Sylvia Duruson
Kenyan startup Peleza has merged with YC-backed Prembly to create the Prembly Group. This strategic alliance combines Peleza’s expertise in background checks with Prembly’s prowess in identity verification, security, and compliance.
Peleza, established in 2015, has built a strong presence in East Africa. It boasts key partnerships with major players like Uber, Bolt, and FedEx. Prembly, though younger, having been founded in 2021, has quickly made its mark in the industry. It secured $2.8 million in seed funding in 2022, with backing from notable investors such as MaC Venture Capital and Soma Capital.
The merger aims to leverage the strengths of both companies. Prembly Group will utilize Peleza’s industry knowledge to expand its East African operations. Simultaneously, it will enhance customer service offerings across various markets.
This union is not a sudden development. For the past 18 months, Peleza has been utilizing Prembly’s infrastructure. Marita Mutemi, Peleza’s founder, views the merger as a natural progression of their existing collaboration.
Leadership roles have been reassigned to ensure smooth integration. Lanre Ogungbe, Prembly’s co-founder, will lead as CEO of the Prembly Group. Mutemi will take on the role of CFO for the group while also serving as CEO of Prembly East Africa. Other executives from Peleza will retain leadership positions, maintaining continuity.
The newly formed entity will operate under the Prembly Group name. This decision was reached mutually, aiming to capitalize on Prembly’s established brand equity and global recognition in compliance and digital security solutions.
The merger brings together a workforce of approximately 100 employees. However, due to role duplications, about ten staff members will be let go with severance packages.
Both companies have expressed optimism about the merger’s potential. Ogungbe believes it significantly enhances their service options and value proposition. He envisions the Prembly Group becoming the most widely used provider across Pan-Africa and achieving leadership status in the identity management space.
Plans are underway to integrate the KYC/B technology platforms of both companies. This integration is expected to create a more robust and comprehensive suite of services for clients across various sectors.
While specific financial details of the transaction were not disclosed, the merger represents a significant consolidation in the African identity management market. It brings together Peleza’s established presence and industry partnerships with Prembly’s innovative technology and recent funding success.
The formation of the Prembly Group signals a new chapter in African identity management. By combining their resources, expertise, and market presence, the merged entity is poised to offer enhanced services and expand its reach across the continent and beyond.
As the digital landscape continues to evolve, the need for reliable identity verification and background check services grows. The Prembly Group aims to meet this demand by leveraging the strengths of both its constituent companies. This merger may set a precedent for further consolidation in the African tech sector, particularly in areas related to digital security and compliance.
