Nigerian fintech startup Brass acquired by Paystack-led consortium

After months of uncertainty marked by delays in processing withdrawals starting in October 2023, Nigerian digital banking platform Brass has been acquired by an investment group led by fintech giant Paystack for an undisclosed amount.

Other participants in the consortium include PiggyVest, Ventures Platform, P1 Ventures and angel investors Oo Nwoye and Olumide Soyombo.

This development follows the startup’s reduction in staff in March 2024 attributed to economic challenges and an attempt to secure funding through a combination of equity and debt financing. This financing aimed to address working capital issues.

Founded in 2020 by Sola Akindolu and Emmanuel Okeke, Brass offered corporate banking services to local businesses in need of financial and business tools. He had gone on to secure $2 million in funding over his lifetime. However, it ran into liquidity problems in 2023, leading to acquisition talks with Flutterwave that ultimately fell through, as reported by TechCabal. Additionally, Brass has sought capital from larger startups like Moniepoint, but to no avail.

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Now, the startup has announced its acquisition in a statement on Tuesday, which was also confirmed in a statement from Paystack.

Following the acquisition, Brass will continue to serve its customers and pursue growth under new leadership. The founding team, including CEO Sola Akindolu, CTO Emmanuel Okeke and head of product Tolulope Saba, will depart to pursue other opportunities.

The good news for Brass employees and customers is that minimal operational disruption is expected. All other employees will keep their jobs. There will be no changes for customers either, as Brass’ core product will remain largely unchanged.

While the acquisition offers Brass a lifeline and stability, some uncertainties remain. The new ownership group will inherit Brass’ assets and liabilities, including any outstanding debts and unresolved customer issues. The next few months will be crucial in watching how the new leadership addresses these challenges.

Source