In the news:
- Brass, a Nigerian business banking startup, has been acquired by a consortium led by Paystack and PiggyVest, Ventures Platform, and P1 Ventures.
- The startup, which faced liquidity issues and received new capital in March 2024, raised $1.7 million in 2021 to support Nigeria’s underserved entrepreneurs and businesses.
Brass, the Nigerian business banking startup has been acquired by a consortium of investors led by payment fintech company Paystack.
Other investors in the acquisition deal include PiggyVest, Ventures Platform, and P1 Ventures, Digital TimesNG quotes a report by TechLabari.
Founder and CEO Sola Akindolu and CTO Emmanuel Okeke will reportedly depart the company.
The company’s customers and employees, however, will not be affected by this acquisition, as the product will remain the same.
Brass CEO, Akindolu said, “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.”
“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,” a statement from Paystack read.
The company had been facing uncertainty after issues with delays in processing customer withdrawals began in October 2023 with brought up concerns of liquidity issues.
However, the company was able to receive a fresh capital injection in March 2024, allowing it to process withdrawals for affected businesses.
The company held talks with investors for a round of debt financing in the area of $300,000 to $500,000 to allow it to remain operational.
Brass raised $1.7 million in 2021 to address Nigeria’s heavily underserved banking needs of local entrepreneurs, traders, and fast-growing businesses.
The funding round included Flutterwave, Paystack, Hustle Fund, Acuity Ventures, Uncovered Fund, and Ventures Platform.
