With a model inspired by Robinhood and BlockFi, Carrot is building Africa’s digital asset lending bridge.
In a continent where access to credit is often restricted by outdated systems and rigid financial structures, Carrot, a Nigerian digital lending startup, is reimagining collateral through the lens of modern investments. The crypto-friendly fintech has just raised $4.2 million in seed funding to scale its asset-backed lending infrastructure across Africa.
The round was led by MaC Venture Capital, with participation from Partech Africa and Authentic Ventures—a strong vote of confidence in Carrot’s mission to democratize liquidity for Africa’s emerging investor class.
“Access to credit shouldn’t be limited by geography or legacy infrastructure,” said Bolu Aiki-Raji, Carrot’s Co-Founder and CEO.
“People are already investing in crypto, stocks, and bonds, but there’s no system that helps them unlock liquidity when it matters most. Carrot is building that bridge.”
From Portfolios to Purchasing Power
Launched in 2023, Carrot enables users to take out loans against a wide variety of assets—stocks, government bonds, crypto, and other alternative investments—without having to liquidate them. Using real-time API integrations with investment platforms, Carrot verifies asset holdings, places a lien, and lets users access:
- Up to 40% of stable stock portfolios
- Up to 10% for volatile equities
- Up to 70% of fixed-income holdings like treasury bills
For example, a Nigerian investor with ₦1M in treasury bills can instantly unlock a ₦700,000 loan without selling their assets.
Since launch, Carrot has originated over $2 million in loans and crossed 10,000 users, signaling demand for more agile credit options among digitally native Africans.
Tailored Lending for a Fragmented Market
In a region plagued by double-digit interest rates and strict collateral requirements, Carrot is offering a compelling alternative. Its loans come with flexible repayment terms—3, 6, or 12 months—or rolling monthly repayments, with interest rates below the national average.
More than just a retail play, Carrot’s strategy is rooted in embedded finance. The company is positioning itself as a B2B2C solution, integrating directly into fintech apps, brokerages, and wealth platforms that want to offer credit without building lending infrastructure from scratch.
“We were seeing everyday Africans holding meaningful investments—stocks, stablecoins, fixed income—but they were still shut out of formal credit,” said Aiki-Raji.
“Our goal was simple: let people use what they already own.”
Investors See the Future of Credit in Digital Assets
For lead investor Marlon Nichols, General Partner at MaC Venture Capital, Carrot’s hybrid model represents a breakthrough for emerging markets.
“What excites me is how Carrot is unlocking liquidity from modern portfolios in regions where credit access has historically lagged,” Nichols said.
“They’re bringing an evolved fintech model to one of the world’s most promising and underserved markets.”
The investment underscores growing global interest in Africa’s fintech renaissance—particularly at the intersection of digital assets and real-world financial services.
A Local Solution with Global Inspiration
Inspired by global players like BlockFi and Robinhood, Carrot is localizing a proven playbook to meet the financial needs of a new African generation, tech-savvy, investment-minded, and credit-starved.
“We’re not just building a lending app,” said Aiki-Raji.
“We’re building an ecosystem where assets, whether crypto or government bonds, can unlock real-world opportunity.”
As the lines between crypto, fintech, and traditional investing continue to blur, Carrot is betting big on a simple idea: your portfolio should be more than just numbers on a screen, it should work for you.
