African digital lending startup Carrot secures $4.2 million in seed funding.

According to Deep Tide TechFlow news on May 24, as reported by Crowdfund Insider, the African digital lending startup Carrot announced the completion of a $4.2 million seed round financing, led by MaC Venture Capital, with participation from Partech Africa and Authentic Ventures.

Carrot allows users to obtain credit by using stocks, fixed income products, cryptocurrencies, and other alternative investment products as collateral. The platform aims to address the limited traditional credit scoring infrastructure in the African market, providing individuals and small businesses with reliable and affordable credit channels.

Since its launch, Carrot has issued over $2 million in credit, serving more than 10,000 users. This round of financing will be used to expand the team, broaden business operations, and accelerate product development, including investments in artificial intelligence to enhance its credit scoring, risk management, and fraud prevention systems.

Carrot founder and CEO Bolu Aiki-Raji stated that the company plans to expand its services to other African countries by the end of 2025.