Lagos, Nigeria – Nigerian digital bank for small businesses, Brass, has been acquired by an investment group spearheaded by Paystack. This group includes PiggyVest, Ventures Platform, P1 Ventures, and prominent angel investors Olumide Soyombo and Oo Nwoye. This acquisition results in the exit of Brass co-founders Sola Akindolu and Emmanuel Okeke.
Continuation Despite Leadership Change
Despite the leadership change, Brass’ customers and employees are assured of continuity. The product and services will remain unchanged, as stated by the current CEO, Akindolu: “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.”
Strategic Move by Paystack and PiggyVest
The acquisition aligns with Paystack and PiggyVest’s strategic interests. Paystack, known for building payment tools for businesses across Africa, and PiggyVest, which has expanded from consumer finance into social payments, see Brass as a complementary addition. This move potentially provides a robust customer pipeline and expands their market reach.
Challenges and Future Prospects
Brass faced significant challenges before the acquisition, including a funding freeze that led to disabled withdrawals for customers. However, a fresh capital injection in March 2024 allowed the company to resume operations. Despite these difficulties, the investment group is optimistic about Brass’ future. A statement from Paystack highlighted the group’s experience and commitment: “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.”
Financial Uncertainties
TechCabal reports that Brass has ₦2 billion in debt, which its leadership has struggled to account for. This presents potential liabilities that the new owners will need to address. However, the acquisition offers a fresh start and an opportunity to rebuild customer trust.
Next Steps
As Brass transitions to new leadership, no official announcements have been made regarding the new team. The primary focus for the new leaders will be stabilizing the company, ensuring reliable service to customers, and addressing any outstanding financial concerns.
