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Home Start-up Nigerian BaaS Startup Anchor Secures $2.4 Million in Seed Funding to expand its product offerings

Nigerian BaaS Startup Anchor Secures $2.4 Million in Seed Funding to expand its product offerings

Launched in August 2022, Anchor simplifies the process of building banking products, shortening it from years to days

Women's Tabloid News Desk
Women's Tabloid News Desk

Anchor, an emerging fintech startup specializing in embedded finance, has recently secured an impressive $2.4 million in a seed funding round, with Goat Capital taking the lead in investment. The funding round witnessed active participation from renowned supporters including FoundersX, Rebel Fund, Pioneer Fund, Y Combinator, Byld Ventures, and Future Africa, among others. Anchor’s unique approach to financial services has garnered significant attention and investments, positioning it as a potential disruptor in the fintech industry, particularly for fintech companies and SMEs.

Anchor made its public debut in August 2022 after a successful $1 million pre-seed funding round and participation in Y Combinator’s summer cohort. The company’s remarkable growth is evident, with an annualized total transaction volume (TTV) exceeding $550 million and a consistent month-on-month revenue growth rate of 30%.

Anchor CEO Segun Adeyemi commented, “If you look at the scope of product today, even though there were a few other players that have been in the market before us, there is no one that has the scope of offering that we have in the market today. This can be validated by looking at the scope of our offerings and comparing them to what similar companies do today.”

Anchor’s value proposition centers around strategic partnerships with regulated financial institutions. These partnerships enable fintechs and small to medium-sized enterprises (SMEs) to seamlessly integrate financial services into their core products. Utilizing Anchor’s robust APIs, fintechs and businesses can easily create bank accounts, issue payment cards, facilitate transactions, and offer savings and investment products, all without the complexities and costs associated with acquiring licenses.

The fintech startup has also announced a promising partnership with the fintech arm of MTN MoMo PSB, a collaboration expected to surpass Anchor’s previous growth milestones, marking a significant moment in its journey.

While fintechs have been Anchor’s primary clients, the company intends to expand its services to a broader range of businesses. Currently, it serves approximately 270 customers, with around 63 of these actively conducting transactions online. Notable clients include SeamlessHR, LifeBank, Penne, Zit, among others. This expansion aligns with the growing trend of integrating financial services across various sectors.

Considering the prospects within the embedded finance market in Africa, Justin Kan of Goat Capital remarked on its potential and said “The embedded finance market in Africa is nascent but growing fast at over 30% CAGR. Anchor’s growth rate is impressive and showing signs of becoming the category leader, which is something we look out for in our portfolio companies.”

Prior to its recent achievement, Anchor had already secured more than $1 million in pre-seed funding when it initially gained prominence.

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