Anchor, a Nigerian innovator in Banking-as-a-Service (BaaS), has secured $2.4 million in seed funding to enhance its product offerings and expand its customer base. This investment, led by Goat Capital, empowers Anchor to address the growing demand for seamless financial integrations within digital products and services.
Founded by a team with extensive experience in the financial technology sector, Anchor offers APIs, dashboards, and development tools that simplify the process of embedding financial functionalities within existing platforms. This approach caters to the needs of neobanks, e-commerce businesses, and other tech-driven companies seeking to provide financial services to their users without the burden of building complex infrastructure.
By partnering with established financial institutions, Anchor streamlines the process of offering financial products like accounts, payments, and cards. This not only saves businesses significant time and resources but also allows them to deliver a more personalized and cost-effective financial experience to their customers.
Since its launch, Anchor has witnessed impressive growth, attracting over 270 clients across various sectors, including fintech, SaaS, and e-commerce. The company has also facilitated over $550 million in annualized transaction volume for its clients, demonstrating the value proposition of its embedded finance solutions.
This latest funding round will enable Anchor to focus on several key areas. The company plans to refine its compliance processes, invest in value-added products like ledger systems, and accelerate customer acquisition efforts. With a focus on digitally-native businesses, Anchor is well-positioned to capitalize on the burgeoning embedded finance market in Africa, estimated to be worth $7 billion in Nigeria alone.
A recent partnership with the fintech arm of Nigeria’s largest telecom operator, MTN, further strengthens Anchor’s position in the market. Additionally, the company is exploring potential expansion opportunities across other African countries.
Investors are optimistic about Anchor’s future. Goat Capital, the lead investor in this round, sees Anchor’s impressive growth trajectory and leadership in the embedded finance space as strong indicators of future success.
