TechFlow news, May 24 — According to Crowdfund Insider, African digital lending startup Carrot has announced a $4.2 million seed funding round led by MaC Venture Capital, with participation from Partech Africa and Authentic Ventures.
Carrot enables users to access credit by pledging stocks, fixed-income products, cryptocurrencies, and other alternative investment assets as collateral. The platform aims to address the limited traditional credit scoring infrastructure in African markets, providing individuals and small businesses with reliable and affordable access to credit.
Since its launch, Carrot has disbursed over $2 million in credit and served more than 10,000 users. The new funding will be used to expand the team, scale operations, and accelerate product development, including investments in artificial intelligence to enhance its credit scoring, risk management, and fraud prevention systems.
Bolu Aiki-Raji, founder and CEO of Carrot, said the company plans to expand its services to other African countries by the end of 2025.
