Anchor Raises $2.4M To Expand Product Offerings


Nigerian banking-as-a-service provider Anchor has secured $2.4 million in seed investment, led by Justin Kan’s Goat Capital. Other participants in the funding round include FoundersX, Rebel Fund, and existing investors Y Combinator and Byld Ventures. Anchor offers APIs, dashboards, and tools to help developers embed and build banking solutions. The platform differentiates itself by partnering with regulated banking institutions, enabling businesses to build banking products in a matter of days instead of years. Anchor’s APIs support various features, including business accounts, card issuance, bill payments, bulk disbursements, cross-border payments, and developer-only functionalities.

Key Takeaway

Anchor, a Nigerian banking-as-a-service provider, has raised $2.4 million in seed investment to expand its product offerings. The platform differentiates itself by partnering with regulated banking institutions, enabling businesses to build banking products in a matter of days.

Enabling Embedded Finance in Nigeria

Anchor entered the market a year ago, having raised over $1 million in pre-seed funding, and has quickly gained traction. The platform currently serves around 270 clients, with approximately 63 actively transacting on the platform. Its clientele includes fintechs, SaaS firms, e-commerce enterprises/marketplaces, and other tech-enabled businesses. Anchor has generated over $550 million in annualized total transaction volume (TTV) for these enterprises and is experiencing a month-on-month revenue growth of 30%. The company aims to improve its compliance system, invest in value-added products, and onboard more customers.

The Growing Market for Embedded Finance

Embedded finance is a rapidly growing market worldwide. The global embedded finance market is projected to be worth $384.8 billion by 2029, with Africa accounting for 10% of the industry. Anchor estimates that it is serving a $7 billion addressable market in Nigeria. To capture more market share, Anchor has recently partnered with the fintech arm of MTN, Nigeria’s largest telecom company. The company is also considering a pan-African expansion. Investors, including partner at lead investor Goat Capital Justin Kan, are optimistic about Anchor’s growth potential and its aim to become the category leader in the embedded finance market.

The Potential of Banking-as-a-Service (BaaS)

Anchor’s success highlights the potential of banking-as-a-service (BaaS) in addressing the shortcomings of incumbent banks in the digital banking landscape. BaaS providers like Anchor enable businesses to embed financial services within their products, offering more personalized and flexible solutions at a lower cost. These platforms cater to the needs of neobanks and other businesses seeking to provide bank accounts, payments, savings, and cards. With its comprehensive offerings and partnerships with regulated banking institutions, Anchor positions itself as a leading BaaS provider in Nigeria.


Anchor’s recent funding round of $2.4 million will allow the Nigerian embedded finance platform to further expand its product offerings. The company’s focus on enabling businesses to build banking products quickly and its partnerships with regulated banking institutions have contributed to its rapid growth in the Nigerian market. With the growing demand for embedded finance solutions, Anchor is well-positioned to tap into the potential of the banking-as-a-service market in Nigeria and beyond.

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