Anchor raises $2.4m to expand product offerings
1 min Read September 4, 2023 at 1:25 PM UTC
- Anchor, a Nigerian banking-as-a-service (BaaS) provider, has raised $2.4 million in a seed investment round led by Justin Kan’s Goat Capital.
- The funding also saw participation from FoundersX, Rebel Fund, and some existing investors, including Y Combinator and Byld Ventures.
- The fintech emerged from stealth a year ago with over $1 million in pre-seed funding and now plans to double down on its suite of product offerings.
Embedded finance is the provision of financial services—such as credit and insurance—by non-financial providers to consumers, users, or businesses, through partnerships with third-party fintechs. The trend is fast-growing, with the market expected to grow from $10.3bn in 2022 to reach $39.8bn by 2029 in Africa and the Middle East and $384.8bn globally. Africa will account for 10% of this industry, with Anchor stating it’s serving a $7bn addressable market in Nigeria. There are various growth avenues players like Anchor could tap into to capture market share, one of which is partnerships with telco fintech businesses.
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