Brass, a Nigerian digital bank for small businesses, was acquired by an investment group led by Paystack. The acquisition sees co-founders exiting the company amid a previous withdrawal suspension due to funding issues.
Brass, a Nigerian digital bank catering to small businesses, has been acquired by an investment consortium spearheaded by Paystack. The consortium, including PiggyVest, Ventures Platform, P1 Ventures, and angel investors Olumide Soyombo and Oo Nwoye, finalized the acquisition, prompting Brass co-founders Sola Akindolu and Emmanuel Okeke to exit the company.
This move follows Brass' previous suspension of customer withdrawals due to a funding freeze. However, this acquisition assures customers and employees that operations will continue uninterrupted.
Paystack emphasized its commitment to Brass' growth under new leadership, touting the consortium's collective financial expertise. Brass' recent struggles, including its inability to provide deposit access and substantial debt reported by TechCabal, raise challenges for its new owners.
Despite these hurdles, the acquisition offers Paystack and PiggyVest strategic opportunities to expand their offerings in the financial services sector, leveraging Brass' business-focused platform. As Brass transitions to new leadership, rebuilding customer confidence remains a priority amidst financial uncertainties.
