In 2015, the emergence of financial technology platforms like Flutterwave and Paystack revolutionized online transactions for African businesses by simplifying the integration of payment systems. This innovation eliminated the need for companies to develop payment infrastructure from scratch or rely on cumbersome foreign solutions.
During this period, Amplify, another payment startup, launched with a unique focus on enabling payments through social media platforms. This approach caught the attention of Nigerian digital bank Carbon, which acquired Amplify in 2019. After the acquisition, Amplify’s co-founder and CEO, Segun Adeyemi, announced plans to take a break but hinted at starting another venture in the future. He later joined JUMO, a South African fintech, before leaving in 2022 to establish Anchor, a new fintech company focused on banking-as-a-service (BaaS).
Introducing Anchor
Founded by Adeyemi alongside Olamide Sobowale and Gbekeloluwa Olufotebi, Anchor aims to provide a comprehensive infrastructure for businesses looking to embed financial services into their offerings. Unlike Amplify, which concentrated on payments, Anchor’s focus extends to building, embedding, and launching a wide range of financial services.
Speaking about the venture, Adeyemi explained, “Businesses now want to offer more than just payment solutions. There’s a growing need for platforms that provide robust financial services, and we built Anchor to address this demand.”
The BaaS Opportunity in Africa
Globally, banking-as-a-service platforms like Unit and Rapyd have gained popularity for enabling startups and neobanks to incorporate financial services without building their own infrastructure. In Africa, where fintech has dominated venture capital investments, building a financial services startup can be both costly and time-consuming. Challenges such as regulatory compliance, core banking infrastructure, and third-party integrations can delay launch timelines significantly.
Anchor seeks to streamline this process by offering APIs, tools, and dashboards that help developers create products like digital bank accounts, fund transfers, savings, loan services, and card issuance. With its platform, businesses can launch financial services within days instead of months, ensuring compliance, security, and scalability.
Anchor’s Growth and Future Plans
Launched in early 2022, Anchor entered a private beta phase in May, attracting over 30 businesses, including Pivo, Outpost Health, Dillali, and Pennee. The startup has reported significant growth, with transaction volumes increasing and monthly growth rates exceeding 200%. Revenue is generated through fees on account issuance, money transfers, deposits, and other services.Anchor recently announced raising over $1 million in pre-seed funding, with investors including Byld Ventures, Luno Expeditions, Niche Capital, and Y Combinator. The funds will be used to enhance the platform’s infrastructure, strengthen regulatory compliance, and onboard new customers.
Competitive Landscape
Anchor operates in a competitive market alongside players like OnePipe and Bloc, as well as larger fintech firms like Flutterwave. However, Adeyemi believes Anchor’s edge lies in its founding team’s technical expertise and a strong focus on scalability and speed to market.
Sobowale, the company’s CTO, previously worked at leading Nigerian fintechs such as Kuda and Carbon, while Olufotebi, the COO, has experience as a full-stack developer at Booking.com, where he developed financial operations tools. Together, the team has a deep understanding of the challenges in launching financial products and aims to simplify the process for other businesses.
Building a Strong Ecosystem
Anchor’s CEO highlights the network effect of its platform: as more companies adopt Anchor’s services, the infrastructure becomes stronger, creating a competitive edge. The platform’s ease of integration, coupled with high switching costs, makes it an attractive option for businesses exploring financial services.
Looking ahead, Anchor aims to maintain its first-mover advantage in Africa’s BaaS space, empowering businesses to offer tailored financial solutions and drive innovation across the continent.
