A group led by fintech titan Paystack has acquired Nigerian digital banking startup Brass in order to allay liquidity concerns and prevent closure.
Introduced by Emmanuel Okeke and Sola Akindolu in July 2020, Brass provides SMEs with a full-stack, commercial-grade banking service for a range of business classes, giving them the ability to grow their businesses and obtain more clarity and control over their financial operations.
Like other startups, Brass has experienced difficulties with the global economy and had to take on debt financing in order to handle customer withdrawals due to cash flow issues. Currently, Paystack, Piggytech, Ventures Platform, and P1 Ventures are part of a consortium that purchased it.
With Akindolu and Okeke departing the company, the consortium will now assume the startup’s debts and assets.
“Over the years, we have added and supported tens of thousands of businesses with top-end financial tools for local businesses, and we are just getting started. We have also had the incredible opportunity to build with some of the most brilliant and talented people we know.
Brass has grown tremendously since we started this incredible journey, and it continues to be an important player in Nigeria’s SMB economy,” said Akindolu.
“Following the acquisition, Brass will continue to build and support its customers and grow with a new leadership team, as the founding leadership team will leave to pursue other opportunities. The work of making entrepreneurship permission-less is far from finished, and we definitely look forward to what’s next from the new team.”
Since Brass’s founding, Amandine Lobelle, COO of Paystack, stated that the two companies have maintained a long-standing working relationship.
“We’re thrilled today to announce a new chapter in our partnership,” she said. “Each member of the investment group brings several years’ worth of experience financing and building reliable financial service products, and together with a new infusion of capital, we’re excited for Brass’ next stage of growth.”
