Nigerian fintech startup Brass acquired by Paystack-led consortium
While the acquisition offers Brass a lifeline and stability, some uncertainties remain.
After months of uncertainty marked by withdrawal processing delays 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 staff reductions by the startup in March 2024 attributed to economic challenges, and an attempt to secure funding through a combination of equity and debt financing. This funding aimed to address working capital issues.
Founded in 2020 by Sola Akindolu and Emmanuel Okeke, Brass offered business banking services to local businesses in need of financial and commerce tools. It had gone ahead to secure $2 million in funding over its lifespan. It however ran into liquidity issues in 2023, leading to acquisition talks with Flutterwave that ultimately fell through, as reported by TechCabal. Additionally, Brass pursued capital from larger startups like Moniepoint but was unsuccessful.
Now, the startup has announced its acquisition in a statement on Tuesday which has also been confirmed in a statement by Paystack.
Following the acquisition, Brass will continue serving 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 retain their positions. There will be no changes for customers either, with Brass's core product remaining largely unchanged.
While the acquisition offers Brass a lifeline and stability, some uncertainties remain. The new ownership group will inherit Brass's assets and liabilities, including any outstanding debts and unresolved customer issues. The coming months will be crucial in observing how the new leadership navigates these challenges.
