehicles. Carrot’s model presents a third way: lending based on digital proof of wealth.As more young Africans adopt investing as a form of saving, platforms like Carrot could make borrowing safer, more efficient, and more aligned with users’ financial goals.
The bigger play? Becoming part of the infrastructure of Africa’s financial future. By embedding its services into fintech ecosystems, Carrot is positioning itself not just as a lender—but as a credit layer for the digital economy.
What’s Next
With its fresh capital, Carrot Credit plans to deepen integrations with investment platforms across Ghana, Kenya, and South Africa, expand its backend infrastructure, and roll out new asset classes—potentially including real estate tokens or fractional gold holdings.“Our mission is simple,” says Aiki-Raji. “If you’ve built wealth, no matter how digital or unconventional, you should be able to use it.”