Goat Capital has led the fundraising of $2.4 million for Anchor, a pan-African Banking-as-a-Service (Baas) fintech. This fund will be used for the expansion of its operations, establishment of new products, and the application for all necessary licenses and compliance framework.
Besides Goat Capital, FoundersX, Rebel Fund, Y Combinator, and some other global investors were also involved.
The fintech will make accessible the development of banking products, reducing a process that used to take years to days. In collaboration with controlled banking organizations, their APIs allow users to establish bank accounts, generate cards, make transactions effortlessly, and furnish products such as savings and investment opportunities.
Segun Adeyemi, CEO and co-founder of the firm said “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. We have grown tremendously and increased our impact across various clients and customer segments in Africa.”
Anchor has grown significantly over the years from just $1 million in pre-seed and a small customer base to about $550 million in yearly turnover. The fintech has a 30% monthly growth and a customer base that includes the likes of SeamlessHR, Bujeti, Zit, Penne, and LifeBank.
In addition, they have collaborated with MoMo PSB which is the fintech arm of MTN, Africa’s biggest telecom in the country which will grow their customer base astronomically.
By 2029 the embedded money market is expected to rise to $384.8 billion with a 30% CAGR. Africa is also expected to achieve $40 billion by 2029 with a 33.2% CAGR. Anchor’s base, Nigeria has about 7 billion total addressable markets (TAM) showing a significant growth ability for the company.
The CEO revealed “It’s no news that companies of all kinds are embedding financial products into their offerings, and we have seen this play out over the last few years in Africa. At Anchor, we are going beyond just offering these banking APIs to our customers. But also empowering them with insights into customer behaviors, preferences, and financial trends that will enable them to serve their customers better.” “This funding allows us to build out complementary parts of our core BaaS platform, strengthen our compliance infrastructure and offer other value-added services.”
About their investment in Anchor, Justin Kan who is a partner at Goat Capital said “The embedded finance market in Africa is nascent but growing fast at over 30% CAGR. 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”.
Anchor’s dedication is to boost financial ability and profitability through automated financial industry and eliminating the high cost of infrastructure establishment or regulatory issues.