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Nigerian fintech startup raises $2.4mn in seed round

One of Nigeria’s financial technology (fintech) startups, Anchor, has raised $2.4 million in a seed round aimed at expanding its product offerings to its fast-growing customers nationwide.

The latest investment initiative by the banking-as-a-service (BaaS) provider came barely a year after it raised over $1 million in a pre-seed, thereby bringing its total raise to date to over $3.4 million.

According to the information on the seed round, the investment was led by Goat Capital and had FoundersX, Rebel Fund, and some existing investors, including Y Combinator and Byld Ventures, as participants

Commenting on the new fundraising, the startup Co-founder and CEO, Segun Adeyemi, noted that the company’s management had learned some lessons in the industry in the past year, including determining proper pricing, developing revenue sources positively affecting customers’ bottom line, and re-engineering its compliance processes, since it deputed in the financial services landscape.

According to him, with the latest funding the company will use those lessons as focal areas of its concentration

He said: “We want to improve our end-to-end compliance system, invest in value-added products like our ledger system, and onboard more customers.”

In his remarks, Partner at lead investor Goat Capital, Justin Kan, said that Anchor was also planning expansion to other African countries, which motivated Goat Capital’s investment in the BaaS.

The fintech expert explained: “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.”

Anchor was reported to have generated more than $550 million in annualized total transaction volume (TTV) by enabling fintech services, adding that it is increasing revenue by 30% month-on-month,

Adeyemi said Anchor’s APIs now support business accounts, card issuance, bill payments, bulk disbursements, cross-border payments, and developer-only features such as an audit log system and developer webhooks.

Tola Akinmutimi

Techrectory, Nigeria.

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