Nigerian digital banking startup Brass has been acquired by a Paystack-led consortium to mitigate liquidity concerns.
The acquisition round also saw participation from several investors which includes PiggyVest, Ventures Platform, P1 Ventures, and angel investors Oo Nwoye and Olumide Soyombo, for an undisclosed amount.
Speaking on the acquisition of Brass, Amandine Lobelle, COO at Paystack, said
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“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”.
The acquisition of Brass is coming after the fintech startup resolved transaction delays plaguing the platform since late 2023, due to challenging economic conditions. Those delays lingered for months, sparking liquidity concerns and prompting rumors of a shutdown.
In 2021, the fintech startup secured $1.7 million in funding to address the banking needs of local entrepreneurs, traders, and fast-growing businesses. Following the acquisition, Brass will continue to build and support its customers and grow with a new leadership team. The founding leadership team, including co-founders CEO Sola Akindolu and CTO Emmanuel Okeke, will step down from their positions.
Commenting on the acquisition of Brass, CEO and co-founder Sola Akindolu said,
“Brass has grown tremendously since we started this incredible journey, and it continues to be an important player in Nigeria’s SMB economy. Today, I write to officially share that Paystack has led a consortium with members like Piggytech, Ventures Platform, and P1 Ventures to acquire Brass to continue the work we started.
“Brass has been product-led since its founding days, building incredible products with a great brand and leading an amazing team. The work of making entrepreneurship permission-less is far from finished, and we definitely look forward to what’s next from the new team”.
While the specific impact of the acquisition on Brass’s product offerings and customer base remains unclear, the involvement of prominent fintech players like Paystack and PiggyVest suggests a potential focus on streamlining financial services for Nigerian entrepreneurs. This could involve integrating Brass’s existing
Launched in 2020, Brass is a digital bank that caters to small and medium-sized businesses with a range of products and tools designed to help them grow. These include credit and payment processing, payroll and expense management, API access, cash flow analysis, team and client management features, and core business services like point-of-sale systems, debit cards, and credit cards—all integrated within a dedicated business bank account.
Brass serves over 5,000 customers; from educational institutions and shopping centers to restaurants and tech startups like Eden and Mono. The startup co-founded by Sola Akindolu and Emmanuel Okeke in 2020, had raised $2 million over the period to build and grow through the changing times.