Sylvia Duruson
Paystack, a prominent Nigerian fintech company, led an investment group to acquire Brass, a digital bank serving small businesses in Nigeria. The acquisition was completed with the participation of notable investors such as PiggyVest, Ventures Platform, P1 Ventures, and angel investors Olumide Soyombo and Oo Nwoye.
The acquisition marks a significant transition for Brass, as its co-founders, Sola Akindolu and Emmanuel Okeke, will be exiting the business. However, this change in leadership will not impact the company’s customers or employees, as the product and services will remain unaltered.
Sola Akindolu, the outgoing CEO of Brass, expressed confidence in the new ownership, stating, “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.”
The Paystack-led investment group brings extensive experience in financing and building reliable financial service products. According to a statement from Paystack, “Together with a new infusion of capital, we’re excited for Brass’ next stage of growth.”
This acquisition comes on the heels of a challenging period for Brass, as the company had previously disabled withdrawals for customers due to a funding freeze, citing economic circumstances. The company had previously raised over $2 million from investors before facing this setback.
The fresh capital injection in March 2024 allowed Brass to resume processing withdrawals for affected businesses, paving the way for the acquisition. The acquisition presents an opportunity for Paystack and PiggyVest to expand their footprint in complementary business segments.
While PiggyVest has traditionally focused on consumer finance, its recent acquisition of Pocket (formerly Abeg) marked its entry into the social payments arena. Paystack, on the other hand, has built payment tools for businesses across Africa, potentially providing a customer pipeline for Brass.
As Brass transitions to new leadership, rebuilding customer trust will be a key priority after the turbulent few months the four-year-old startup has endured. Reports suggest that Brass may have liabilities to address, including a reported ₦2 billion in debt on its balance sheet.
Nevertheless, the acquisition represents a strategic move for the investment group, allowing them to tap into the growing digital banking market for small businesses in Nigeria. With their combined expertise and resources, the new owners aim to position Brass for sustained growth and success in the years to come.
