Fintech
Nigerian fintech startup Brass acquired by Paystack-led consortium
Nigerian digital banking startup Brass has been acquired by a consortium led by fintech giant Paystack to ease liquidity problems and avoid closure.
Launched in July 2020 by Sola Akindolu and Emmanuel Okeke, Brass provides SMEs with comprehensive, commercial-grade banking service across various business classes, enabling them to gain greater clarity and control over their monetary operations and the power to expand their businesses.
Like other startups, Brass was hit by global economic hardship and faced liquidity issues that forced it to take on debt financing to process customer withdrawals. It has now been acquired by a consortium led by Paystack and including Piggytech, Ventures Platform and P1 Ventures.
The consortium will now take over the assets and liabilities of the startup, while Akindolu and Okeke will leave the business.
“Over the years, we’ve added and supported tens of thousands of companies with high-end financial tools for local businesses, and we’re just getting started. We’ve also had the incredible opportunity to build with some of the brightest and most talented people we know.
Brass has grown tremendously since we began this incredible journey and continues to play an important role in the Nigerian SME 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 leaves the company to pursue other opportunities. The work to make entrepreneurship permissionless is far from over, and we can’t wait to see what’s next for the new team.”
Amandine Lobelle, COO of Paystack, said Brass and Paystack have had a long working relationship since Brass was founded.
“We are thrilled to announce a new chapter in our partnership today,” he said. “Each member of the investment team brings with them several years of experience in financing and building trusted financial services products, and coupled with a new infusion of capital, we are excited about Brass’ next phase of growth.”