Brass Gives In To Paystack-led Investment Group

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Brass Gives In To Paystack-led Investment Group
Brass Gives In To Paystack-led Investment Group

For an undisclosed sum, an investment consortium managed by Paystack has purchased Brass, a faltering fintech company in Nigeria.

PiggyVest, Ventures Platform, P1 Ventures, and angel investor Olumide Soyombo are among the other parties involved in the deal. Brass and Paystack both released separate statements on Tuesday announcing the transaction.

This news follows Brass’s disengagement of an undisclosed number of employees, which it attributed on the state of the economy just two months ago.

Four years ago, Sola Akindolu and Emmanuel Okeke co-founded a venture that needed $2 million to grow and adapt to the changing business environment.

What Financiers Contribute

The announcement from Paystack claims that in addition to a fresh injection of funding, each investment group member contributes years of expertise in funding and developing dependable financial service solutions to propel Brass into its next phase of expansion.

Amandine Lobelle, the Chief Operating Officer of Paystack, commented on acquisition, saying “Every day, thousands of businesses use Paystack’s payments tool to accept payments from customers from anywhere in the world. Payments, however, are only one part of a business’s financial stack.

“To meet their goals, ambitious businesses in Africa require a wide variety of world-class tools from payroll to expense management and beyond – the kinds of tools built by Nigeria-headquartered Brass.

“Brass and Paystack have had a long working relationship since Brass’ founding, and we’re thrilled today to announce a new chapter in our partnership,” he added.

Adding on the acquisition, Sola Akindolu, Founder of Brass disclosed that the organisation was founded four years ago with the straightforward goal of empowering Africans to become more successful and permission-less entrepreneurs.

Continuing, he also stated that the organisation has provided top-notch financial solutions for small businesses to tens of thousands of businesses throughout the years.

Akindolu said “Brass has grown tremendously since we started this incredible journey, and it continues to be an important player in Nigeria’s SMB economy.

“Today, I write to officially share that Paystack has led a consortium with members like Piggytech, Ventures Platform, and P1 Ventures to acquire Brass to continue the work we started. Brass has been product-led since its founding days, building incredible products with a great brand and leading an amazing team,” he added.

What You Should know

After the acquisition, Brass will grow under the direction of a new leadership team while maintaining its current customer base. The initial leadership team will go to pursue other opportunities, according to Akindolu. Things to be aware about In July 2020, Emmanuel Okeke and Sola Akindolu established Brass. Prior to joining Brass, CEO Akindolu oversaw product at YC-backed Kudi, while CTO Okeke oversaw engineering at Paystack, a Stripe affiliate.

In October 2021, the company secured a $1.7 million funding round to scale its offerings for “local entrepreneurs, traders, and fast-growing businesses.”

According to its general partner, Kola Aina, Ventures Platform, a pan-African venture capital firm, invested in the startup in part because of its goal of making banking work for small businesses.

Additional investors included Hustle Fund, Acuity Ventures, Uncovered Fund, and co-founder of Paystack, Ezra Olubi, and CEO of Flutterwave, Olugbenga “GB” Agboola.