Anchor, a pan-African provider of banking as a service (BaaS), based in Nigeria, has raised US$2.4 million in a seed funding round to launch new products, improve its infrastructure for licensing and compliance, and assess potential growth markets.
The platform was launched in August 2022, It streamlines the process of creating financial products, cutting it from years to days.
Anchor’s APIs give its users the ability to create bank accounts, issue cards, make and receive payments conveniently, and provide savings and investment products through partnerships with regulated banking institutions.
“We are thrilled to have gathered such strong support from investors who share our vision of expanding access to financial choices through BaaS and embedded finance. This has been a significant journey for the Anchor team after our pre-seed raise last year.” According to Segun Adeyemi, CEO and co-founder of Anchor, We have grown tremendously and increased our impact across various clients and customer segments in Africa.”
The embedded finance sector in Africa is still in its infancy but is expanding quickly, according to Justin Kan, partner at Goat Capital.
“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. We are excited to partner with Segun and the team to leverage BaaS solutions to create financial prosperity for the continent,” Kan said.
With revenue increasing 30% month over month (MoM), Anchor has reached over US$550 million in annual total transaction volume (TTV), and its clientele includes SeamlessHR, Bujeti, Zit, Penne, and LifeBank.
The company has announced its partnership with MTN MoMo PSB, Nigeria’s largest telecom operator in Africa, whose fintech division it claims would help it surpass its prior growth rates.
Read more on Tech Gist Africa:
Moove, a Nigerian mobility fintech startup, has announced a new funding round of $76 million
Traction, a startup offering merchant solutions in Nigeria, raises $6 million
MyCover.ai, an insurtech start-up in Nigeria, received $1.25 million in pre-seed funding
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