Grace Ashiru
In Nigeria’s rapidly evolving digital banking landscape, traditional banks have been slow to adapt, opening the door for banking-as-a-service (BaaS) platforms to step in and provide more personalized and cost-effective financial services. One of these platforms, Nigerian fintech Anchor, backed by Y Combinator, emerged from stealth mode just a year ago after securing over $1 million in pre-seed funding. Now, Anchor has successfully raised $2.4 million in seed funding, with Goat Capital, led by Justin Kan, taking the lead in this investment round. Other investors joining the fray include FoundersX, Rebel Fund, and existing supporters like Y Combinator and Byld Ventures.
At its heart, the company is driven by the mission to empower developers with a comprehensive set of tools, APIs, and dashboards designed to streamline the integration and development of banking solutions. This encompasses various financial services, including bill payments, savings, and card issuance.
Anchor’s strategy revolves around partnering with regulated banking institutions, a collaboration that helps businesses drastically reduce the time needed to develop banking products, a process that typically spans several years.
Since its inception in August 2022, Anchor has achieved noteworthy progress. The platform reports that it has effectively onboarded around 270 clients, approximately 63 of whom are actively engaged in transactions through its services. Its clientele encompasses various businesses, including fintech companies, software-as-a-service (SaaS) providers, e-commerce enterprises, and various tech-enabled ventures. Notable firms among its clients include Pennee, SeamlessHR, Bujeti, LifeBank, and Waza.
Anchor’s impressive performance metrics include achieving an annualized total transaction volume (TTV) exceeding $550 million and sustaining a month-on-month revenue growth rate of 30%.
In a competitive landscape that includes players like JUMO, Maplerad, OnePipe, and Bloc within the Nigerian BaaS sector, Anchor is determined to maintain its growth trajectory and exert a substantial influence. The recently secured funds will be channeled towards enhancing its compliance systems, investing in value-added products, and expanding its customer base.
