Amid a slow response from traditional banks in Nigeria to adapt to the rapidly evolving digital banking landscape, banking-as-a-service (BaaS) platforms have seized the opportunity to offer more personalized and cost-effective financial services.
One such platform, YC-backed Nigerian fintech Anchor, which emerged out of stealth mode just a year ago with over $1 million in pre-seed funding, has secured $2.4 million in seed funding, with Goat Capital, led by Justin Kan, taking the helm of this investment round. Additional investors include FoundersX, Rebel Fund, and existing investors such as Y Combinator and Byld Ventures.
The company's core mission is to provide developers with a suite of tools, APIs, and dashboards to facilitate the integration and creation of banking solutions. This encompasses a range of financial services such as bill payments, savings, and card issuance.
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Anchor's approach involves collaborating with regulated banking institutions to enable businesses to cut the time it takes for the development of banking products from what would traditionally take years.
Since its launch in August 2022, Anchor has made significant strides. The platform claims it has successfully onboarded approximately 270 clients, with approximately 63 actively conducting transactions through its services. Its client base spans fintech companies, software-as-a-service (SaaS) providers, e-commerce enterprises, and various tech-enabled businesses this includes firms like Pennee, SeamlessHR, Bujeti, LifeBank, and Waza.
It also boasts impressive performance metrics, including generating over $550 million in annualized total transaction volume (TTV) and maintaining a month-on-month revenue growth rate of 30%.
Competing with the likes of JUMO, Maplerad, OnePipe, and Bloc in the Nigerian (Baas) landscape, Anchor aims to continue its growth trajectory and make a significant impact in the BaaS sector. It will use the newly acquired funds to improve its compliance systems, invest in value-added products, and onboard more customers.