Carrot Credit
Overview
Carrot Credit is a Nigerian fintech company focused on providing digital lending services by allowing users to leverage their investment assets as collateral for loans. Founded in 2023 by Boluwatife Aiki-Raji, the company has raised $4.2 million in seed funding to expand its operations across Africa. The startup's headquarters is located in Lagos, Nigeria. Instead of relying on traditional credit scores, Carrot Credit enables users to connect their investment accounts, which may include stocks, ETFs, bonds, or cryptocurrencies, to access loans.
Recent Developments
- May 2025: Carrot Credit announced it had raised $4.2 million in seed funding led by MaC Venture Capital, with participation from Authentic Ventures and Partech Africa. This funding is aimed at supporting the expansion of Carrot Credit's digital lending platform across Africa.
- The unique asset-based lending model: Carrot Credit employs an innovative approach that allows users to borrow against the value of their investments without having to liquidate these assets. Users can leverage up to 40% of their stock portfolios and up to 70% of their fixed-income investments. This framework presents a significant shift from traditional models dependent on credit scores.
- Integration with digital platforms: The platform heavily focuses on integrating with digital wealth management tools, brokerages, and fintech applications through API connections, providing seamless access to credit services within existing financial ecosystems.
- Notable achievements: Since its inception, Carrot Credit has processed over $2 million in loans, serving more than 10,000 users. Their differentiated approach is gaining traction among retail investors across the continent, setting the company apart in a competitive digital lending sector.
- Strategic positioning: The company targets both directly consumers and acts as a credit infrastructure provider for fintech platforms. By embedding its services within existing financial systems, Carrot aims to extend credit availability further and cater to Africa's burgeoning digital investment community.
Company Information
| Attribute | Information |
|---|---|
| Founding Date | 2023 |
| Headquarters | Lagos, Nigeria |
| Founders | Boluwatife Aiki-Raji |
| Revenue | Not publicly disclosed |
| Profits | Not publicly disclosed |
| Key Investors | MaC Venture Capital, Partech Africa, Authentic Ventures |
| Industry | Fintech, Digital Lending |
| Number of Employees | Not publicly disclosed |
Early History
Carrot Credit was established in Lagos, Nigeria, in 2023 by Boluwatife Aiki-Raji, who envisioned a more inclusive financial system that empowered retail investors through innovative credit solutions. The idea was rooted in recognizing the potential value of digital investments which could serve as collateral for borrowing. Carrot Credit aimed to address the lack of accessible credit options, which typically relied on traditional credit scoring mechanisms that many potential borrowers found challenging to meet. This spurred the development of their asset-backed lending model, designed to unlock financial liquidity without forcing asset liquidation. The innovative approach quickly gained attention from venture capitalists, leading to substantial seed funding that enabled early-scale operations.
Company Profile and Achievements
Carrot Credit operates a digital lending platform that leverages financial assets as collateral, allowing customers to maintain ownership while accessing credit. The service grants loans against digital assets without necessitating their sale, opposing traditional financial models that require asset liquidation. Here are some key achievements and initiatives:
- Rapid Growth: Since its inception, Carrot Credit has successfully onboarded over 10,000 users.
- Innovative Lending Model: The company’s approach includes using users' investment accounts as collateral, bypassing the conventional credit score reliance, and allowing up to 70% collateralization on fixed-income securities such as bonds.
- B2B2C Integration: Carrot Credit has embedded its lending services within various fintech platforms, making its credit services accessible to a broader audience that is already engaging with digital wealth management.
- Market Impact: Positioned as one of the pioneering fintech companies offering an embedded B2B2C model in Africa, Carrot Credit has set a precedent in asset-backed digital lending, distinguishing itself from peers by focusing on financial inclusion and accessibility.
- Revenue and Profitability: Carrot also generates revenue from the interest charged on loans offered with below-market interest rates, benefiting its end-users with cost-efficient credit solutions.
Current Operations and Market Position
Currently, Carrot Credit is strategically expanding its operations across Africa, leveraging its recent funding to scale and enhance its technological infrastructure. By focusing on a flexible and user-centric fintech model, Carrot aims to expand its market share by targeting both individual retail investors and partnering with financial institutions to embed their services directly within investment platforms. This approach positions Carrot as a favorable alternative in Africa's ever-evolving fintech landscape. Their strategy involves maintaining a competitive edge through low-interest rates and high collateral value loans compared to traditional lending services.
Carrot Credit Company Careers
As an emerging startup, Carrot Credit offers various career paths within fintech innovation, asset management, and tech development. Known for fostering an inclusive workplace, the company provides opportunities for growth in technology, financial analysis, and customer relations. Carrot Credit seeks talented individuals who are passionate about transforming credit services in emerging markets. Job seekers interested in contributing to a pioneering fintech landscape can explore roles at Carrot Credit that focus on leveraging technology for financial inclusivity.
Carrot Foundation
The Carrot Foundation is an initiative proposed to support financial literacy and investment readiness among young adults and small business owners in Africa. Aimed at promoting digital investment competence, the foundation will conduct workshops and modules for the financially underserved population, empowering them to leverage tools like Carrot Credit for sustainable financial well-being.
Conclusion
Carrot Credit is setting a significant benchmark in the fintech industry by addressing the gaps in traditional lending practices and promoting asset-backed lending. With their innovative model and strategic expansion plans, Carrot Credit holds potential to redefine credit solutions across Africa. By leveraging their recent funding, enhancing integration with fintech ecosystems, and promoting financial accessibility, Carrot Credit stands to impact significantly in creating a more connected and inclusive financial future.