Nigerian Digital Bank Brass Acquired by Investment Group Led by Paystack

Nigerian Digital Bank Brass Acquired by Investment Group Led by Paystack

By Staff Writer, 28 May 2024

Emmanuel Okeke and Sola Akindolu, Co-founders of Brass

In a significant move within Nigeria's fintech sector, digital bank Brass, which caters to small businesses, has been acquired by an investment group spearheaded by Paystack. The consortium also includes PiggyVest, Ventures Platform, P1 Ventures, and angel investors Olumide Soyombo and Oo Nwoye.

This acquisition results in the departure of Brass's co-founders, Sola Akindolu and Emmanuel Okeke, who will exit the business to explore new ventures. Despite the leadership change, Brass assures its customers and employees that the product and service offerings will remain unchanged.

Brass CEO Akindolu emphasized the bank's ongoing commitment to its customers and highlighted that the new leadership team, supported by the experienced investment group, will drive the company's next phase of growth. Paystack echoed this sentiment, expressing enthusiasm for Brass's future with the infusion of fresh capital and seasoned expertise.

The acquisition follows a challenging period for Brass, marked by a three-month freeze on customer withdrawals due to a funding halt and economic pressures. Previously, the bank had secured over $2 million in investments. However, a new capital injection in March 2024 enabled Brass to resume withdrawals for affected businesses, stabilizing the company ahead of the acquisition.

With the new backing and leadership, Brass is poised to strengthen its position and expand its services in Nigeria's competitive financial landscape.

Source: Chimgozirim Nwokoma / TechPoint Africa

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