Nigerian digital lending startup Carrot, has secured US$4.2 million in seed funding to expand access to credit for individuals and businesses across Africa.

Carrot enables users to unlock credit by using assets such as stocks, fixed-income instruments, crypto, and other alternative investments as collateral. Since its launch, the startup has originated over $2 million in credit and has served more than 10,000 users.

 

“Access to credit shouldn’t be limited by geography or legacy infrastructure,” said Bolu Aiki-Raji, Carrot’s Founder and CEO.

“People in Nigeria and across Africa are already investing in digital assets – but there’s no ecosystem to help them unlock liquidity when it matters. Carrot is building that bridge, helping users leverage their investments and take cash out when they need liquidity the most.”

 

The $4.2 million seed round was led by:

  • MaC Venture Capital

with additional backing from:

  • Partech Africa and

  • Authentic Ventures

The funding will support team expansion, operations scaling, and accelerated product development.

Through API integrations with digital investment platforms, Carrot verifies users’ asset positions and places liens on them. This enables borrowers to unlock liquidity without liquidating their holdings. Users can access up to 40% of the value of stable stock portfolios, 10% for volatile equities, and up to 70% for fixed-income assets such as government bonds and treasury bills. For example, someone holding ₦1 million in stable stocks could qualify for a ₦400,000 loan, while fixed-income investors could access as much as ₦700,000.

The model tackles a major issue in Africa’s financial ecosystem: limited access to credit due to high interest rates and rigid eligibility criteria.

“People were investing in all types of things – stocks, crypto, fixed income – but many didn’t recognise those investments as worth anything,” said Bolu Aiki-Raji, Co-Founder and CEO of Carrot Credit.

“That was the initial idea: Why can’t this be collateral?”

Carrot offers flexible repayment terms, with users able to choose between fixed durations of 3, 6, or 12 months – or opt for monthly repayments at their own pace. According to the company, its interest rates are below the market average, making the product especially appealing to retail investors. Since its launch, Carrot has processed over $2 million in loans and built a user base of more than 10,000, signaling rapid traction in Nigeria’s competitive fintech sector.

“What excites me about this investment is how Carrot is leveraging digital assets to create a seamless, low-barrier credit solution in markets where credit has traditionally been out of reach,” said Marlon Nichols, Co-Founder and Partner at MaC Venture Capital.

“We see the fintech space evolving rapidly, especially in regions like Africa, where traditional credit systems have struggled to keep pace with innovation.

This investment not only strengthens our portfolio but also positions us in one of the most exciting but underserved sectors in global fintech.”

 

Carrot operates an embedded B2B2C model, aiming to partner with fintechs, brokerages, and digital wealth platforms. This strategy fits into the continent’s growing embedded finance trend, where financial services are seamlessly woven into non-financial apps and platforms to enhance user experience and broaden access.

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Inspired by global players like BlockFi and Robinhood, Carrot is bringing asset-backed lending to an African market where such services are still emerging. By helping everyday investors unlock the value of their portfolios, Carrot is building a financial bridge between digital assets and real-world credit access.

 

 

 

 

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