Nigerian fintech startup, Anchor, has revealed a $2.4 million seed investment after coming out of stealth in 2022 with $1 million in pre-seed funding. The company will use the funds to broaden its product offerings.
Goat Capital led the round, with participation from FoundersX, Rebel Fund, and some existing investors, including Y Combinator and Byld Ventures.
Anchor is a banking-as-a-service (BaaS) provider that offers APIs, dashboards, and tools to help developers embed and build banking solutions. It competes with JUMO, Maplerad, OnePipe, and Bloc.
When Segun Adeyemi, Olamide Sobowale, and Gbekeloluwa Olufotebi launched Anchor, the fintech caters to only customer accounts. It helps businesses provide services, including payments, savings, and card issuance.
Currently, Anchor's APIs support cross-border payments, business accounts, card issuance, bill payments, bulk disbursements, and developer-only features like an audit log system and developer webhooks. It collaborates with regulated banking institutions to assist companies in cutting the time it takes to develop banking products from years to days.
It had 30 clients when it emerged from stealth in 2022 but now has about 270 customers, with about 63 companies active on the platform and online.
Fintechs, SaaS companies, eCommerce companies or marketplaces, and other tech-enabled businesses are among its clients. These startups include Pennee, SeamlessHR, Bujeti, LifeBank, and Waza.
The company has generated more than $550 million in annualised total transaction volume (TTV) by offering fintech services to these businesses. While the company makes money from processing fees, account and card issuance fees, and interest from the float, Anchor says revenue is increasing 30% month over month.
