Paystack-Led Group Acquires Nigerian Digital Bank Brass

Nigerian digital bank for small businesses, Brass, has been acquired by an investment group led by Paystack.

The group includes PiggyVest, Ventures Platform, P1 Ventures, and angel investors Olumide Soyombo and Oo Nwoye. 

This acquisition will see Brass's co-founders, Sola Akindolu and Emmanuel Okeke, exit the business.

Despite the leadership change, the company assures customers and employees that the product will remain unchanged.

"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," said Brass CEO Akindolu.

Paystack also expressed enthusiasm for the acquisition, stating, "Each member of the investment group brings several years' worth of experience financing and building reliable financial service products, and together with a new infusion of capital, we're excited for Brass' next stage of growth."

This acquisition follows a challenging period for Brass, which had disabled customer withdrawals a few months prior due to a funding freeze. Despite these issues, a fresh capital injection in March 2024 enabled Brass to resume withdrawals for affected businesses.

The acquisition allows Paystack and PiggyVest to expand their operations. While PiggyVest has traditionally focused on consumer finance, its acquisition of Pocket (formerly Abeg) marked its entry into the social payments segment.

Paystack, known for its payment tools for businesses across Africa, could potentially provide a customer pipeline for Brass.

Brass is expected to announce new leadership as its founders exit. The new team faces the challenge of rebuilding customer trust after a tumultuous period for the four-year-old startup. 

According to TechCabal, Brass reportedly has ₦2 billion in debt on its balance sheet, which the current leadership cannot account for. While the acquisition offers new opportunities for Paystack and PiggyVest, it also involves taking on substantial liabilities.